The U.S. government is moving to seize approximately 127,271 Bitcoin, worth around $14 billion, linked to a vast criminal network orchestrating "pig butchering" crypto scams. This action represents the largest forfeiture in the Department of Justice's (DOJ) history and will significantly increase the U.S. government's cryptocurrency reserves.
The alleged mastermind behind this operation is Chen Zhi, a former Chinese national who led the Prince Group Transnational Criminal Organization based in Cambodia. Prosecutors claim Zhi's organization defrauded victims worldwide through online investment and romance scams, while also engaging in human trafficking and forced labor. Enslaved workers were allegedly forced to conduct these online fraud schemes across at least ten compounds in Cambodia.
The indictment accuses Zhi's group of managing "industrial-scale trafficking, torture, and extortion". The network lured victims into transferring funds, which were then converted into Bitcoin and other digital assets. These funds were allegedly routed through major exchanges, including Binance, before being funneled into cold storage wallets controlled by Zhi's associates.
According to the FBI Internet Crime Complaint Center’s 2024 Internet Crime Report, cryptocurrency investment fraud caused more than $5.8 billion in reported losses in 2024 alone. The Justice Department filed a civil forfeiture complaint in the U.S. District Court for the District of Columbia against more than $225.3 million in cryptocurrency. Law enforcement used blockchain analysis and other investigative techniques to determine that the cryptocurrency is connected to the theft and laundering of funds from victims of cryptocurrency investment fraud schemes.
This latest seizure would push the U.S. government's total Bitcoin holdings to approximately 324,000 BTC, solidifying its position as one of the largest single holders of Bitcoin globally. Prior to this, the government held around 197,000 BTC, worth approximately $22 billion.
In parallel with the seizure, the U.S. Treasury's Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN), in collaboration with the U.K.'s Foreign, Commonwealth, and Development Office, have imposed sanctions on 146 individuals and entities linked to the organization.
Authorities traced cryptocurrency flows through major exchanges into cold storage wallets controlled by Zhi's associates. The U.S. government now holds a significant percentage of Bitcoin's total supply. A previous Executive Order in 2025 established a framework for integrating future crypto seizures into a national Bitcoin Strategic Reserve.
The U.S. Attorney General stated that by dismantling a criminal empire built on forced labor and deception, the United States is sending a clear message that it will use every tool to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit.
Members of the public who believe they are victims of cryptocurrency investment fraud and other cyber-enabled crime should contact the FBI Internet Crime Complaint Center.
