The United States government has confiscated 127,271 Bitcoins, valued at roughly $15 billion, from Chinese entrepreneur Chen Zhi. This acquisition increases the US’s total Bitcoin reserves to 325,283 BTC, pushing their worth beyond $37 billion.
Following Donald Trump’s inauguration as President of the United States, an announcement was made that the nation would establish a Bitcoin reserve and refrain from selling any BTC henceforth.
This operation by the National Security Bureau of the US Department of Justice (DoJ) marks its largest-ever seizure of Bitcoin. Chen Zhi is recognized as both founder and chairman of Prince Holding Group, a multinational corporation based in Cambodia.
The DoJ disclosed that Chen Zhi and his associates orchestrated cryptocurrency scams known as “pig butchering” through “labor camps” they set up across Cambodia.
“Individuals detained in these camps were coerced into participating in cryptocurrency fraud operations that defrauded billions from victims globally,” stated their report.
The US Treasury Department indicated that these illicit gains were funneled through over 100 shell companies worldwide to obscure their origins.
Chen Zhi, aged 38, is said to have renounced his Chinese citizenship and remains on the run while residing in Cambodia. Although Prince Group appears involved in real estate and finance sectors on paper, it reportedly functions as one of Asia’s most significant criminal syndicates behind closed doors.
*This information should not be considered investment advice.