US Could Seek Forfeiture of 127,271 Bitcoin Tied to Alleged Cambodia Scheme Potentially Adding About $14 Billion to Reserves

• DOJ seeks forfeiture of 127,271 Bitcoin tied to Chen Zhi and the Prince Holding Group.

• The seizure follows an indictment in the U.S. District Court for the Eastern District of New York alleging wire fraud and money laundering conspiracy.

• 127,271 BTC equals about $14.4 billion at time of the filing, and OFAC sanctions were announced the same day.

US Bitcoin forfeiture: DOJ seeks 127,271 BTC tied to Chen Zhi, worth ~$14.4B. Read the legal details, timelines, and potential impact on U.S. crypto reserves today.

Published: 2025-10-14. Updated: 2025-10-14. Author: COINOTAG

A U.S. federal court unsealed a criminal indictment and a corresponding civil forfeiture complaint seeking control of a large Bitcoin holding. The Department of Justice has tied 127,271 BTC to alleged fraudulent schemes operated by a Cambodia-based company founded by Chen Zhi. The Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against the company and related entities the same day.

Civil forfeiture complaint against 127,271 Bitcoin. Source: US District Court, Eastern District of New York

What is the US Bitcoin forfeiture tied to Chen Zhi?

US Bitcoin forfeiture refers to the Department of Justice’s civil forfeiture complaint seeking 127,271 BTC linked to Chen Zhi and his Cambodia-based Prince Holding Group. The complaint accompanies a criminal indictment alleging wire fraud conspiracy and money laundering conspiracy filed in the U.S. District Court for the Eastern District of New York.

How will U.S. authorities pursue seizure of 127,271 BTC?

The DOJ filed a civil forfeiture complaint seeking court approval to seize the Bitcoin if Chen Zhi is convicted. The complaint identifies cryptocurrency addresses and asset flows traced to the alleged investment schemes. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on the Prince Holding Group and affiliates on the same day, restricting U.S. persons from dealing with the sanctioned entities.

The civil forfeiture process runs parallel to criminal prosecution. If a conviction is obtained, the government will ask the court to convert alleged proceeds of crime into forfeited assets. The complaint documents transactions, wallet identifiers and blockchain forensics used to establish a connection between the funds and the alleged criminal conduct, according to court filings and official notices from the Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York.

Frequently Asked Questions

Could seized Bitcoin become part of a U.S. strategic reserve?

If the court orders forfeiture following conviction, seized Bitcoin could be transferred to federal custody and potentially added to U.S. crypto reserves. President Donald Trump’s executive order earlier in the year established a framework for national Bitcoin and crypto reserves, which would govern how such assets are managed.

Why is the U.S. targeting Bitcoin linked to the Prince Holding Group?

The action targets proceeds allegedly derived from fraudulent crypto investment schemes attributed to the Prince Holding Group and Chen Zhi. Prosecutors contend that the 127,271 BTC represents funds obtained through wire fraud and money laundering, and the forfeiture complaint documents blockchain traces and transaction histories to support that claim.

Key Takeaways

• Large-scale forfeiture action: DOJ seeks control of 127,271 BTC (~$14.4B) linked to alleged fraud by Chen Zhi and affiliated entities.
• Parallel enforcement actions: Criminal charges in the Eastern District of New York accompany OFAC sanctions announced by the U.S. Department of the Treasury.
• Potential policy impact: If forfeited, the Bitcoin could be folded into U.S. custody consistent with the executive order establishing national crypto reserves; stakeholders should monitor court timelines and official DOJ statements.

Conclusion

This civil forfeiture complaint against 127,271 BTC represents a significant enforcement effort by U.S. authorities. The Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York have provided factual allegations and forensic tracing in court filings, while the U.S. Department of the Treasury’s OFAC issued sanctions against the Prince Holding Group. As the criminal case proceeds, courts will determine whether the Bitcoin is forfeitable. Readers should watch official Department of Justice filings and court dockets for definitive outcomes and next steps.

Sources: Department of Justice (DOJ) filings; U.S. Attorney’s Office for the Eastern District of New York; U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC); official court documents.