US is Seizing $12 Billion in Bitcoin, But What Will They Do With It?
The US is transferring to grab round $12 billion in Bitcoin from Prince Group, a Cambodian-based pig butchering operation. It’s additionally making use of large sanctions to the Huione Group for facilitating cash laundering.
If Treasury can purchase and achieve possession of those property, it may considerably increase Trump’s Strategic Reserve. However, many defrauded Americans could try to reclaim their stolen cash.
More Bitcoin For The US Government
Pig butchering scams had been already a huge problem earlier than 2025’s unprecedented crypto crime wave, however escalating fraud is making all these issues a lot bigger.
One latest incident exhibits the dimensions of those incidents, because the Treasury is transferring to grab $12 billion in Bitcoin from a long-running scheme:
The Treasury additionally launched a statement on this pig butchering operation, though it doesn’t instantly deal with the hassle to grab these bitcoins.
It claimed {that a} multinational investigation focused the Prince Group, a Cambodian-based crime ring. By 2024, this group apparently stole a minimum of $10 billion from US residents.
Additionally, the Treasury finalized its efforts to sever the Huione Group from the US monetary system, attributable to its historical past of facilitating cash laundering.
Private crypto companies have levied restrictions upon the Cambodian monetary conglomerate, however the US authorities is making a significant escalation right here.
Some experiences counsel these funds may really be linked to the biggest crypto hack till date involving LuBian mining pool.
Strategic Reserve Implications?
The Prince Group’s operations had been actually scary, together with human trafficking, torture, sexual exploitation, and extra. Treasury’s report particulars all these unseemly features, which can be too lurid for our protection.
However, so far as the crypto neighborhood is involved, there’s one essential level to comprehend. If the Treasury can efficiently seize this Bitcoin, it may very well be an enormous windfall for Trump’s planned Strategic Reserve.
Specifically, the administration has run into a major problem: it custodies large portions of seized bitcoins, nevertheless it doesn’t have authorized possession. It can’t precisely put these property right into a Strategic Reserve if it’s legally obligated to return them to the precise fraud victims.
There could also be a possibility right here, relying on a couple of issues. If the Treasury can purchase these property, $12 billion is an enormous windfall. If even a tiny fraction of preliminary theft victims fail to pursue reimbursement, this Bitcoin could also be up for grabs.
In brief, there are a lot of elements in the air proper now. The US could fail to grab these bitcoins, or an enormous chunk could merely return to their preliminary homeowners. If, nonetheless, it may retain a couple of billion {dollars}’ value, this might make a Bitcoin Reserve actually formidable.
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