The US Department of Justice has seized 127,195 Bitcoin (BTC) linked to Chen Zhi, the alleged operator of a massive “pig butchering” scam based in Cambodia. The value of the seized Bitcoin—around $15 billion—marks the largest forfeiture action in the DOJ’s history, underscoring the scale of global crypto-related financial crimes and the US government’s growing role in tracking and recovering digital assets.
The indictment against Chen Zhi was unsealed this week in federal court in Brooklyn, New York, revealing details of a complex international fraud operation that targeted thousands of victims worldwide through sophisticated investment scams. Prosecutors allege that Chen and his associates laundered billions in stolen funds through cryptocurrency exchanges and shell companies before the assets were traced and frozen.
This latest seizure adds to the already significant Bitcoin reserves held by the US government from past enforcement actions, including those tied to the Silk Road, Bitfinex hack, and other major cases. In total, US holdings now exceed 316,000 BTC, valued at nearly $36 billion at current prices, making the government one of the largest Bitcoin holders globally.
US Government’s Bitcoin Holdings Grow After Historic Seizure
CryptoQuant reports that the US government now controls 316,760 BTC, worth roughly $35.9 billion, following its latest seizure from Chen Zhi’s “pig butchering” scam. The 127,195 BTC confiscated in this case alone—currently valued at $13.2 billion—marks the largest single Bitcoin seizure ever conducted by the Department of Justice. At Bitcoin’s peak earlier this year, those same holdings were worth around $15.5 billion.
This operation cements the US as one of the largest known Bitcoin holders, with its wallet comprising assets from several major law enforcement actions over the past decade. The most significant components include:
Bitfinex Hack (2016) — Law enforcement recovered 106,910 BTC stolen from the crypto exchange after a multi-year investigation. The funds were linked to Ilya Lichtenstein and Heather Morgan, who laundered billions before being arrested in 2022.
Silk Road (2013) — The government confiscated 81,988 BTC from the dark web marketplace operated by Ross Ulbricht. This remains one of the earliest and most famous crypto seizures.
Potapenko/Turogin (2022) — A smaller seizure of 667 BTC connected to Estonian nationals accused of running a $575 million crypto fraud through shell mining services.
Together, these seizures highlight how the US has quietly become a major Bitcoin whale—a position gained not through investment, but through relentless enforcement and asset recovery in the digital age.
Bitcoin Holds Support But Faces Resistance Ahead
Bitcoin (BTC) is trading around $111,142, showing signs of stabilization after last week’s flash crash that briefly sent prices below $104,000. The 12-hour chart reveals that BTC has found temporary support near the $110,000 zone, which has acted as a key demand area multiple times since mid-September. This range now serves as a battleground between cautious buyers and sellers capitalizing on market weakness.
However, BTC remains below the 50-day (blue) and 100-day (green) moving averages, both currently converging around $114,000–$116,000, creating strong short-term resistance. The 200-day (red) moving average sits near $112,000, slightly above current levels, signaling that the broader trend is still fragile. A clean break above these levels could open the path toward $117,500, but failure to regain momentum may expose BTC to another test of $108,000–$110,000.
Trading volumes remain elevated but slightly cooling compared to last Friday’s capitulation event, suggesting consolidation rather than panic. Overall, Bitcoin appears to be in a recovery phase, though the lack of directional conviction indicates that traders are waiting for stronger catalysts — whether from macro data, ETF flows, or on-chain signals — before taking decisive positions.
Featured image from ChatGPT, chart from TradingView.com
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