The US DOJ seizes ~$15B in bitcoin held in wallets owned by a man who oversaw a “pig butchering” operation in Cambodia, in the DOJ's largest ever forfeiture

The Department of Justice has seized about $15 billion worth of bitcoin held by a man who oversaw a massive “pig butchering” …

CNBC 2025-10-15 Dan Mangan

Context & Ripple Effects

This sets a new high-water mark in a DOJ crypto-enforcement arc that previously included the $225.3M recovery tied to pig-butchering scams and the roughly $3.6B bitcoin seizure linked to the Bitfinex hack. The scale makes asset recovery—not only arrests or indictments—a central measure of the government’s response to crypto-enabled fraud.

The related coverage also includes a 2023 indictment over an alleged international pig-butchering scheme, placing this action within a continuing focus on operations that use cryptocurrency to receive or retain alleged scam proceeds.

First-order effects

The DOJ takes control of roughly $15B in bitcoin allegedly connected to the Cambodia-based operation, while the named wallet owner loses access to those holdings during the forfeiture action.
The action resets the DOJ’s stated record for a forfeiture, substantially increasing the financial stakes of the underlying investigation even though the alleged operator remains at large.

Second-order effects

The record recovery raises the operational importance of tracing and securing crypto wallets in pig-butchering cases, building on the DOJ’s earlier seizure of funds tied to more than 400 victims.
Other alleged scam networks face a clearer risk that accumulated on-chain proceeds can become a recoverable enforcement target, rather than remaining beyond reach solely because they are held in crypto.

Third-order effects

If comparable recoveries continue, crypto-fraud enforcement may increasingly center on depriving networks of pooled digital assets alongside pursuing individuals, changing how success is measured in cross-border scam cases.
The sequence from the Silk Road-related bitcoin forfeiture to this case points to a broader normalization of very large crypto-asset forfeitures; whether that translates into more victim restitution depends on case-specific legal outcomes not provided here.

The trend: Crypto enforcement is moving toward larger, asset-focused actions against alleged cross-border fraud networks as authorities pursue digital holdings at unprecedented scale.

Discussion

@senlummis Senator Cynthia Lummis on x
🧵Second, codifying how seized bitcoin is stored, returned to victims, and safeguarded for future generations. Turning criminal proceeds into assets that strengthen America's Strategic Bitcoin Reserve shows how sound policy can turn wrongdoing into lasting national value.
@tier10k @tier10k on x
The 127,271 BTC ($14B) they are seeking to forfeit are actually from the LuBian mining operation that was ran by the defendant and were actually stolen back in 2020. Have been sat idle ever since. Probably quite unlikely they get them, unless some sort of fake hack. [image]
@zackbshapiro Zack Shapiro on x
The seizure of $15 billion in bitcoin from a criminal enterprise built on human trafficking and financial fraud is exactly the kind of outcome the Strategic Bitcoin Reserve was designed to enable. Under Section 3(d) of the SBR Executive Order, any coins that can be traced to
@zachxbt @zachxbt on x
What's most interesting is wallet addresses listed in the US government $14B (127K BTC) seizure previously were named in a Milky Sad report ~2 years ago for having vulnerable private keys and now the USG says they have custody of them. [image]
@tier10k @tier10k on x
Update: DOJ official confirms they have the funds, says cannot comment on how they got them Has to be an interesting story on how that came to be
@senlummis Senator Cynthia Lummis on x
🧵The seizure of 127,000 bitcoin underscores two urgent priorities for Congress: first, passing clear digital asset market structure legislation to ensure law enforcement can act decisively against bad actors while protecting innovation.
@innercitypress @innercitypress on x
Update: photos from EDNY indictment of Chen Zhi of Prince Group: forced workers tied up on the ground, rack of phones used in “pig butchering” crypto scam of the type sketched in US v Roman Storm, book https://www.amazon.com/... [Still waiting for Dragonfly unsealing [image]
@wublockchain Wu Blockchain on x
EDNY has formally indicted Chinese businessman Chen Zhi, accusing him of running a transnational criminal network through Cambodia's Prince Group that carried out large-scale crypto investment scams across more than 30 countries. The indictment alleges that Chen's organization [i…
@secscottbessent Treasury Secretary Scott Bessent on x
The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes. Treasury is taking action to protect Americans by cracking down on foreign scammers. Working in close coordination with federal law enforcement and
@chainalysis @chainalysis on x
Today, OFAC and FinCEN, with UK's FCDO, designated the Prince Group TCO and 146 associates, while Huione Group was named under Section 311 of the USA PATRIOT Act. DOJ also seized a record $15B in bitcoin linked to these Southeast Asian crypto scam operations. Read more here: [ima…
@level941 @level941 on x
The United States just quietly added another $14 billion in Bitcoin reserves to federal custody. That's roughly 0.6 % of all Bitcoin ever mined. If Washington holds rather than auctions, it's functionally a U.S. Bitcoin reserve. And people said “what happened to the U.S. BTC
@lookonchain @lookonchain on x
The 127,271 $BTC the U.S. government seeks to forfeit are the stolen funds from LuBian. Once forfeited, the U.S. government's total #Bitcoin holdings will reach 324,625 $BTC($36.48B). These $BTC were stolen in December 2020 and moved about a year ago. LuBian also spent 1.4 [image…
@ryanwatkins_ Ryan Watkins on x
Honestly if the U.S. government just builds the strategic Bitcoin reserve by seizing coins from criminals that's alright by me. Not the buying some may want, but does lock up more supply that otherwise would've been sold. Bullish.
@senlummis Senator Cynthia Lummis on x
🧵Another @POTUS win and a victory for human rights, financial integrity, and American leadership.⬇️ 🔗https://www.lummis.senate.gov/ ...
@pentosh1 @pentosh1 on x
As always become say Y buy wen can seize
@zoomerfied @zoomerfied on x
[ ZOOMER ] U.S. SEEKS FORFEITURE OF 127,271 BTC ($12B) TIED TO TRANSNATIONAL PIG BUTCHERING SCAM RUN BY CHINESE NATIONAL CHEN ZHI
@zoomerfied @zoomerfied on x
[ ZOOMER ] THE US GOVERNMENT NOW HOLDS 325,283 BTC, WORTH OVER $37B, FOLLOWING RECENT BITCOIN SEIZURE
@aggrnews @aggrnews on x
List of addresses cited in the court filing [image]
@salsatekila @salsatekila on x
Steady lads, acquiring more budget neutral BTC
@nic__carter Nic Carter on x
@zoomerfied Right into the sovereign bitcoin reserve [image]
@avifelman Avi on x
Refreshing to note that the DoJ has seized $14b of Bitcoin and instead of panic because of sell pressure, there is celebration because it will never be sold. We have come a long way, enjoy it.
@fbi @fbi on x
Chairman of Prince Group Indicted for Operating Cambodian Forced Labor Scam Compounds Engaged in Cryptocurrency Fraud Schemes https://www.fbi.gov/... @NewYorkFBI [image]
@ustreasury @ustreasury on x
U.S. losses to online investment scams have steadily increased over the last several years, totaling over $16.6 billion. Today, the U.S. and U.K. have taken the largest action ever targeting cybercriminal networks in Southeast Asia, some of which engage in human trafficking and
@nicrypto Nic on x
Whatever happened to the Strategic Bitcoin Reserve?
@silvermanjacob Jacob Silverman on x
The scam compounds and pig butchering industry in Cambodia and surrounding parts has gotten so big. Here's an indictment involving the seizure of $14b+ worth of bitcoin, biggest forfeiture in DoJ history. https://www.justice.gov/...
@jlslw186 Julia on x
@nicrypto It's right here lol https://www.justice.gov/...
@solidintel_x @solidintel_x on x
INTEL: The U.S. is seeking forfeiture of 127,271 BTC (worth $12B) linked to a global pig butchering scam operated by Chinese national Chen Zhi, according to the U.S. District Court for the Eastern District of New York
@sgjohnsson Scott Johnsson on x
Indictment and press release for those looking. Largest forfeiture action in DOJ history. https://www.justice.gov/... https://www.justice.gov/... [image]
@silvermanjacob Jacob Silverman on x
The anonymous person trying to romance scam you or dangling a fake job offer is probably a prisoner in a Cambodian scam compound [image]
r/CryptoCurrency r on reddit
Will the United States add the seized 127k bitcoin to the strategic reserve?
r/Cyberpunk r on reddit
Feds Seize Record-Breaking $15 Billion in Bitcoin From Alleged Scam Empire

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