Key highlights:
- The US has seized 127,271 BTC, valued at $14.3 billion, from a transnational crypto scam led by a former Chinese national.
- This is the largest cryptocurrency forfeiture in the Department of Justice’s history, bringing total US Bitcoin reserves to over $36 billion.
- The scam involved forced labor and “pig butchering” romance-investment frauds, operated out of compounds in Cambodia.
In the largest cryptocurrency forfeiture action in its history, the United States Department of Justice (DoJ) has seized approximately 127,271 Bitcoin, worth around $14.3 billion, tied to a massive transnational scam operation led by former Chinese national Chen Zhi. The move boosts the US government’s Bitcoin holdings to over 324,000 BTC, currently valued at more than $36 billion.
The civil forfeiture complaint, filed by the US Attorney’s Office for the Eastern District of New York alongside the National Security Division, targets Zhi’s role as the head of Prince Group, a Cambodia-based conglomerate alleged to be a front for one of Asia’s largest criminal networks.
Update: DOJ official confirms they have the funds, says cannot comment on how they got them
Has to be an interesting story on how that came to be
— db (@tier10k) October 14, 2025
A global scam network masked as a multinational firm
Chen Zhi, who has renounced his Chinese citizenship, is accused of directing a network of scam compounds in Cambodia through Prince Group. While the conglomerate publicly positioned itself in real estate and financial services, US authorities allege it secretly trafficked thousands of individuals into forced labor for cryptocurrency investment scams, primarily targeting victims in the United States and other allied countries.
Victims were reportedly lured with promises of high-paying tech and administrative jobs, only to be imprisoned and coerced into conducting elaborate online scams known as “pig butchering.” This form of fraud involves cultivating trust and emotional relationships with victims over time before coercing them into fake crypto investment platforms operated by the scammers.
Forced labor, fraud, and human rights abuses
According to US officials, Zhi’s scam compounds engaged in widespread human rights violations, including torture, slavery, and extortion. The Treasury Department stated that the criminal network used over 100 shell companies to launder the stolen funds across borders. The operation is believed to have stolen billions of dollars, contributing to the rise of pig butchering scams, which cost victims over $4 billion in 2024 alone, a 40% increase from the previous year.
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), working in tandem with UK authorities, imposed sweeping sanctions on 146 entities connected to the Prince Group. The actions underscore the US government’s intensified efforts to combat crypto-fueled transnational crime.
Seizure marks a strategic milestone
The forfeiture of 127,271 BTC, now under the custody of US authorities, marks a significant milestone in crypto-related law enforcement. This single seizure accounts for a substantial portion of the government’s growing crypto reserves, which stood at approximately 197,354 BTC prior to this action.
U.S. government crypto reserves prior to the freshly announced seizure of 127,271 BTC. Source: Arkham
Secretary of the Treasury Scott Bessent emphasized the urgency of addressing the threat posed by these scams, stating:
“The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes. Treasury is taking action to protect Americans by cracking down on foreign scammers.”
Source:: US Government Seizes $14 Billion in Bitcoin Linked to Massive Crypto Scam