U.S. Seeks Forfeiture of Over $14 Billion in Bitcoin Tied to Alleged Pig-Butchering Scam

• 127,271 Bitcoin seized in the largest DOJ forfeiture action ever

• Civil complaint names Chen Zhi and Prince Holding Group; alleges coordinated “pig butchering” crypto fraud targeting global victims

• Seizure amount equals more than $14.2 billion at filing; complaint filed by U.S. Attorney’s Office for the Eastern District of New York and DoJ National Security Division

127,271 Bitcoin forfeiture: U.S. seeks $14.2B in Bitcoin tied to pig butchering fraud — read the case summary and next steps for victims.

Published: 2025-10-14 | Updated: 2025-10-14

Author: COINOTAG

What is the 127,271 Bitcoin forfeiture?

The 127,271 Bitcoin forfeiture is a civil action filed by the United States seeking forfeiture of digital assets allegedly tied to a large-scale “pig butchering” crypto scam. The complaint, filed by the U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice National Security Division, values the assets at over $14.2 billion.

How did the U.S. authorities describe the alleged scheme?

The civil complaint alleges that Chen Zhi, founder and chairman of Prince Holding Group, ran a multinational operation that used romance-style and investment deception techniques — commonly called “pig butchering” — to defraud victims in the United States and worldwide. Authorities state the scheme involved recruiting, coaxing, and manipulating victims into transferring funds to crypto wallets controlled by the defendants.

Background and legal context

The forfeiture filing marks the largest civil forfeiture request in Department of Justice history by Bitcoin quantity. The complaint identifies 127,271 Bitcoin as subject to forfeiture and ties the assets to alleged criminal proceeds obtained through deceptive investment schemes. The U.S. Attorney’s Office for the Eastern District of New York and the DoJ’s National Security Division are named as filing parties in the court documents. The complaint uses the term “pig butchering” to characterize the alleged fraud pattern, a phrase appearing in the filing itself.

What evidence and data are noted in the complaint?

The complaint references blockchain transaction records, account-level correspondence, and corporate association documents to establish a connection between the proceeds and the defendants. It specifies the Bitcoin amount (127,271 BTC) and an approximate USD valuation at the time of filing (over $14.2 billion). The filing points to cross-border financial flows and the use of cryptocurrency exchanges and wallets to move and hide proceeds.

Frequently Asked Questions

How will the civil forfeiture affect victims of the alleged pig butchering scam?

Victims remain potential civil claimants in forfeiture proceedings; the federal civil process can preserve assets while authorities investigate. For victims to seek restitution or return of assets, they typically must file claims in the forfeiture case and demonstrate a legal interest in the seized property, as outlined in federal forfeiture statutes and the court filing.

What protections exist to ensure legitimate owners can contest forfeiture?

The civil forfeiture process provides procedural safeguards: notice to interested parties, the opportunity to file a claim, and the right to a hearing. The complaint sets the framework for asset restraint and identification; interested parties must follow court deadlines and procedures to assert ownership or innocence.

Legal and market implications

This forfeiture action underscores increasing U.S. enforcement attention on large-scale crypto-enabled fraud. A civil forfeiture of this scale may influence compliance expectations for custodians, exchanges, and high-net-worth entities that hold or move large crypto balances. Regulators and prosecutors are citing blockchain evidence more frequently in cross-border investigations.

Authority and sources

Primary authorities referenced in reporting on the case include the Department of Justice, the U.S. Attorney’s Office for the Eastern District of New York, and the DoJ National Security Division. Court filings and the civil forfeiture complaint are the basis for the factual assertions in this article. (Sources referenced as plain text per editorial policy.)

Key Takeaways

• Scale: The action targets 127,271 BTC, valued at over $14.2 billion at filing.
• Allegations: The complaint accuses Chen Zhi and affiliated entities of running a global “pig butchering” crypto fraud.
• Next steps for stakeholders: Victims and interested parties should monitor the court docket and consider filing claims to protect their interests; counsel with experience in federal forfeiture is advisable.

Conclusion

This civil forfeiture seeking 127,271 Bitcoin forfeiture represents a landmark enforcement action by the Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York. The complaint alleges a sophisticated “pig butchering” fraud with international reach and substantial proceeds. As the case proceeds through federal court, affected parties and market participants should follow official court filings and consider legal remedies; COINOTAG will provide updates as new documents and developments become available.

Editor’s note: This is a breaking news story and will be updated.