The US government seized 127,271 Bitcoins (worth approximately $15 billion) belonging to Chinese businessman Chen Zhi, bringing its total BTC holdings to 325,283 BTC. This brings the value of US Bitcoin holdings to over $37 billion.
After US President Donald Trump took office, the country announced that it would create a Bitcoin reserve and would not sell any BTC from now on.
The seizure, conducted by the US Department of Justice's (DoJ) National Security Bureau, is the largest Bitcoin seizure in the department's history. Chen Zhi is known as the founder and chairman of the Cambodia-based multinational Prince Holding Group.
According to the DoJ's statement, Chen Zhi and his team were running cryptocurrency fraud schemes known as “pig butchering” through “labor camps” they established throughout Cambodia.
“The individuals held captive in these camps were forced to work in cryptocurrency fraud schemes that stole billions of dollars from victims in the United States and around the world,” the statement said.
According to the US Treasury Department, the proceeds were laundered through more than 100 shell and holding companies worldwide, concealing their traces.
Chen Zhi, 38, reportedly renounced his Chinese citizenship and remains a fugitive living in Cambodia. Prince Group is reportedly operating in the real estate and finance sectors, but behind the scenes, it has become one of Asia's largest criminal organizations.