TLDR
- DOJ seized 127,271 BTC worth $15B from an alleged crypto fraud scheme.
- US Bitcoin holdings could rise to 325,292 BTC if the court approves.
- The case marks the largest Bitcoin forfeiture action in DOJ history.
- The move supports Trump’s plan to form a Strategic Bitcoin Reserve.
Washington, D.C., October 14, 2025 — The U.S. Department of Justice has filed a civil forfeiture order seeking ownership of nearly 127,271 Bitcoin, valued at around $15 billion. The seized cryptocurrency, linked to an alleged global fraud scheme, could soon strengthen the United States’ growing Bitcoin reserves as part of its move toward creating a Strategic BTC reserve.
Largest Bitcoin Forfeiture in DOJ History
The Department of Justice confirmed in a press statement that it has initiated a forfeiture complaint involving Bitcoin assets seized from Chen Zhi, also known as “Vincent,” founder and chairman of Prince Holding Group. Prosecutors allege that the funds are tied to a large-scale “pig butchering” scam that defrauded thousands of victims through deceptive investment platforms.
The DOJ stated that the seized Bitcoin represents “proceeds and instrumentalities” of criminal activity and is currently held in government custody. Officials also described this as the largest forfeiture action in the department’s history. Chen faces charges of wire fraud conspiracy and money laundering conspiracy in connection with the case.
If the court approves the forfeiture request, the Bitcoin will officially become part of U.S. government reserves. The action marks a major step toward expanding federal control over digital assets obtained from criminal operations.
Potential Growth in U.S. Bitcoin Holdings
According to BitcoinTreasuries data, the United States currently holds about 198,021 BTC, mostly acquired through law enforcement seizures. If the $15 billion forfeiture is approved, the government’s total Bitcoin holdings could rise to approximately 325,292 BTC, worth about $36 billion at current prices.
In August, U.S. Treasury Secretary Scott Bessent confirmed that the government’s Bitcoin reserves were valued at nearly $20 billion. This update followed months of speculation about whether the United States had liquidated a large portion of its Bitcoin assets. The new forfeiture, once completed, could make the United States the clear global leader in government Bitcoin ownership, ahead of China’s estimated 190,000 BTC.
Strategic Bitcoin Reserve Initiative
The potential addition of $15 billion in Bitcoin aligns with ongoing efforts to formalize a Strategic Bitcoin Reserve. President Donald Trump previously signed an executive order proposing that confiscated digital assets be directed into a national Bitcoin reserve to back federal debt and financial stability efforts.
Senator Cynthia Lummis, who introduced the “BUTCOIN Act” to codify the executive order, described the initiative as a long-term safeguard for the U.S. economy. “Bitcoin’s uniqueness makes it the wisest thing to do to shore up the dollar,” Lummis said. She also emphasized that the reserve could serve as a verifiable and transparent store of value, as its holdings could be audited publicly at any time.
Public and Market Reactions
The proposal for a national Bitcoin reserve has drawn attention from both policymakers and industry leaders. Tesla CEO Elon Musk previously commented that Bitcoin is “based on energy,” contrasting it with fiat currency that can be printed without limits. Lummis echoed this sentiment, adding that Bitcoin’s finite supply makes it suitable as a long-term reserve asset.
Market analysts noted that the DOJ’s forfeiture move could affect perceptions of government involvement in digital assets. With Bitcoin trading around $112,000, the new reserves would place the United States far ahead of other nations in terms of cryptocurrency holdings.
The case remains under court review, and the final transfer of the seized Bitcoin will depend on the judicial outcome of the forfeiture proceedings.
