The United States government has recently acquired an additional $14 billion in Bitcoin. The pressing question remains: How will they utilize this vast amount of digital currency?
On Tuesday, the Department of Justice announced a significant seizure of over $14.4 billion worth of Bitcoin from Chen Zhi, the leader of a Cambodian business group accused of orchestrating a global cryptocurrency scam. This marks the largest confiscation in DOJ history.
U.S. prosecutors have now charged Chen with wire fraud and money laundering and are seeking legal ownership over his seized Bitcoin through criminal forfeiture proceedings. If successful, will this monumental stash be added to President Donald Trump’s strategic Bitcoin reserve? Or could it be used to compensate Chen’s alleged victims?
The answer might not emerge soon as the Treasury Department, responsible for managing national Bitcoin assets and involved in Chen’s case, has not commented on their plans for these funds when asked by Decrypt.
The U.S. government’s decision regarding this substantial amount could have far-reaching implications. Some advocates for the president’s strategic reserve initiative are already suggesting that these funds should support that project.
“Transforming illicit gains into resources that bolster America’s Strategic Bitcoin Reserve demonstrates how effective policy can convert wrongdoing into enduring national benefit,” stated Sen. Cynthia Lummis (R-WY) on Tuesday while praising the administration’s actions against Chen Zhi.
🔥Second, establishing guidelines for storing seized bitcoin securely, returning it to victims appropriately, and preserving it for future generations underscores how turning illegal proceeds into assets can enhance America’s Strategic Reserve.
— Senator Cynthia Lummis @SenLummis October 14, 2025
Lummis has proposed legislation requiring the U.S government to acquire more than $100 billion worth of Bitcoin to reinforce its current holdings—highlighting Tuesday’s events as evidence Congress needs laws dictating how seized Bitcoins are managed and returned.