US Government Seizes 127,195 Bitcoin Linked To Chen Zhi Scam – Now Holds Over 316K BTC

The US Department of Justice has seized 127,195 Bitcoin (BTC) linked to Chen Zhi, the alleged operator of a large “pig butchering” rip-off primarily based in Cambodia. The worth of the seized Bitcoin—round $15 billion—marks the most important forfeiture motion within the DOJ’s historical past, underscoring the size of world crypto-related monetary crimes and the US authorities’s rising function in monitoring and recovering digital property.

The indictment in opposition to Chen Zhi was unsealed this week in federal court docket in Brooklyn, New York, revealing particulars of a fancy worldwide fraud operation that focused hundreds of victims worldwide by means of refined funding scams. Prosecutors allege that Chen and his associates laundered billions in stolen funds by means of cryptocurrency exchanges and shell corporations earlier than the property had been traced and frozen.

This newest seizure provides to the already vital Bitcoin reserves held by the US authorities from previous enforcement actions, together with these tied to the Silk Road, Bitfinex hack, and different main circumstances. In whole, US holdings now exceed 316,000 BTC, valued at almost $36 billion at present costs, making the federal government one of many largest Bitcoin holders globally.

US Government’s Bitcoin Holdings Grow After Historic Seizure

CryptoQuant reports that the US authorities now controls 316,760 BTC, value roughly $35.9 billion, following its newest seizure from Chen Zhi’s “pig butchering” rip-off. The 127,195 BTC confiscated on this case alone—at present valued at $13.2 billion—marks the most important single Bitcoin seizure ever carried out by the Department of Justice. At Bitcoin’s peak earlier this yr, those self same holdings had been value round $15.5 billion.

This operation cements the US as one of many largest recognized Bitcoin holders, with its pockets comprising property from a number of main legislation enforcement actions over the previous decade. The most vital parts embody:

Bitfinex Hack (2016) — Law enforcement recovered 106,910 BTC stolen from the crypto change after a multi-year investigation. The funds had been linked to Ilya Lichtenstein and Heather Morgan, who laundered billions earlier than being arrested in 2022.

Silk Road (2013) — The authorities confiscated 81,988 BTC from the darkish net market operated by Ross Ulbricht. This stays one of many earliest and most well-known crypto seizures.

Potapenko/Turogin (2022) — A smaller seizure of 667 BTC related to Estonian nationals accused of working a $575 million crypto fraud by means of shell mining companies.

Together, these seizures spotlight how the US has quietly change into a significant Bitcoin whale—a place gained not by means of funding, however by means of relentless enforcement and asset restoration within the digital age.

Bitcoin Holds Support But Faces Resistance Ahead

Bitcoin (BTC) is buying and selling round $111,142, displaying indicators of stabilization after final week’s flash crash that briefly despatched costs beneath $104,000. The 12-hour chart reveals that BTC has discovered momentary help close to the $110,000 zone, which has acted as a key demand space a number of instances since mid-September. This vary now serves as a battleground between cautious patrons and sellers capitalizing on market weak point.

However, BTC stays beneath the 50-day (blue) and 100-day (inexperienced) shifting averages, each at present converging round $114,000–$116,000, creating robust short-term resistance. The 200-day (purple) shifting common sits close to $112,000, barely above present ranges, signaling that the broader development remains to be fragile. A clear break above these ranges might open the trail towards $117,500, however failure to regain momentum might expose BTC to a different take a look at of $108,000–$110,000.

Trading volumes stay elevated however barely cooling in comparison with final Friday’s capitulation occasion, suggesting consolidation moderately than panic. Overall, Bitcoin seems to be in a restoration section, although the dearth of directional conviction signifies that merchants are ready for stronger catalysts — whether or not from macro knowledge, ETF flows, or on-chain alerts — earlier than taking decisive positions.

Featured picture from ChatGPT, chart from TradingView.com