Key Takeaways
What’s happening?
The U.S. Department of Justice has moved to seize 127,271 BTC linked to a massive international pig-butchering scam.
Why does it matter?
If successful, the seizure would boost the U.S. government’s Bitcoin holdings by 64%.
The U.S. Department of Justice [DOJ] has filed a landmark forfeiture complaint to seize 127,271 Bitcoin [around $12 billion]. The asset is linked to a transnational “pig-butchering” scam allegedly operated by Chen Zhi, chairman of Cambodia’s Prince Group.
Filed in the Eastern District of New York, the case is described as the largest crypto forfeiture in DOJ history. It targets funds laundered through unhosted wallets and Huione-connected payment rails.
Treasury, FinCEN, and the U.K. join coordinated crackdown
The DOJ action coincides with a sweeping move by the U.S. Treasury Department, FinCEN, and the United Kingdom. They jointly sanctioned Huione Group and related entities under new transnational crime measures.
FinCEN’s final rule designates Huione as a foreign financial institution of primary money-laundering concern under Section 311 of the USA PATRIOT Act. This effectively cuts it off from the U.S. banking system.
The U.K. Treasury’s Office of Financial Sanctions Implementation (OFSI) mirrored those sanctions, blocking British entities from conducting business with the same network.
This was after investigators traced billions of dollars in scam-related crypto transactions through the network, many of which financed forced labor compounds across Southeast Asia.
If forfeited, U.S. Bitcoin holdings would jump 64%
According to Arkham Intelligence, the U.S. government currently holds 197,354 BTC, worth roughly $22 billion. Also, it holds smaller reserves of 351 million USDT and 60,695 ETH.
Source: Arkham Intelligence
Should the DOJ’s forfeiture succeed, the government’s Bitcoin holdings would rise to approximately 324,600 BTC, representing a 64% increase and a market value of nearly $36 billion at today’s price of $111,600 per BTC.
That addition would make Washington one of the world’s largest single Bitcoin holders, only behind Strategy, but more than Tesla and Marathon combined.
A growing “Strategic Bitcoin Reserve”
The potential windfall could boost the U.S. Strategic Bitcoin Reserve—an accumulation built through years of seizures from the Silk Road, Bitfinex, and other cybercrime cases.
While federal agencies historically auctioned most confiscated coins, recent behavior suggests a more calculated approach. The government now holds larger balances for extended periods, rather than immediately liquidating them.
This dual strategy, aggressive law-enforcement seizures paired with implicit BTC custody, positions the United States as a quiet whale in the global crypto market.
If confirmed, the Chen Zhi forfeiture would mark a milestone in financial crime enforcement.