Chen Zhi Moves $1.7B Bitcoin Amid $14B DOJ Seizure

Blockchain intelligence firm Arkham Intelligence has identified significant movements of 15,959 BTC—valued at over $1.72 billion—from wallets recently sanctioned by the U.S. Treasury Department to four new addresses. These transactions are directly tied to Chen Zhi, the Chinese and Cambodian national who founded Prince Holding Group, according to on-chain analysis. The timing is particularly notable, coming just days after federal prosecutors announced criminal charges against Chen for wire fraud and money laundering.

The transferred funds represent assets separate from the $14 billion in Bitcoin already seized by U.S. authorities from Prince Holding Group. Arkham Intelligence suggests these recent movements may represent an attempt to obfuscate connections to blacklisted wallets and potentially shield additional assets from law enforcement scrutiny. The scale of these transactions underscores the vast financial resources still available to Chen’s network despite the ongoing international investigation.

Chen Zhi’s Prince Holding Group, based in Cambodia, stands accused by the U.S. Department of Justice of operating a sophisticated global criminal network involving cryptocurrency fraud, money laundering, and forced labor. The operation allegedly centers around ‘pig butchering’ scams—a type of crypto fraud where perpetrators build trust with victims before convincing them to invest in fraudulent schemes, ultimately draining their funds.

The criminal charges reveal a multinational operation that spans multiple jurisdictions, complicating enforcement efforts. Chen remains at large despite the public announcement of charges, highlighting the challenges of international coordination in prosecuting sophisticated crypto criminals. The forced labor allegations add another layer of complexity to the case, suggesting the operation extended beyond financial crimes into human rights abuses.

Prince Holding Group’s use of LuBian, a Chinese mining pool, for laundering stolen Bitcoin demonstrates the intricate web of companies and jurisdictions involved in the alleged scheme. The DOJ has identified LuBian as a key component in the money laundering operation, though the exact relationship between the companies remains under investigation.

While Chen’s recent Bitcoin movements capture attention, the larger story involves the $14 billion in BTC now in U.S. government custody—the largest forfeiture action in Department of Justice history. The origins of this massive Bitcoin haul remain shrouded in mystery, with on-chain analysts and investigators struggling to piece together how American authorities obtained the funds.

Arkham Intelligence has determined that the $14 billion in seized Bitcoin matches funds allegedly stolen from Chinese mining pool LuBian in 2020. However, this connection raises more questions than answers. The Department of Justice’s own filings describe LuBian as a company Prince Holding used to launder stolen Bitcoin, creating a contradictory narrative about whether the 2020 incident represented a theft from LuBian or by LuBian.

Some on-chain analysts have begun questioning whether the 2020 ‘theft’ ever actually occurred, or whether the heist might have been executed by U.S. government operatives or hackers working on behalf of authorities. The Bitcoin in question moved only once between the alleged 2020 incident and its transfer to U.S. government-controlled wallets in summer 2024, adding to the mystery surrounding its custody history.

As on-chain intelligence firm Elliptic recently concluded, ‘It remains unclear how the Bitcoin came to be in U.S. custody. It’s also unclear who ‘stole’ the bitcoins from Chen/LuBian or whether a theft really took place.’ This uncertainty highlights the challenges of tracking and attributing cryptocurrency movements, even for sophisticated government agencies and intelligence firms.

The Chen Zhi case represents a watershed moment for cryptocurrency enforcement, demonstrating both the capabilities and limitations of current regulatory frameworks. The successful seizure of $14 billion in Bitcoin shows that law enforcement can track and recover substantial crypto assets, even in complex international cases. However, Chen’s ability to continue moving billions in sanctioned funds while evading capture reveals significant gaps in the global enforcement net.

The case also underscores the growing sophistication of blockchain intelligence firms like Arkham and Elliptic, whose analysis has become crucial for both law enforcement and public understanding of major crypto movements. Their ability to trace funds across multiple wallets and identify connections to sanctioned entities demonstrates how transparency in blockchain transactions can work against bad actors.

As regulators worldwide grapple with cryptocurrency oversight, the Chen Zhi operation serves as a stark reminder of the technology’s potential for misuse on a massive scale. The combination of traditional financial crimes like fraud and money laundering with emerging threats like forced labor in crypto scam operations presents a complex challenge that will require coordinated international response and continued development of investigative capabilities.