{"id":502901,"date":"2025-10-14T16:57:11","date_gmt":"2025-10-14T15:57:11","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=502901"},"modified":"2025-10-14T17:00:49","modified_gmt":"2025-10-14T16:00:49","slug":"us-to-add-14-billion-btc-to-strategic-bitcoin-reserve-seized-from-chinese-scammer","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/us-to-add-14-billion-btc-to-strategic-bitcoin-reserve-seized-from-chinese-scammer\/","title":{"rendered":"US to add $14 billion BTC to Strategic Bitcoin Reserve seized from Chinese scammer"},"content":{"rendered":"<p>The US government is moving to seize 127,271 <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> worth about $14.2 billion, which investigators say was generated through a cross-border \u201cpig butchering\u201d scam operated by Chinese national Chen Zhi.<\/p>\n<p>If completed, the Bitcoin should be added to the U.S.'s Strategic Bitcoin Reserve according to the terms of <a href=\"https:\/\/cryptoslate.com\/trumps-signs-bitcoin-reserve-order-but-wont-buy-more-for-now\/\">Trump's Executive Order<\/a> issued earlier this year. However, a lack of formalized policy amid the government shutdown and a <a href=\"https:\/\/cryptoslate.com\/us-treasury-faces-a-90-day-deadline-to-map-out-strategic-bitcoin-reserve\/\">ticking clock<\/a> to ratify could disrupt the plan.<\/p>\n<p>The Executive Order explicitly <a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/03\/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile\/\">states<\/a>,<\/p>\n<blockquote><p>&#8220;The Strategic Bitcoin Reserve will be capitalized with bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings.&#8221;<\/p><\/blockquote>\n<p>The legal filing, submitted on Oct. 14, outlines a far-reaching criminal enterprise that blended crypto investment fraud, human trafficking, and political corruption.<\/p>\n<figure id=\"attachment_502906\" aria-describedby=\"caption-attachment-502906\" style=\"width: 619px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-502906\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/G3OkGf_WoAAi_c4.jpg\" alt=\"US Bitcoin Seizure\" width=\"619\" height=\"812\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/G3OkGf_WoAAi_c4.jpg 1588w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/G3OkGf_WoAAi_c4-228x300.jpg 228w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/G3OkGf_WoAAi_c4-780x1024.jpg 780w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/G3OkGf_WoAAi_c4-768x1008.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/G3OkGf_WoAAi_c4-1170x1536.jpg 1170w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/G3OkGf_WoAAi_c4-1560x2048.jpg 1560w\" sizes=\"(max-width: 619px) 100vw, 619px\" \/><figcaption id=\"caption-attachment-502906\" class=\"wp-caption-text\">US Bitcoin Seizure<\/figcaption><\/figure>\n<h2>Crypto fraud<\/h2>\n<p>According to the court <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nyed.537346\/gov.uscourts.nyed.537346.1.0.pdf\">filing<\/a>, Zhi operated Prince Group, a central player in Cambodia\u2019s underground digital economy.<\/p>\n<p>The entity operated a network of scam compounds that doubled as detention sites for trafficked laborers. Thousands of migrants, lured by fake job ads, were reportedly forced to run fraudulent crypto-investment schemes under threat of violence.<\/p>\n<p>Under Chen\u2019s direction, at least ten major compounds were established, including facilities linked to the Jinbei Hotel and Casino, the Golden Fortune Science and Technology Park, and Mango Park.<\/p>\n<p>Court records indicate that Chen personally kept ledgers detailing each site\u2019s operations, referencing the Chinese phrase \u201csha zhu,\u201d or \u201c<a href=\"https:\/\/cryptoslate.com\/federal-agencies-team-up-to-fight-surge-in-pig-butchering-crypto-scams\/\">pig-butchering<\/a>,\u201d which is a term for long-con scams that emotionally manipulate victims before defrauding them.<\/p>\n<p>The US government alleges that Chen and senior executives leveraged bribes and political influence to evade prosecution, even obtaining advance warnings of planned law enforcement raids.<\/p>\n<p>By exploiting these connections, the group maintained control of billions in illicit crypto flows and entrenched its position within Cambodia\u2019s broader shadow economy.<\/p>\n<h2>Huione's sanctions<\/h2>\n<p>Apart from moving to confiscate the illegal funds, the US authorities, acting in tandem with the United Kingdom\u2019s Foreign, Commonwealth, and Development Office (FCDO), also imposed sanctions on Zhen and his related entities.<\/p>\n<p>According to the press <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0278\">statement<\/a>, OFAC sanctioned 146 individuals and entities tied to the Prince Group Transnational Criminal Organization (TCO), a Cambodia-based syndicate led by Chen Zhi that allegedly operated hundreds of online investment scams targeting Americans and citizens of allied nations.<\/p>\n<p>FinCEN also invoked Section 311 of the USA PATRIOT Act to formally isolate <a href=\"https:\/\/cryptoslate.com\/us-targets-huione-group-in-crackdown-on-4-billion-crypto-laundering-network\/\">Cambodia\u2019s Huione Group<\/a> from the US financial system, labeling it a primary conduit for laundering proceeds from crypto fraud and related cybercrime.<\/p>\n<p>US officials said Huione\u2019s networks were instrumental in concealing billions in stolen funds from investors worldwide.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US government is moving to seize 127,271 Bitcoin worth about $14.2 billion, which investigators say was generated through a cross-border \u201cpig butchering\u201d scam operated by Chinese national Chen Zhi. If completed, the Bitcoin should be added to the U.S.&#8217;s Strategic Bitcoin Reserve according to the terms of Trump&#8217;s Executive Order issued earlier this year. [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":502903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,77968,77911,79312,77644,11],"tags":[79971,79151,77046],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US moves to seize $12B in bitcoin tied to &#039;pig butchering&#039;<\/title>\n<meta name=\"description\" content=\"US legal filing outlines a criminal enterprise linking crypto fraud and human trafficking under Chen Zhi&#039;s leadership.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/us-to-add-14-billion-btc-to-strategic-bitcoin-reserve-seized-from-chinese-scammer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US to add $14 billion BTC to Strategic Bitcoin Reserve seized from Chinese scammer\" \/>\n<meta property=\"og:description\" content=\"US legal filing outlines a criminal enterprise linking crypto fraud and human trafficking under Chen Zhi&#039;s leadership.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/us-to-add-14-billion-btc-to-strategic-bitcoin-reserve-seized-from-chinese-scammer\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-14T15:57:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-14T16:00:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/us-bitcoin-seizure.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/us-to-add-14-billion-btc-to-strategic-bitcoin-reserve-seized-from-chinese-scammer\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/us-to-add-14-billion-btc-to-strategic-bitcoin-reserve-seized-from-chinese-scammer\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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