TLDR
- US authorities have indicted Chen Zhi, founder of Cambodia-based Prince Group, for running pig butchering scams and money laundering operations
- The Justice Department seized 127,271 Bitcoin worth approximately $14.4 billion, marking the largest crypto seizure in US history
- If convicted, the forfeited Bitcoin would be added to the US strategic reserve, increasing it from 198,000 to 325,000 BTC
- Prince Group operated forced labor compounds in Cambodia where trafficked workers executed cryptocurrency scams under threat of violence
- Treasury Department sanctioned Prince Group as a transnational criminal organization and severed Huione Group from the US financial system
The US Justice Department unsealed a criminal indictment against Chen Zhi on Tuesday that could add $14 billion in Bitcoin to the country’s strategic cryptocurrency reserves. Zhi is the founder and chairman of Prince Group, a Cambodia-based company accused of orchestrating pig butchering schemes and other cryptocurrency fraud operations.
JUST IN: 🇺🇸 US Government seizes $15 billion worth of Bitcoin from 'pig butchering' scam based in Cambodia.
— Watcher.Guru (@WatcherGuru) October 14, 2025
The DOJ seized 127,271 Bitcoin as part of the case. This represents the largest cryptocurrency seizure in US government history. The Bitcoin is currently in US government custody and will be subject to forfeiture proceedings if Zhi is convicted.
Zhi faces charges of wire fraud conspiracy and money laundering conspiracy in the US District Court for the Eastern District of New York. If found guilty, he could face up to 40 years in prison. Zhi remains at large as of the indictment announcement.
The seized Bitcoin originated from LuBian, a mining operation that worked out of China and Iran. LuBian was once the sixth-largest crypto mining operation in the world before shutting down in 2020 after the assets went missing. According to blockchain analytics firm Elliptic, it remains unclear how the Bitcoin came into US custody or who took the assets from LuBian.
Criminal Operations and Trafficking
Prince Group operated compounds in Cambodia where hundreds of trafficked workers were forced to execute scams. These facilities were secured with barbed wire and workers faced threats of violence. The operation targeted victims primarily in the United States through pig butchering schemes, where scammers pose as romantic partners to extract cryptocurrency from victims.
Attorney General Pamela Bondi called Tuesday’s action one of the most important strikes against global human trafficking and cyber-enabled financial fraud. The Treasury Department coordinated its efforts by sanctioning Prince Group as a transnational criminal organization. This designation blocks the company’s financial activity and prevents US entities from doing business with it.
The Treasury also severed Huoine Group, another Cambodian conglomerate, from the US financial system entirely. Treasury officials said Huione had been laundering proceeds from cryptocurrency scams. This represents one of the most severe actions available in the US international financial toolkit.
Impact on US Bitcoin Reserves
The forfeiture could change the size of America’s strategic Bitcoin reserve. President Donald Trump established national Bitcoin and crypto reserves through executive order in March. The current stockpile includes approximately 198,000 Bitcoin worth over $22 billion.
Adding the seized Bitcoin would bring the total to about 325,000 BTC. At current prices, this would equal approximately $36 billion. The reserve is meant to hold Bitcoin seized by the US government through civil forfeiture and criminal cases.
Treasury Secretary Scott Bessent stated that transnational fraud has cost American citizens billions of dollars. He noted that life savings have been wiped out in minutes through these schemes. Authorities allege that Zhi and his executives used proceeds from the schemes to purchase luxury items including watches, yachts, private jets, vacation homes and artwork including a Picasso painting.
Bitcoin was trading at $112,738 at the time of the announcement.
