Largest Bitcoin confiscation in US history linked to global crypto scam network
The United States government’s Bitcoin holdings have soared to over $36 billion, following a record-breaking Department of Justice (DOJ) forfeiture of nearly 127,271 BTC, valued at roughly $14 billion.
The U.S. Attorney’s Office for the Eastern District of New York, alongside the DOJ’s National Security Division, announced the forfeiture on Tuesday — calling it the largest crypto seizure in the Department’s history.
“The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes,” said Treasury Secretary Scott Bessent, vowing continued coordination with international partners to protect U.S. citizens from digital financial crimes.
Crypto scam network tied to former Chinese national
The DOJ’s civil forfeiture complaint targets former Chinese national Chen Zhi, who has been indicted on wire fraud and money laundering charges. Zhi is accused of orchestrating a vast crypto investment scam network operating out of Cambodia, allegedly using forced labor to steal billions of dollars from victims worldwide.
The Treasury Department’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN) also imposed sanctions on 146 individuals and entities tied to Zhi’s alleged Prince Group Transnational Criminal Organization.
Authorities claim the network engaged in multiple crimes — from investment scams and online blackmail to industrial-scale human trafficking, extortion, and illegal gambling operations.
Before the record seizure, the U.S. government held around 197,354 BTC, valued at approximately $22 billion. The latest confiscation pushes total government reserves above $36 billion, making the U.S. one of the largest institutional holders of Bitcoin globally.
The action marks another milestone in America’s growing control over seized crypto assets, following several large-scale law enforcement operations in recent years.
Analysts say the move highlights how digital asset enforcement is becoming central to U.S. national security and financial crime prevention, signaling a new era of onchain law enforcement transparency.
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.