US demands forfeiture of $14.2 billion in Bitcoin linked to Chen Zhi pig slaughterhouse

The US government seizes a record $14 billion worth of Bitcoin tied to Chen Zhi’s massive human trafficking and cryptocurrency fraud network.

The US Department of Justice (DOJ) has filed a civil forfeiture complaint to take control of approximately 127,000 BTC, worth approximately $14.2 billion.

The Bitcoin fortune is tied to LuBian and Cambodia-based businessman Chen Zhi, the chairman of Prince Group.

Record Bitcoin Seizure of $14 Billion

Arkham shared through In this type of abuse, victims are tricked into fake online relationships and then convinced to invest in fake cryptocurrency platforms. Once they deposit money, the scammers take their assets and disappear.

The Prince Group investment fraud did just that led to billions of dollars in losses and suffering for victims worldwide, including in New York. Zhi remains at large and faces charges of bank fraud and money laundering conspiracy. Prosecutors allege the illicit proceeds were used to buy luxury yachts, private jets, works of art and vacation properties.

On the other hand, LuBian was one of the largest Chinese mining pools with facilities in China and Iran. The platform had been the victim of the largest ever crypto heist in 2020, with hackers looting Bitcoin worth around $3.5 billion at the time.

According to DOJ documents, LuBian would have been financed and was operated for profit from criminal activities such as fraud, human trafficking and pig slaughter.

The blockchain analytics platform has confirmed that the stolen digital assets are now in the custody of the US government, marking one of the largest additions to US crypto reserves since their creation in March under President Donald Trump’s executive order.

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DOJ Filing Raises Questions About Forfeited Bitcoin

The DOJ documentation does not clarify how the Bitcoin came into U.S. custody, leaving open the question of whether the keys were hacked, voluntarily surrendered, or if the 2020 incident was actually a covert U.S. operation.

Meanwhile, on-chain researcher ZachXBT shared that wallet addresses listed in the government’s $14 billion seizure were flagged in a Milky Sad report about two years ago for exposing private keys. He pointed out that it now claims to have control over those wallets, suggesting either a third party hacked them on behalf of the US or the authorities did it themselves.

Additionally, the document states that the cryptocurrency was moved again between June and July 2024. It also mentions an incident involving a financial employee who allegedly fled with money and tried to hide, an event possibly linked to the Bitcoin transfers during that time.