U.S. BTC Reserves Nearly Double to $36B After Record-Breaking DOJ Seizure

The United States federal government now holds more than $36 billion worth of bitcoin. Federal prosecutors announced today the seizure of approximately 127k BTC (~$14B) in connection with a massive international fraud and trafficking case.

What’s the Scoop?

• Largest DOJ Forfeiture Ever: The U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s National Security Division announced the seizure of 127,271 BTC — roughly $14B — from a criminal network led by former Chinese national Chen Zhi. The move marks the largest forfeiture action in DOJ history.
• Global Criminal Network: Prosecutors allege Zhi orchestrated a vast Cambodia-based "pig butchering" crypto scam empire, known as the Prince Group Transnational Criminal Organization, which defrauded victims worldwide while using forced labor to operate large-scale online investment and romance scams.
• Criminal Charges: Zhi faces wire fraud and money laundering conspiracy charges in the Eastern District of New York. In parallel, the U.S. Treasury’s OFAC and FinCEN, working with the U.K.’s Foreign, Commonwealth, and Development Office, imposed sanctions on 146 individuals and entities linked to the organization.
• Human Trafficking Allegations: The indictment accuses Zhi’s group of managing “industrial-scale trafficking, torture, and extortion,” with enslaved workers forced to conduct online fraud schemes across at least ten compounds in Cambodia.
• U.S. Bitcoin Reserves Surge: Before the forfeiture, the government held around 197,000 BTC worth $22B. The new seizure pushes total holdings to approximately 324,000 BTC and cements the U.S. as one of the largest single bitcoin holders globally.
• Private Key Failure: Crypto sleuth ZachXBT noted that crypto wallet addresses listed in the US government's seizure complaint were previously disclosed in a Milky Sad report as having vulnerable private keys.