Ukraine transfers $8.3 million in seized hacker crypto to state wallet, plans military bond purchase

The Ukrainian government has moved over $8.3 million in USDT into a state-controlled crypto wallet. The funds were seized from an alleged international cybercrime ring. 

This will be the first time that confiscated digital assets are placed under the authority of state management. However, the funds must remain intact until the case is concluded. 

How did Ukraine seize over $8.3 million in USDT?

The State Bureau of Investigation (SBI), Ukraine’s National Police internal affairs division, and U.S. authorities conducted a joint investigation into a hacking group accused of carrying out cyberattacks on individuals and businesses across Europe and the United States. 

The group allegedly stole confidential data and demanded ransoms, leading to more than $100 million in victim losses. The group allegedly laundered money inside Ukraine by buying houses, apartments, cars, and other expensive property. 

Four suspects have been detained, including an individual identified as the group’s organizer. 

Authorities seized $8.3 million in cryptocurrency and more than $11.1 million in total, covering residential properties, vehicles, and roughly $1 million in physical cash. 

Ukraine’s Prosecutor General’s Office confirmed that the seized funds were transferred to the Asset Recovery and Management Agency (ARMA), which is responsible for handling property tied to criminal proceedings. ARMA has managed seized real estate and vehicles for years, but had never held cryptocurrency on its books until now. 

How will Ukraine spend the $8.3 million? 

ARMA intends to convert the seized USDT to Ukrainian hryvnias and then use it to buy government military bonds. These are debt instruments Ukraine issues to encompass defense and public spending during its ongoing war with Russia. Investors get a fixed return at maturity.

Once converted, the $8.3 million will be equivalent to roughly 372 million Ukrainian hryvnias at current rates.

ARMA currently holds the cryptocurrency as a custodian under court order, not as an owner. The state can only permanently claim the funds after a conviction has been handed down, and none of the four detained suspects have been tried yet.

The seized-crypto-to-bonds approach echoes policy in the United States, where an executive order led to the creation of a strategic crypto reserve that is funded with assets seized in criminal and civil cases.

Cryptopolitan previously reported that Ukraine has been escalating its enforcement against crypto-linked illicit finance. In July 2025, the country’s President, Volodymyr Zelenskyy, signed a decree sanctioning 60 crypto entities and 73 individuals over ties to Russian fund movements.

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