US Seeks Seizure of $14.2 Billion in Bitcoin Linked to Pig Slaughter Kingpin Chen Zhi

US Government Seizes Record $14 Billion in Bitcoin Connected to Chen Zhi’s Massive Cryptocurrency Fraud and Human Trafficking Network.

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

The Bitcoin fortune is linked to LuBian and Cambodia-based businessman Chen Zhi, who is the president of Prince Group.

Record Bitcoin seizure worth $14 billion

arkham shared Through X, Zhi directed large-scale human trafficking and pig slaughter schemes throughout Asia. This type of exploit involves victims being tricked into establishing fake online relationships and then convinced to invest in fake cryptocurrency platforms. Once you deposit money, the scammers take your assets and disappear.

The Prince Group investment scams have led billions of dollars in loss and suffering for victims around the world, including New York. Zhi remains at large and faces charges of wire fraud and money laundering conspiracy. Prosecutors allege the illicit profits were used to purchase luxury yachts, private jets, works of art and vacation properties.

On the other hand, LuBian was one of the largest Chinese mining groups with facilities in China and Iran. The platform had been subject to the largest cryptocurrency theft ever recorded in 2020, with hackers looting Bitcoin worth around $3.5 billion at the time.

According to the Justice Department filing, LuBian was allegedly founded and operated using proceeds from criminal activities such as scams, human trafficking, and pig slaughter schemes.

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 the US crypto reserves since their establishment in March under President Donald Trump’s executive order.

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Justice Department Filing Raises Questions About Bitcoin Loss

The Justice Department filing does not clarify how the Bitcoin came into US custody, leaving open the question of whether the keys were hacked, voluntarily handed over, or if the 2020 incident was actually a secret US operation.

Meanwhile, on-chain researcher ZachXBT shared that wallet addresses included in the government’s $14 billion seizure had been flagged in a Milky Sad report about two years ago for having exposed private keys. He noted that he now claims to be in control of those wallets, suggesting that a third party hacked them on behalf of the United States or the authorities did it themselves.

Additionally, the document details that the cryptocurrency moved again between June and July 2024. It also mentions an incident involving a finance staff member who allegedly fled with funds and attempted to hide, an event that may be related to Bitcoin transfers during that time.