Picasso

Bitcoin

Reserve

Billion

<h3 class="wp-block-heading" id="h-key-insights">Key Insights:</h3>
<ul>
 <li>The DOJ announced the largest forfeiture action in its history on October 14, seizing 127,271 BTC, worth approximately $15 billion, from Chen Zhi, founder of the Prince Group.</li>
 <li>The seized Bitcoin brings total US government holdings to 325,283 BTC valued at over $37 billion, directly feeding the Strategic Bitcoin Reserve established by the March executive order.</li>
 <li>Chen Zhi faces charges for operating forced-labor scam compounds in Cambodia that executed “pig butchering” schemes, defrauding billions from global victims.</li>
</ul>
The US Department of Justice (DOJ) filed a civil forfeiture complaint against approximately 127,271 Bitcoin (<a href="https://www.thecoinrepublic.com/price-prediction/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>), currently valued at $15 billion, representing the largest forfeiture action in department history.
The filing is part of the unsealing of an indictment <a href="https://www.justice.gov/usao-edny/pr/chairman-prince-group-indicted-operating-cambodian-forced-labor-scam-compounds-engaged" rel="noopener noreferrer nofollow">on October 14</a> charging Chen Zhi, known as “Vincent,” with wire fraud conspiracy and money laundering conspiracy.
Initial <a href="https://x.com/tier10k/status/1978107295599927710" rel="noopener noreferrer nofollow">reports on October 14</a> suggested the 127,271 BTC originated from the LuBian mining operation that Chen Zhi ran and were stolen in 2020.
Profile db initially questioned whether DOJ could obtain the funds. However, DOJ officials confirmed that the funds <a href="https://x.com/tier10k/status/1978109874241249376" rel="noopener noreferrer nofollow">were in government custody</a>, although they declined to comment on the acquisition methods.
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 <img loading="lazy" width="595" height="730" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/10/image-95.jpeg" alt="Initial report on the confirmed forfeiture | Source: db/X (formerly Twitter)">
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 Initial report on the confirmed forfeiture | Source: db/X (formerly Twitter)
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The forfeiture brings total US government Bitcoin holdings to an estimated 325,283 BTC, valued at over $37 billion at October 14 prices.
<h2 class="wp-block-heading" id="h-prince-group-s-criminal-enterprise">Prince Group’s Criminal Enterprise</h2>
According to the indictment, Chen Zhi founded and chaired Prince Group, a multinational conglomerate based in Cambodia.
The organization operated dozens of entities across more than 30 countries under the guise of legitimate real estate development, financial services, and consumer operations.
However, prosecutors alleged Prince Group functioned as one of Asia’s largest transnational criminal organizations.
The operation centered on forced-labor compounds in Cambodia, where hundreds of trafficked workers executed cryptocurrency investment fraud schemes.
These “pig butchering” scams involved malicious actors contacting victims through messaging platforms and social media.
Perpetrators built trust over time before convincing victims to transfer cryptocurrency based on false investment promises.
Prince Group targeted victims worldwide, including a Brooklyn-based network that facilitated fraud against more than 250 victims across the US.
The compounds operated as prison-like facilities with high walls, barbed wire, and violent enforcement.
Chen Zhi maintained direct involvement in managing the operations, keeping ledgers that tracked profits and documenting “phone farms” using thousands of devices and millions of phone numbers.
Prosecutors presented evidence showing Chen Zhi possessed images depicting beatings and torture methods. He communicated with subordinates about beating individuals who “caused trouble,” specifying in one instance that victims should not be “beaten to death.”
<h2 class="wp-block-heading" id="h-sophisticated-money-laundering">Sophisticated money laundering</h2>
The Prince Group employed advanced cryptocurrency laundering techniques to obscure the proceeds of fraud.
Associates used “spraying” and “funneling” methods, repeatedly disaggregating large cryptocurrency volumes across numerous virtual currency addresses before reconsolidating them.
Chen Zhi personally held private keys to unhosted cryptocurrency wallets containing the seized Bitcoin.
He maintained diagrams recording laundering processes and boasted that Prince Group’s mining operations generated “considerable” profit with “no cost” because the operating capital came from stolen funds.
The defendant and co-conspirators spent criminal proceeds on luxury purchases, including watches, yachts, private jets, vacation homes, and rare artwork.
One notable acquisition was a Picasso painting purchased through a New York City auction house.
<h2 class="wp-block-heading" id="h-impact-on-strategic-bitcoin-reserve">Impact on Strategic Bitcoin Reserve</h2>
The seized Bitcoins might feed the <a href="https://www.thecoinrepublic.com/2025/09/09/house-bill-moves-trumps-strategic-bitcoin-reserve-a-step-closer/" rel="noopener noreferrer nofollow">Strategic Bitcoin Reserve</a> established by President <a href="https://www.thecoinrepublic.com/2025/10/06/trump-news-president-donald-trump-declares-virtually-no-inflation-as-bitcoiners-shake-their-heads/" rel="noopener noreferrer nofollow">Donald Trump’s</a> March 6 executive order.
The executive order mandated that Bitcoin seized through criminal and civil forfeiture proceedings be deposited into the reserve as a long-term store of value.
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 <figure class="aligncenter size-full">
 <img loading="lazy" width="593" height="174" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/10/image-93.jpeg" alt="Estimates on total BTC amount under US government’s custody | Source: Zoomer/X (formerly Twitter)">
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 Estimates on total BTC amount under US government’s custody | Source: Zoomer/X (formerly Twitter)
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The policy prevents the government from selling any Bitcoin in the reserve, creating a digital equivalent of Fort Knox.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick were tasked with developing budget-neutral strategies for expanding Bitcoin holdings without incurring taxpayer costs.
Chen Zhi remained at large at the time of the announcement. If convicted, he faces a maximum sentence of 40 years in prison.
The Treasury Department designated Prince Group as a transnational criminal organization and announced sanctions against Chen Zhi and multiple associated individuals and entities.
The United Kingdom’s Foreign, Commonwealth, and Development Office also announced parallel sanctions.
The post <a href="https://www.thecoinrepublic.com/2025/10/14/doj-seizes-15-billion-worth-of-bitcoin-in-largest-forfeiture-boosting-us-strategic-reserve/" rel="noopener noreferrer nofollow">DOJ Seizes $15 Billion Worth of Bitcoin in Largest Forfeiture, Boosting US Strategic Reserve</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.

DOJ Seizes $15 Billion Worth of Bitcoin in Largest Forfeiture, Boosting US Strategic Reserve

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