Trump authorizes private cyber operations to target crypto scams

President Donald J. Trump issued a National Security Presidential Memorandum on Aug. 12 authorizing vetted U.S. companies to conduct federally supervised cyber operations to disrupt foreign criminal networks that target Americans, including schemes using cryptocurrency.

The memorandum, titled “Expanding Capabilities to Combat Transnational Cyber-Enabled Crime,” directs creation of a program managed by the National Coordination Center. Justice Department and Department of Homeland Security appointees will serve as co-executive directors to coordinate mission approvals.

Under the program, accepted companies may perform cyber surveillance and limited “cyber effects” operations only after federal approval. Participating firms must contract with either DOJ or DHS, meet technical and personnel standards, and disclose related commercial agreements. Implementation guidance could require a bond or escrow of at least $1 million that may be forfeited for contractual noncompliance.

Officials have 60 days from Aug. 12 to establish consensus procedures covering eligibility, target-review rules and safeguards for U.S. persons. The memorandum states no mission may receive approval until procedures comply with constitutional, statutory and international obligations.

The FBI’s 2025 Internet Crime Report recorded 1,008,597 complaints and $20.877 billion in reported losses. Complaints tagged with a cryptocurrency descriptor totaled 181,565 and $11.37 billion in losses. Cryptocurrency investment fraud accounted for $7.2 billion of that total.

Earlier enforcement actions combined sanctions, seizures and international cooperation. In June, authorities used sanctions, a cloud infrastructure seizure and blockchain analysis against entities linked to overseas scam compounds. An April operation resulted in at least 276 arrests and the dismantling of multiple alleged scam centers. A public-private initiative called Operation Atlantic mapped more than $45 million in cryptocurrency fraud, identified over 20,000 wallet addresses tied to victims in more than 30 countries and froze roughly $12 million in stolen funds.

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, wrote on X that “This action, while not crypto-specific, is a major step toward shutting down the scammers who exploit crypto to prey on Americans.”

The memorandum creates an ongoing channel for contracted corporate operators to propose and carry out federally approved missions rather than relying solely on traditional law enforcement tools. Details on oversight, data sharing and liability will be determined during the 60-day rulemaking and guidance process.