TLDR
- U.S. government seized $14B in Bitcoin linked to global fraud network led by Chen Zhi.
- The DOJ’s largest-ever crypto seizure targets Cambodia’s Prince Group for human trafficking.
- Seized Bitcoin was routed through exchanges and stored in cold wallets controlled by Zhi.
- U.S. Treasury sanctions Cambodian companies tied to crypto scams and money laundering.
In what is considered one of the largest cryptocurrency seizures in U.S. history, the government has confiscated $14 billion worth of Bitcoin linked to a global crime network led by Cambodian businessman Chen Zhi. The U.S. Department of Justice (DOJ) recently filed a civil forfeiture complaint against Zhi and his company, Prince Group, which is accused of operating fraudulent schemes involving cryptocurrency and human trafficking. The move marks a major escalation in efforts to combat international fraud.
U.S. Authorities Target Prince Group’s Global Network
The U.S. authorities have charged Chen Zhi, founder and chairman of Prince Group, for allegedly running one of the world’s largest “pig butchering” fraud operations. These scams, which combine fake investment schemes with romantic fraud, are designed to trick victims into sending money, often in the form of Bitcoin. Once the funds were obtained, they were converted into cryptocurrencies and transferred to wallets controlled by Zhi’s network.
The complaint, filed in the Eastern District of New York, accuses Prince Group and its associates of using forced labor to operate call centers in Southeast Asia. These centers deceived victims into investing in non-existent cryptocurrency opportunities.
The DOJ claims that this illegal operation not only defrauded individuals but also involved significant human trafficking, as workers were reportedly coerced into performing fraudulent activities under threat of violence.
U.S. Government Seizes Over $14 Billion in Bitcoin
The civil forfeiture filing focuses on the seizure of 127,271 Bitcoin, which is currently valued at approximately $14 billion. The Bitcoin, identified as proceeds from the scam, was funneled through major exchanges like Binance before being stored in cold wallets controlled by Zhi’s associates. U.S. authorities noted that this seizure marks their largest-ever crypto confiscation.
In response to this operation, U.S. Attorney General Pam Bondi emphasized the government’s commitment to dismantling criminal networks and recovering assets. She said, “By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims and bring to justice those who exploit the vulnerable for profit.”
U.S. Strategy for Seized Cryptocurrency Holdings
Alongside the enforcement against Prince Group, the U.S. government continues to refine its approach to seized cryptocurrencies. Recent actions suggest that the government is moving away from auctioning off seized Bitcoin in favor of holding these assets in a strategic reserve. This shift is part of the broader efforts to establish a “Bitcoin Strategic Reserve,” a framework designed by U.S. President Trump through an executive order in March 2025.
The reserve is intended to integrate future crypto seizures into national security measures, securing the value of the digital assets as part of the nation’s broader economic strategy. On October 14, 2025, blockchain analytics firm Arkham reported that the U.S. government transferred 668 Bitcoin, valued at $74.8 million, to a new wallet. This transfer suggests that U.S. authorities are actively managing and holding these digital assets.
Sanctions Against Prince Group and Huione Group
In addition to the seizure of Bitcoin, the U.S. Treasury Department has sanctioned Prince Group, designating it as a transnational criminal organization. This action blocks the company’s access to the U.S. financial system, effectively cutting off its ability to do business with American entities. The U.S. government also imposed sanctions on Huione Group, a Cambodian company allegedly involved in laundering proceeds from the scam operations.
The coordinated actions by the DOJ and Treasury Department reflect a growing focus on cracking down on crypto-fueled criminal enterprises in Southeast Asia. These enterprises have been linked to widespread scams that have cost victims billions of dollars. Secretary of the Treasury Scott Bessent stated, “The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes.”
The crackdown against Prince Group and its network serves as a warning to other illicit actors in the digital asset space, signaling that the U.S. government is increasingly prepared to use its resources to combat international fraud and human trafficking linked to cryptocurrencies.
