US Government Moves to Seize $14.2 Billion in Bitcoin Linked to Chen Zhi, Alleged Trafficker

The U.S. Department of Justice (DOJ) has initiated a civil forfeiture complaint aimed at seizing approximately 127,000 BTC, valued around $14.2 billion.

The Bitcoin in question is linked to Chen Zhi, a businessman based in Cambodia and the chairman of Prince Group.

Record Bitcoin Seizure of $14 Billion

Arkham shared via X that Zhi orchestrated extensive human-trafficking and scamming operations throughout Asia. These scams often involve victims being lured into fraudulent online relationships and persuaded to invest in fake cryptocurrency schemes. After the deposits are made, the scammers vanish with the victims’ funds.

The investment scams tied to Prince Group have caused billions in losses for victims globally, with some in New York. Zhi is currently evading law enforcement, facing accusations of conspiracy to commit wire fraud and money laundering. Prosecutors assert that the illicit gains funded extravagant purchases such as luxury yachts, private jets, artwork, and vacation properties.

Conversely, LuBian was one of the largest Chinese mining pools operating in both China and Iran. It was also the site of the largest crypto heist in 2020 when hackers removed approximately $3.5 billion worth of Bitcoin.

The DOJ’s filing claims that LuBian was allegedly financed and operated using revenues from illegal activities including scams and human trafficking.

The blockchain analytics platform has verified that the previously stolen digital assets are now in the possession of the U.S. government, marking a significant increase in U.S. crypto reserves since their establishment in March under former President Donald Trump’s executive order.

DOJ Filing Raises Questions About Seized Bitcoin

The DOJ filing leaves unclear how the Bitcoin entered U.S. authorities’ hands, raising speculation over whether the keys were hacked or voluntarily handed over. On-chain investigator ZachXBT indicated that the wallet addresses identified in the seizure had been flagged earlier for having compromised private keys.

Furthermore, the document states that the cryptocurrency was transferred again between June and July 2024 and mentions a finance staff member who allegedly absconded with funds, a potential link to the Bitcoin transfers during that period.