The Justice Department filed its largest-ever forfeiture suit on Tuesday to seize more than $14 billion in Bitcoin (CRYPTO: BTC) tied to a global "pig butchering scam."
DOJ Files To Seize Illegal BTC Proceeds
The indictment charged Cambodian-based business tycoon Chen Zhi of running a transnational criminal network that carried out large cryptocurrency investment scams across the U.S. and other countries. Zhi was yet to be caught as of this writing.
The DOJ alleged that Zhi ran scam compounds across Cambodia, where individuals held against their will defrauded victims through "pig butchering" schemes.
The scheme involves scammers contacting victims through dating apps and social media. After winning their trust, the fraudsters trick the victims into investing in a fraudulent platform, only to flee with the funds later.
The DOJ said that it has seized illegal proceeds of 127,271 BTC, currently worth $14.30 billion, the largest forfeiture action in its history.
See Also: Bitcoin (BTC) Price Predictions: 2025, 2026, 2030
US BTC Reserves To Swell?
The government holds 197,354 BTC, worth $22 billion, according to on-chain analytics firm Arkham, with the majority seized from criminal and civil forfeiture proceedings.
Should the DOJ succeed in taking control of Zhi’s criminal proceeds, the reserves would increase to 324, 625 BTC, worth $36.40 billion.
Sen. Cynthia Lummis (R-Wyo.), who introduced a bill regarding a national Bitcoin stockpile, said, “Turning criminal proceeds into assets that strengthen America's Strategic Bitcoin Reserve shows how sound policy can turn wrongdoing into lasting national value.”
Her bill proposes buying 1 million BTC over five years, with a 20-year holding period, leveraging budget-neutral strategies like Federal Reserve remittances and gold certificate revaluations.
Price Action: At the time of writing, BTC was exchanging hands at $112,197, down 0.91% in the last 24 hours, according to data from Benzinga Pro.
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