US May Gain 127,000 Bitcoin Tied to Alleged Crypto Scam

US May Gain 127,000 Bitcoin Tied to Alleged Crypto Investment Scam

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 15, 2025

Key Takeaways

The US government seized over 127,000 Bitcoin, worth $14.4 billion, linked to a major crypto fraud case involving a Cambodian firm;
Chen Zhi is accused of running a fake crypto investment scheme, and his company, Prince Holding Group, faces US sanctions;
The Bitcoin is in US custody, and prosecutors aim to keep it permanently if Zhi is convicted in court.

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A recent federal case could lead to an increase in Bitcoin BTC $111,042.60 held by the United States government.

On October 14, officials announced a seizure of over 127,000 Bitcoin, valued at around $14.4 billion, connected to an alleged cryptocurrency scam.

The digital currency is linked to charges against Chen Zhi, accused of leading a fraudulent operation through a Cambodian-based company.

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His firm, Prince Holding Group, is believed to have run a scam known as a "pig butchering" scheme, where victims were misled into putting money into fake crypto investments.

On the same day the indictment was made public, the US Treasury’s Office of Foreign Assets Control imposed sanctions on Zhi’s company and related businesses. These sanctions aim to block financial activity connected to the accused parties.

According to court records, Bitcoin has already been taken into federal custody. Prosecutors are seeking to keep the digital assets permanently, but this will depend on a conviction in court.

Zhi is currently charged in the Eastern District of New York with conspiracy to commit wire fraud and conspiracy to launder money.

If the court grants the forfeiture request after a conviction, this would become one of the largest additions to the government’s cryptocurrency holdings.

Investigators also revealed that some of the money obtained from the scheme was spent on expensive items. As of the latest update, Zhi had not been arrested and remains at large.

The founder and head of Praetorian Group International (PGI) has pleaded guilty to running a fraudulent Bitcoin scheme. How did the case unfold? Read the full story.