A US federal court has revealed a criminal indictment concerning a significant cryptocurrency fraud that could see the government’s Bitcoin reserves expanding by up to $14 billion. The US Justice Department announced that they have initiated a forfeiture action regarding 127,271 Bitcoin (BTC), valued at approximately $14.4 billion at the time of this report. This Bitcoin is linked to charges against Chen Zhi, the founder of a Cambodian firm alleged to have masterminded “pig butchering” investment scams.

Civil forfeiture complaint against 127,271 Bitcoin. Source: US District Court, Eastern District of New York

The Office of Foreign Assets Control at the US Treasury has already imposed sanctions on Zhi’s company, the Prince Holding Group, coinciding with the unsealing of the indictment. If Zhi is found guilty, the forfeiture will add to the US’s strategic Bitcoin holdings, with potential additions making a total of approximately 325,000 BTC or $36 billion at current prices.

However, it’s uncertain if Trump’s executive order allows the government to acquire Bitcoin through asset sales. Various advisers have suggested alternative strategies for bolstering the reserves, including converting gold to Bitcoin, as the US holds over 8,100 metric tons of gold.

At the moment, Bitcoin’s price is listed at $112,738 according to Nansen.