Ukrainian authorities have seized more than $8.3 million in USDT from wallets controlled by an individual allegedly tied to an international hacking group, then transferred the assets to ARMA, the country’s state asset management agency. Prosecutors described it as the first case in which confiscated crypto assets were physically handed over to state management.
Authorities link wallets to ransomware operation
According to Ukraine’s State Bureau of Investigation, the group carried out ransomware attacks against individuals and companies in Europe and the United States. Investigators say the operation captured confidential data and redirected illicit proceeds into Ukrainian real estate, vehicles, and other high-value property.
Prosecutors said four suspects, including the alleged organizer, have been detained and remain in custody. They added that the group’s activity caused losses of more than $100 million. The total value of confiscated assets now exceeds $11.1 million, including residential properties, vehicles, $1 million in cash, and cryptocurrency holdings.
ARMA takes on its first digital asset case
ARMA, formally the National Agency for Finding, Tracing, and Management of Assets, is responsible for property seized in criminal proceedings. Officials said this investigation marks the agency’s first formal transfer and management of digital assets, expanding its role beyond conventional seized property.
The move comes as ARMA continues a restructuring process launched in 2025. The reform, supported by the European Union, is intended to improve transparency in the handling of confiscated assets and answer earlier criticism over oversight.
Ukraine continues building its crypto policy framework
Ukraine has been moving toward a more institutional approach to digital assets. Chainalysis data shows that between mid-2024 and mid-2025, the country ranked fourth in Europe with $206.3 billion in crypto transaction volume. Local media had previously reported that officials were considering a national strategic crypto reserve.
Ukraine legalized virtual assets in 2022 and is still advancing tax and regulatory legislation aligned with European Union standards. Parliament approved the bill in its first reading last year. UK-based think tank RUSI has estimated that stricter controls could help the country recover at least $10 billion in stolen funds and lost tax revenue.