Finance

Bitcoin Billions Shift: Did the US Seize or Acquire Funds Linked to Alleged $14B Crypto Scam?

Wallets linked to Chen Zhi moved $1.7B in Bitcoin, despite recent U.S. sanctions.

October 22, 2025, 5:16 PM

The clash between traditional stock exchanges and the rise of Bitcoin represents a pivotal shift in the financial landscape. By MDL.

Executive Summary

Wallets linked to alleged crypto scam mastermind Chen Zhi moved approximately $1.7 billion in Bitcoin to new addresses following U.S. Treasury Department sanctions.

Chen Zhi, founder of Prince Holding Group, faces criminal charges from the U.S. DOJ for allegedly orchestrating a $14 billion “pig butchering” crypto scam involving forced labor.

Significant questions persist regarding the U.S. government’s $14 billion Bitcoin seizure, with conflicting narratives about its origin and how it came into U.S. custody.

The Story So Far

Chen Zhi, the founder of Prince Holding Group, is alleged to be the mastermind behind a vast $14 billion “pig butchering” cryptocurrency scam that reportedly involved forced labor and led to billions in victim losses, prompting the U.S. Department of Justice to issue criminal charges and the U.S. Treasury to sanction associated wallets, which in turn triggered the recent movement of his Bitcoin holdings in an apparent attempt to obfuscate these assets from authorities.

Why This Matters

The movement of $1.7 billion in Bitcoin by alleged scammer Chen Zhi shortly after U.S. sanctions highlights the persistent challenge authorities face in freezing illicit crypto assets, as perpetrators actively work to obfuscate their financial trails. This ongoing cat-and-mouse game complicates asset recovery efforts and underscores the difficulties in enforcing sanctions in the decentralized crypto landscape. Furthermore, the unresolved questions surrounding the U.S. government’s prior $14 billion seizure from the same operation, including conflicting narratives about its origin and how it came into custody, introduce transparency concerns regarding large-scale government crypto seizures and the overall pursuit of justice in these complex fraud cases.

Who Thinks What?

The U.S. Department of Justice and U.S. Treasury Department allege that Chen Zhi is the mastermind behind a $14 billion “pig butchering” crypto scam, have sanctioned wallets linked to him, and seized $14 billion in Bitcoin from Prince Holding Group, which they claim was used to launder stolen funds.

Arkham Intelligence identified the recent movement of approximately $1.7 billion in Bitcoin from wallets linked to Chen Zhi to new addresses, believing this action aims to obfuscate connections to the now-sanctioned addresses.

On-chain analysts and intelligence firm Elliptic question the narrative surrounding the $14 billion in Bitcoin already under U.S. government control, speculating whether the 2020 “theft” from LuBian truly occurred or if the U.S. government or its affiliates were involved in the acquisition of these funds.

Wallets linked to Chen Zhi, an alleged mastermind behind a $14 billion global cryptocurrency scam, have recently moved approximately $1.7 billion in Bitcoin to new addresses. The transfers, identified by Arkham Intelligence, involve 15,959 BTC from wallets that the U.S. Treasury Department sanctioned just last week.

Alleged Scam and Sanctions

Chen Zhi, a Chinese and Cambodian national, is the founder and chairman of Prince Holding Group, a multinational conglomerate based in Cambodia. The U.S. Department of Justice (DOJ) alleges that Prince Holding Group is at the core of a vast “pig butchering” crypto scam operation, which reportedly involves forced labor and billions of dollars in victim losses.

Federal prosecutors recently announced criminal wire fraud and money laundering charges against Chen, who is currently at large. The 15,959 BTC moved are separate from another $14 billion worth of Bitcoin that the U.S. government has already seized from Prince Holding, marking what the DOJ calls the largest forfeiture action in its history.

Bitcoin Movements and Obfuscation

According to Arkham Intelligence, the recent movement of nearly $2 billion in Bitcoin to four new wallets likely aims to obfuscate connections to the addresses now blacklisted by the U.S. Treasury. This strategic relocation of assets comes as authorities continue their pursuit of Chen Zhi and his alleged illicit network.

Unanswered Questions Regarding Seized Funds

Significant questions persist regarding the $14 billion in Bitcoin already under U.S. government control. Arkham had previously determined these funds to be the same ones allegedly stolen from LuBian, a Chinese mining pool, in 2020.

However, the DOJ last week cited LuBian as a company Prince Holding used to launder stolen Bitcoin. This has led some on-chain analysts to speculate whether the 2020 “theft” of $14 billion in BTC ever truly occurred, or if the U.S. government or its affiliates were involved in the acquisition of these funds. On-chain intelligence firm Elliptic noted that “it remains unclear how the Bitcoin came to be in U.S. custody.”