US DOJ Seizes Historic $15B Bitcoin from Cambodia Fraud Scheme

The U.S. Department of Justice has executed the largest crypto confiscation in history by seizing approximately 127,271 Bitcoin, valued at around $15 billion, from Chen Zhi, chairman of Cambodia-based Prince Holding Group. Chen Zhi is charged with orchestrating a global "pig butchering" crypto scam that involved large-scale fraud, money laundering, and human trafficking, with victims forced to operate fraudulent investment schemes from forced labor camps in Cambodia. The seizure, announced in October 2025, has sent shockwaves through cryptocurrency markets, causing significant volatility in Bitcoin and XRP prices and raising concerns over investor trust and security in digital assets. The illicit funds were laundered through complex mechanisms involving shell companies and cryptocurrency exchanges, and the seized Bitcoin is intended for the U.S. Strategic Bitcoin Reserve rather than immediate liquidation, reflecting a new policy under President Trump's administration. Alongside the DOJ actions, the U.S. Treasury and UK authorities imposed sanctions on Chen Zhi, the Prince Group, and associated entities, emphasizing a coordinated international effort to combat crypto-enabled crime. This landmark case highlights escalating regulatory scrutiny and challenges in the cryptocurrency ecosystem, underscoring both law enforcement's growing capabilities and the inherent risks of crypto markets.