The US Seized a Chinese Billionaire’s $14 Billion Bitcoin.

Recently, a noteworthy development has occurred in the cryptocurrency markets. The United States seized 127,271 Bitcoins (approximately 14 billion dollars) as part of an investigation into a Cambodian-based cryptocurrency fraud network run by Chinese businessman Chen Zhi. This operation is recorded as the largest cryptocurrency seizure in U.S. history, and the statements made reveal the scale of the fraud.

According to the government's announcement, it has been revealed that Chen Zhi established a global fraud network using methods referred to as “pig butchering.” The prosecution emphasized that the Prince Group company made billions of dollars by forcibly laboring hundreds of people in surrounded camps in Cambodia through fake investment platforms. U.S. Attorney Pamela Bondi described this operation as one of the most significant steps taken in the fight against human trafficking and digital fraud.

Additionally, the investigation file included information that Chen Zhi and his team lived a luxurious life with the income obtained from the fraud, even purchasing a Picasso painting. On the same day, the U.S. Department of the Treasury also identified Prince Group as a transnational criminal organization and imposed financial sanctions. With these sanctions, it became illegal for U.S. citizens or institutions to conduct business with this group. Treasury Secretary Scott Bessent stated, “Cross-border frauds cost Americans billions of dollars.”

With this development, the total Bitcoin reserve of the U.S. government has risen to 36 billion dollars. Reports from the analytical firm Elliptic suggest that the seized Bitcoins may be linked to funds stolen from a China-Iran based Bitcoin mining company known as LuBian, previously owned by Chen Zhi. However, there is no clear information on how these Bitcoin assets ended up in the hands of the U.S. Experts believe that these assets may be transferred to the strategic Bitcoin reserve planned by the U.S. government.

This historic operation has been recorded as the largest step taken by the U.S. against cryptocurrency fraud and crime networks based on forced labor. Investors should closely monitor developments in the cryptocurrency market and exercise caution against such frauds.