US government seizes 127,195 Bitcoin linked to chen zhi scam – now holding over 316k BTC
The US Department of Justice has seized 127,195 bitcoin (BTC) linked to Chen Zhi, the alleged “Pig Butcheng Fraudster” based in Cambodia. The amount of bitcoin seized – around $ 15 billion – marks the largest action in the history of the DOJ, emphasizing the scale of financial crimes related to Crypto and the growing role of the US government 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 around the world through sophisticated investment scams. Prosecutors say Chen and his friends siphoned off billions in stolen funds from cryptocurrency exchanges and companies before the assets were traced and revealed.
This latest seizure adds to the important reserves of bitcoin kept by the US government from previous enforcement actions, including those arrested on the silk road, Hack’s bitfinex was the one that was worn, and other major crimes. In total, US holdings now exceed 366,000 BTC, which is worth about $36 billion at current prices, making the government the largest owner of bitcoin in the world.
The government’s grip on the US government is growing after a historic takeover
Cryptoquant reports that the US Government now controls 316,760 BTC, worth approximately $35.9 billion, following the latest seizure from the Chen Zhi Butcheng “Scam. 127,195 BTC of BTC was seized in this case alone – currently worth $13.2 billion – marking the largest single Bitcoin seizure ever made by the Department of Justice. At Bitcoin’s peak earlier this year, those perishables were worth about $15.5 billion.
This US operation is one of the largest known bitcoin managers, with its fund involved in the creation of several laws in the past decade. The most important elements include:
Hack’s Bitfinex is the one that was worn (2016) – Law enforcement recovered 106,910 BTC stolen from the Crypto Exchange after a multi-year investigation. These funds were linked to Ilya Lichtenstein and Heather Morgan, who spent billions before being arrested in 2022.
Silk Road (2013) – The government seized 81,988 BTC from a dark web market run by Ross Ulbricht. This remains one of the first and most popular crypto sites.
Potapenko / Turtogin (2022) – Small takeover of BTC connected to Estonian Nationals accused of paying $575 million CRYPRACTION for Shell mining services.
Together, these arrests highlight how the US is quietly becoming the biggest whale of bitcoin—a position gained through investment, but with poor 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 posted prices below $104,000. The 12-hour chart reveals that BTC has found temporary support near the $110,000 area, which has served as an important area for several times since mid-September. This range now serves as a battleground between cautious buyers and sellers who are paying for market weakness.
However, BTC remains below these 50-day (blue) and 100-day (green), both of which are now, currently turning around $114,000-$116,000, creating short-term resistance. The 200-day (red) corresponding middle is burning at $112,000, above current levels, signaling that the broader trend is still weak. A clean break above these levels could pave the way to $117,500, but failure to retrace BTC to another test of $108,000,000.
Trading volumes remain elevated but are slightly cooler compared to last Friday’s caplition event, suggesting consolidation rather than panic. Overall, Bitcoin seems to be in the recovery phase, or the lack of faith that guides it shows that traders are waiting for strong catalysts – either through macro data, or on-chain signals – before taking decisive positions.
Featured image from chatgpt, chart from artIngview.com
Planning process At Bitcoinist we focus on delivering well-researched, accurate, and unlimited content. We maintain strict sourcing standards, and each page receives diligent review by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content for our readers.
