US Government makes historic seizure of Bitcoin for about USD $14 billion
By Hannah Perez
The US government’s Bitcoin holdings inflated considerably after it seized nearly 128,000 BTC in a cryptocurrency scam case in Cambodia. The US now owns
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- The US Government adds almost 128,000 BTC to its strategic reserve.
- The DOJ announced a historic seizure of bitcoins valued at about $14 billion.
- It was part of an investigation into organized pig butchering fraud in Cambodia.
- The bitcoins were confiscated from Chinese businessman Chen Zhi, accused of fraud.
- The United States now holds an estimated over 324,000 BTC.
🚨USA seizes 127,271 BTC worth USD $14 billion🚨
Historic DOJ action in organized fraud case in Cambodia.
The bitcoins were confiscated from businessman Chen Zhi, accused of fraud and money laundering.
The US now holds more than 324,000 BTC,… pic.twitter.com/1ig4erPwNx
— Diario฿itcoin (@DiarioBitcoin) October 14, 2025
The United States Department of Justice (DOJ) announced this Tuesday the seizure of approximately 127,271 bitcoinsin what he has described as the largest confiscation action in the history of the institution.
The bitcoins (BTC), currently valued at around USD $14,000 at market prices, is part of an investigation into a vast cryptocurrency scam network operated from Cambodia, which involved forced labor and money laundering.
The United States Attorney’s Office for the Eastern District of New York and the DOJ’s National Security Division said in an official statement that they filed a civil forfeiture complaint against Chen Zhi, also known as “Vincent,” a 37-year-old businessman and founder of Prince Holding Groupa multinational conglomerate based in Cambodia.
Chen Zhi, who renounced his Chinese citizenship, faces charges of conspiracy to commit wire fraud and money laundering, with a possible maximum penalty of 40 years in prison if convicted, authorities said.
Bitcoins confiscated in pig butchering scams
According to the official DOJ statement, since approximately 2015, Chen Zhi and senior executives of the Prince Group They ran one of the largest transnational criminal organizations in Asia, operating at least ten scam complexes in Cambodia.
These centers, described as “forced labor compounds”trafficked hundreds of workers forced to execute fraudulent schemes based on social engineering, known as ““pig butchering” or pig slaughter, in which scammers contact victims via messaging or social media, gain their trust, and convince them to invest in fake cryptocurrencies. Based on this model, they stole funds worth billions of dollars globally, including victims in the United States.
The complexes operated like prisons, with high walls, barbed wire and massive dormitories, where workers were subjected to threats of violence, including beatings and torture, according to authorities.
Chen Zhi was directly involved in management, maintaining profit records and communicating about the use of violence against those who “They caused problems.”. The stolen funds were laundered through sophisticated cryptocurrency techniques, such as “spraying” and “funneling“, and were channeled into the group’s legal businesses, including online gambling and crypto mining.
Part of the profits financed luxuries such as watches, yachts, private jets and works of art, including a Picasso painting acquired at an auction in New York, prosecutors added in the statement.
Sanctions against related entities
In parallel, the US Department of the Treasury, through the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), imposed sanctions on 146 targets related to Prince Group, designated as a transnational criminal organization. The United Kingdom also imposed similar measures against related entities.
“The rapid rise of cross-border fraud has cost American citizens billions of dollars, with life savings wiped out in minutes. Treasury is taking steps to protect Americans by cracking down on foreign scammers“stated US Treasury Secretary Scott Bessent.
The investigation involved the FBI, DEA and the US State Department, with international assistance from the United Kingdom and the Isle of Man. Chen Zhi remains a fugitive, and authorities are urging the public to report information about his whereabouts.
US Bitcoin Reserves Inflate
With this seizure, the reserves of bitcoins of the US government now exceeds USD $36 billion, adding more than 324,625 BTC in totalaccording to calculations based on data provided by Arkham Intelligence.
The bitcoins confiscated were in unhosted cryptocurrency wallets, the private keys of which were in Chen Zhi’s possession, and are now in government custody.
Before the seizure, US government wallets held approximately 197,354 BTC valued at about $23 billion. These funds make up the national strategic reserve of Bitcoinordered by President Donald Trump through executive action this year. In August, Bessent clarified that the United States would not purchase additional Bitcoin for the strategic reserve.
Article written with the help of AI, edited by DailyBitcoin
Image from Depositphotos, edited in Canva
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