Ukraine has for the first time transferred seized cryptocurrency into state custody, a milestone move that underscores Kyiv’s growing role as a major government crypto holder and its effort to tighten control over illicit digital funds.
More than $8.3 million in the stablecoin USDT was moved into a crypto wallet managed by ARMA — the National Agency for Finding, Tracing and Management of Assets — the Prosecutor General’s Office said in a Telegram statement. “This is the first case when seized crypto assets have actually been transferred to the management of the state,” the office added.
The funds originated from wallets tied to an alleged member of an international hacking ring accused of launching cyberattacks across Europe and the U.S., stealing confidential data, demanding ransoms, and laundering proceeds in Ukraine by buying real estate, cars and other high‑value goods. Prosecutors estimate the group’s activities caused more than $100 million in damages. Four suspects, including the alleged organizer, are in custody; authorities have seized more than $11.1 million in assets so far, including homes, vehicles, $1 million in cash and the crypto.
ARMA’s takeover of the crypto marks its first handoff of digital assets. The transfer follows a 2025 overhaul of the agency — long criticized for opacity — that unlocked hundreds of millions of euros in EU support and was designed to make seizure and asset management more transparent and accountable.
The development comes as Ukraine cements a formal approach to digital assets. The country legalized virtual assets in 2022 and is advancing legislation to tax and regulate crypto markets in line with EU rules; parliament passed the bill in a first reading last year. Ukraine is also one of Europe’s most crypto‑active countries: Chainalysis ranked it fourth in Europe by transaction volume, with $206.3 billion received between mid‑2024 and mid‑2025, and public officials reportedly hold about $2.8 billion in Bitcoin. Local media and officials have even discussed creating a strategic crypto reserve.
Watchdogs say stronger oversight could unlock large recoveries. The Royal United Services Institute estimated last year that Ukraine could recover at least $10 billion in stolen funds and lost tax revenue by tightening crypto rules, warning that weak controls had made the country a laundering hub, including for Russian money.
“Modern crime has long since moved into the digital space,” the Prosecutor General’s Office noted. “We continue to work.” For the crypto industry and regulators, Ukraine’s move signals a step toward building the legal and operational rails needed to seize, manage and potentially repurpose illicit digital assets.
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