US DOJ confiscates 127,000 Bitcoin, boosts government holdings above $36 billion
- The US DOJ confiscated about 127,271 BTC from Prince Holding Group founder Chen Zhi.
- The seized Bitcoins, worth $15 billion, are proceeds from the firm's alleged fraudulent schemes, including pig butchering scams.
- The US government now holds 325,292 BTC, worth $36 billion.
The US Department of Justice (DOJ) seized 127,271 Bitcoin (BTC) from a Cambodian-based conglomerate, Prince Holding Group, and its founder, Chen Zhi, marking one of the largest forfeitures in crypto history.
US DOJ seizes 127,000 BTC in record-breaking forfeiture case
The US Department of Justice has seized more than 127,000 Bitcoin linked to a cryptocurrency fraud case involving Prince Holding Group and its founder Chen Zhi, according to a statement on Tuesday.
The US Attorney's Office for the Eastern District of New York, alongside the Department of Justice's National Security Division, has filed a civil forfeiture complaint targeting roughly 127,271 Bitcoin, valued at about $15 billion.
The digital assets, tied to fraud and money laundering charges, were previously held in unhosted wallets controlled by the defendant, whose private keys have since been recovered by authorities.
"Today's action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud," said Attorney General Pam Bondi.
The seized funds are now in US government custody, marking the largest forfeiture action in the Justice Department's history.
The agency added that it recovered individuals who were subjected to forced labor inside the compounds, where they were coerced into running cryptocurrency investment fraud operations known as "pig butchering" scams.
Zhi, who is allegedly on the run, is accused of orchestrating schemes that defrauded victims in the United States and around the world of billions of dollars.
"By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit," Bondi added.
The seized Bitcoin is expected to be incorporated into the US government's crypto reserve, established in March after President Donald Trump signed an executive order. The reserve consists of confiscated Bitcoin, with federal officials emphasizing that the government will not purchase BTC, but only hold those obtained through legal seizures.
The reserve now holds 325,292 BTC worth about $36 billion following the latest forfeiture, according to data from Bitcoin Treasuries.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
