On October 14, 2025, the Department of Justice announced the confiscation of 127,271 bitcoins from a fraudulent operation based in Cambodia. This event sparked claims among crypto influencers that the U.S. government now possesses between 325,000 and 327,000 BTC. But are these assertions accurate? How can we accurately assess the U.S.’s Bitcoin reserves?
The U.S. authorities seized these bitcoins from Chen Zhi, leader of Prince Group—a criminal network operating internationally out of Cambodia. The DOJ described this as their largest asset forfeiture to date.
Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche emphasized that “the United States will employ every available measure to protect victims and reclaim stolen assets.”
Prior to this seizure, Arkham Intelligence estimated that the U.S.’s Bitcoin holdings were around 198,000 BTC based on blockchain data.
Claims Suggesting U.S. Holds Over 300k Bitcoins
The news about this massive bitcoin forfeiture led many social media figures with large followings to assert that America now controls either 325,000 or even up to 327,000 BTC.
BREAKING: WITH #BITCOIN COUNTING TO 327,000, THE UNITED STATES GOVERNMENT BECOMES THE WORLD’S SECOND LARGEST HOLDER.
This development is expected to have global repercussions.
— The Bitcoin Historian (@pete_rizzo_) October 14, 2025
An X post by Exodus wallet CEO JP Richardson echoed claims about America’s alleged holding of 327k bitcoins.
Read more: U.S. seizes $15b Bitcoin in forced-labor crypto scam case
The discussion mainly revolved around how much bitcoin America “holds,” highlighting a distinction between holding versus owning assets.
Differentiating Between Seizure and Forfeiture
Narratives frequently mention seizures from Chen Zhi’s operations when discussing American-held bitcoins—but official DOJ statements use “forfeiture” instead without mentioning any seizures directly seven times throughout their release documentations alone!
“Forfeitures eliminate crime incentives while restoring fraudulently obtained properties back into victim hands.” – FBI Guidebook
A statement made jointly by Attorney Generals Bondi & Blanche reads:
“Today’s action marks one significant blow against human trafficking globally along with cyber-financial frauds worldwide! By dismantling empires built upon forced labor deceitful practices alike sends clear messages: US utilizes all tools necessary defending victims recovering lost wealth bringing exploiters justice!”
This implies potential recommendations forthcoming whereby returned funds may benefit those affected via crimes committed under Price Group auspices—an idea not entirely unprecedented given previous examples such as Bitfinex hacker cases where nearly ninety-five thousand bits returned following similar processes last year alone!
Might Victims Receive Their Lost Bitcoins Back?
No precedent exists yet regarding whether Bitfinex-related returns occur since Trump established Strategic Reserves earlier March twenty-fifth prohibiting sales involving federally held cryptocurrencies complicating matters further still…
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