Movement of Dormant Bitcoin Sparks Speculation After DOJ Targets Prince Holding Group
A wallet linked to Chinese Bitcoin mining operation LuBian has transferred roughly $1.3 billion in Bitcoin, just a day after the U.S. Department of Justice (DOJ) announced a major $15 billion crypto forfeiture case tied to an alleged international laundering network.
Blockchain analytics firm Lookonchain first detected the activity on Wednesday, reporting that a long-dormant wallet associated with LuBian moved 9,757 BTC, worth about $1.1 billion, into new addresses. Hours later, Arkham Intelligence confirmed an additional transfer of 2,129 BTC — approximately $238 million — bringing the total movement to 11,886 BTC.
The transaction marks the first major on-chain movement from the address in over three years. Arkham’s August 2025 report previously identified that LuBian was hacked in 2020 for 127,426 BTC, worth about $3.5 billion at the time, and noted that 11,886 BTC had been moved to recovery wallets, an amount that precisely matches this week’s transfer.
“This movement could suggest either internal fund restructuring or a reaction to ongoing law enforcement actions,” said an analyst from Lookonchain. “The timing is notable, given the DOJ’s recent forfeiture announcement.”
DOJ Links Prince Holding Group to Crypto Laundering Network
The DOJ’s unsealed indictment targeted Prince Holding Group, a Cambodia-based conglomerate accused of orchestrating large-scale crypto-related fraud under its founder Chen Zhi. Prosecutors allege that $14.4 billion worth of Bitcoin tied to the scheme has already been seized and is now under U.S. government custody.
The complaint also connects Zhi’s network to LuBian, Warp Data in Laos, and its Texas-based subsidiary, which the DOJ says were used to launder illicit funds through crypto mining and generate “clean Bitcoin dissociated from criminal proceeds.”
Largest Potential Bitcoin Forfeiture in U.S. History
If approved by the courts, the case could mark one of the largest digital asset seizures ever conducted by the United States. The recovered Bitcoin may be absorbed into the federal strategic Bitcoin reserve, established under a March executive order signed by President Donald Trump.
“This event underscores the growing convergence between blockchain transparency and global financial enforcement,” said blockchain law expert Michael Choi.
The LuBian-linked transfer, coinciding with the DOJ’s multi-billion-dollar case, highlights how on-chain activity continues to mirror the evolving regulatory and enforcement landscape surrounding digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.