The US Department of Justice has announced the largest cryptocurrency seizure in the agency’s history. American investigators have seized 127,271 bitcoins worth about $15 billion in a massive fraud case. Business Insider reports.
The charges were brought against a citizen, Chen Zhi, who is suspected of money laundering and wire fraud.
According to the US Department of Justice, the seized assets are related to a pig butchering fraud scheme operating in Cambodia. This type of fraud involves criminals first establishing a trusting relationship with the victim, then forcing them to transfer money or cryptocurrency and disappearing with the funds. According to a 2024 study, such schemes have brought fraudsters more than $75 billion.
The investigation found that Zhi stored bitcoins in non-custodial wallets to which he had personal access keys. The Ministry of Justice said in a statement that he headed a large-scale cyber organization, the Prince Group. This structure kept “workers” in prison conditions in special complexes where they were forced to engage in online fraud on an industrial scale.
Currently, about $15–20 billion in state-controlled bitcoins has already been officially seized in the United States. These funds became the basis for the creation of the Strategic Bitcoin Reserve and the Digital Active Fund in accordance with the presidential decree of March 2025.
