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Your Crypto News Today > News > Crypto > Bitcoin > Has Congress quietly forced the Department of War to use Bitcoin to bankrupt Chinese hackers?
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Has Congress quietly forced the Department of War to use Bitcoin to bankrupt Chinese hackers?

December 9, 2025 10 Min Read
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Has Congress quietly forced the Department of War to use Bitcoin to bankrupt Chinese hackers?

Table of Contents

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  • Pentagon secretly exploring Bitcoin’s navy energy?
  • Cybersecurity companies hyperlink BRICKSTORM backdoor to long-running VMware compromise
  • The modification’s associated reporting rails matter for execution.
  • Situations to observe over the 2026 horizon move immediately from the statutory tasking.

The Home’s new fiscal 2026 protection invoice directs the Pentagon to develop choices to impose prices on state-backed hackers who goal defense-critical infrastructure in our on-line world.

Part 1543 of the chamber’s modification orders the Underneath Secretary of Protection for Coverage and the Chairman of the Joint Chiefs of Workers, highlighted by Jason Lowery, in session with different federal entities, to review how navy capabilities can increase adversary prices and cut back incentives to assault, with a briefing and report due by Dec. 1, 2026.

In keeping with the Home Armed Companies Committee textual content, the research should consider offensive cyber operations on their very own and together with non-cyber measures. It should develop methodologies for selectively revealing or concealing capabilities.

The mandate is exact in scope and outcomes.

The Pentagon is tasked with assessing adversary capabilities and intent, figuring out targets the place value imposition would have leverage, prioritizing targets, inventorying related Protection Division capabilities and investments, and integrating with different companies, allies, trade, and academia.

The research should additionally overview authorized and coverage authorities for tailor-made response choices, together with actions towards pre-positioning in essential networks. The modification defines imposing prices as actions that ship financial, diplomatic, informational, or navy penalties adequate to alter the adversary’s habits.

Pentagon secretly exploring Bitcoin’s navy energy?

Whereas the directive will not be about Bitcoin, it formalizes a cost-imposition framework that aligns with Jason Lowery’s SoftWar thesis, which frames proof-of-work as a power-projection system in our on-line world.

Additional, the doc goes out of its option to keep away from explicitly naming Bitcoin, opting as a substitute for broader language about “proof-of-work” and value imposition in our on-line world.

That omission could also be deliberate: holding terminology obscure would restrict what outsiders can infer about capabilities, targets, or operational intent.

The warning additionally tracks with Lowery’s personal historical past; he has beforehand deleted posts and walked again public framing, and SoftWar itself was positioned underneath an official safety overview final October, underscoring that components of this discourse have already been handled as delicate.

In prior reporting, SoftWar has been introduced as a nationwide safety doctrine, not only a crypto narrative, with the core declare that proof-of-work can worth abuse and make sure courses of cyberattacks uneconomical at scale.

A Division of Struggle (previously Protection) safety and coverage overview of the thesis positioned the idea into the reside coverage debate, and subsequent protection of a proposed U.S. Bitcoin nationwide protection coverage described a Mutually Assured Destruction method that makes use of credible, energy-backed prices as a deterrent.

Michael Saylor’s public alignment characterised Bitcoin as a digital protection system, an internet-scale cost-imposition layer, reinforcing the doctrinal framing.

The fast context for Part 1543 is an advisory marketing campaign on Chinese language state-sponsored exercise that highlights the long-term persistence of virtualization control-plane exercise.

Cybersecurity companies hyperlink BRICKSTORM backdoor to long-running VMware compromise

In keeping with Reuters, U.S. and Canadian companies warned that PRC-linked operators used a customized Go-based BRICKSTORM backdoor towards VMware vSphere, vCenter, and ESXi to determine sturdy entry for lateral motion and potential sabotage, together with a case the place entry spanned from April 2024–September 2025.

Division of Struggle malware evaluation and CISA’s report point out that the tradecraft is in step with pre-positioning that might be activated for disruption. Part 1543 goals to design methods to impose prices on that habits, together with choices that mix offensive cyber operations with non-cyber instruments.

SoftWar’s lens turns the statutory language into system design decisions.

If the objective is to boost attacker working bills, then right-sized, adaptive proof-of-work turns into a candidate management at high-risk interfaces.

That may embrace consumer puzzles that rate-limit distant administrative actions, pricing bulk API entry, or gating anomalous RPC calls that contact programs supporting shipyards, depots, and bases.

Selective reveal might sign thresholds that set off expensive verification on the attacker’s path, whereas concealment might quietly drain automated campaigns by changing low cost replay into materials useful resource burn.

Our protection of AuthLN, a proof-of-work-based authentication sample that costs login abuse, confirmed how financial friction modifications attacker return on funding on the level of contact, offering a micro instance of SoftWar economics at work.

The modification’s associated reporting rails matter for execution.

Part 1545 requires annual Mission Assurance Coordination Board reporting on defense-critical infrastructure cyber threat and mitigations, creating an oversight channel that may floor the place cost-imposition would chunk the toughest.

Part 1093’s critical-infrastructure tabletop workouts name out power, water, visitors management, and incident response, the civilian dependencies that underpin protection missions. These venues are appropriate for piloting proof-of-work-priced entry towards conventional charge limits, particularly at public-facing or cross-domain choke factors the place bots have a value benefit.

For practitioners, Part 1543 creates a near-term modeling agenda that blends doctrine and engineering.

One line of effort is to quantify attacker value per motion throughout authentication, administration, and repair endpoints when adaptive proof-of-work is utilized.

One other is to measure the half-life of adversary persistence after public burns and synchronized sanctions or export controls, utilizing dwell-time home windows as a proxy for raised working prices. A 3rd is to trace doctrinal traction by counting official makes use of of ‘impose prices’ or ‘cost-imposition’ in DoD and CISA outputs as soon as the research is underway.

MetricWhat it capturesThe place to useSoftWar tie-in
Attacker Price per 1,000 gated actionsIncremental value to execute login/API/admin actions underneath proof-of-workDistant admin, password resets, bulk API, anomalous RPCCosts abuse so automation loses value benefit
Persistence half-life after public burnTime from advisory to eviction and retoolingVirtualization management planes, id suppliers, OT gatewaysMeasures capital and time prices imposed on adversary
Coverage traction indexFrequency of cost-imposition language in official outputsDoD, CISA, ONCD issuances and pilotsIndicators institutional adoption of value design

The most typical pushback towards proof-of-work is the power overhead. The programs contemplated right here are usually not international puzzles plastered throughout each endpoint.

The design house is right-sizing and adapting proof-of-work at essential choke factors, the place tipping attacker ROI adverse yields outsized protection advantages, which is strictly what a cost-imposition mandate asks the Pentagon to think about.

Fee limits and CAPTCHAs exist already; nonetheless, they don’t pressure non-spoofable useful resource burn on the attacker. SoftWar’s premise is that priced actions beat friction, changing low cost spam and brute pressure into measurable expense.

The AuthLN sample affords one blueprint for a way such pricing can match into current authentication stacks with out reinventing upstream structure, aligning with Part 1543’s encouragement to combine with different companies, trade, and academia.

Situations to observe over the 2026 horizon move immediately from the statutory tasking.

A pilot that attaches dynamic proof-of-work stamps to high-risk actions inside defense-critical infrastructure dependencies would check financial DDoS mitigation and abuse-resistant administration.

A public burn-and-sanctions playbook for one more BRICKSTORM-like disclosure would goal to pressure the adversary to retool whereas synchronizing diplomatic and financial devices. Coalition norms that use cost-imposition language might formalize a persistent financial friction towards spam and mass automation at public-sector endpoints, complementing episodic takedowns with sustained deterrence.

Every transfer may be tracked towards the metrics above and reported by the MACB channel set by Part 1545.

Part 1543 states that the Secretary of Struggle (previously Protection) shall conduct a research on using navy capabilities to extend the prices to adversaries of focusing on defense-critical infrastructure in our on-line world.

It defines imposed prices as actions that produce financial, diplomatic, informational, or navy penalties adequate to alter adversary habits. The report is due Dec. 1, 2026.

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