US Gov’t Seeks to Add $14B to Crypto Reserves as Part of Forfeiture Case
A US federal court has unsealed a criminal indictment related to a major cryptocurrency fraud scheme, with the government seeking forfeiture of 127,271 Bitcoin (approximately $14.4 billion). The assets are linked to Chen Zhi, founder of a Cambodia-based company accused of orchestrating crypto investment fraud. The US Treasury sanctioned Zhi’s company, Prince Holding Group, and affiliates. Zhi faces charges of wire fraud conspiracy and money laundering conspiracy in the Eastern District of New York. If the court approves forfeiture following conviction, the Bitcoin would significantly increase US national crypto reserves, which were established by executive order in March 2024. This is one of the largest potential seizures in US cryptocurrency history.
