Key Takeaways
What’s happening?
The US Department of Justice has seized 127,271 BTC linked to a large-scale international pig slaughterhouse.
Why does it matter?
If successful, the seizure would increase the US government’s Bitcoin holdings by 64%.
The US Department of Justice [DOJ] filed a landmark forfeiture complaint to seize 127,271 Bitcoin [around $12 billion]. The asset is linked to a transnational “pig slaughter” scam allegedly carried out by Chen Zhi, chairman of Cambodia’s Prince Group.
The case, filed in the Eastern District of New York, is described as the largest crypto forfeiture case in DOJ history. It focuses on money laundered through unhosted wallets and payment rails connected to Huione.
The Treasury, FinCEN and Great Britain join coordinated action
The DOJ action coincides with a major action by the The US Department of the Treasury, FinCEN and the United Kingdom. They jointly sanctioned the Huione Group and related entities under new transnational crime measures.
FinCEN’s final rule designates Huione as a foreign financial institution primarily engaged in money laundering under Section 311 of the U.S. PATRIOT Act. This effectively cuts it off from the US banking system.
The UK Treasury’s Office of Financial Sanctions Implementation (OFSI) mirrored these sanctions and prevented UK entities from doing business with the same network.
This was after researchers traced billions of dollars in scam-related crypto transactions through the network, many of which financed forced laborers in Southeast Asia.
If forfeited, US Bitcoin holdings would rise by 64%
According to Arkham Intelligencethe US government currently owns 197,354 BTC, worth approximately $22 billion. It also has smaller reserves of 351 million USDT and 60,695 ETH.
Source: Arkham Intelligence
Should the DOJ’s seizure succeed, the government’s Bitcoin holdings would rise to approximately 324,600 BTC, representing a 64% increase and a market value of nearly $36 billion at the current price of $111,600 per BTC.
That addition would make Washington one of the largest single Bitcoin holders in the world, behind only Strategy, but more than Tesla and Marathon combined.
A Growing “Strategic Bitcoin Reserve”
The potential windfall could boost the U.S. Strategic Bitcoin Reserve — an accumulation built up through years of seizures from the Silk Road, Bitfinex and other cybercrime cases.
While federal agencies have historically auctioned off most seized coins, recent behavior suggests a more calculated approach. The government now holds larger balances for longer periods, rather than liquidating them immediately.
This dual strategy, aggressive seizures by law enforcement agencies combined with implicit BTC custody, positions the United States as a silent whale in the global crypto market.
If confirmed, Chen Zhi’s forfeiture would mark a milestone in financial crimes enforcement.