US Seizes $14.2B Bitcoin in Pig-Butchering Case

The $14.2 billion Bitcoin seizure is directly tied to LuBian, once one of China’s largest Bitcoin mining operations with facilities extending to Iran. According to the Department of Justice filing, LuBian was allegedly funded and operated using profits from criminal activities including scams, human trafficking, and sophisticated pig-butchering schemes. These schemes involve perpetrators building fake online relationships with victims before convincing them to invest in fraudulent cryptocurrency platforms, ultimately disappearing with their assets.

Chen Zhi, chairman of Cambodia-based Prince Group, stands at the center of this criminal network. The DOJ alleges that Zhi operated large-scale human-trafficking and pig-butchering schemes across Asia that resulted in billions of dollars in losses for victims worldwide, including individuals in New York. Despite facing charges of wire fraud and money laundering conspiracy, Zhi remains at large while prosecutors claim illicit proceeds were used to purchase luxury yachts, private jets, artwork, and vacation properties.

The seized Bitcoin fortune originates from LuBian mining pool, which was subject to what was then considered the largest crypto heist ever in 2020. During that incident, hackers looted Bitcoin worth approximately $3.5 billion at the time from the platform. The DOJ’s current filing alleges that LuBian itself was criminal in nature, funded entirely by proceeds from illegal activities rather than legitimate mining operations.

This revelation adds a new dimension to the 2020 heist, raising questions about whether the massive theft represented a transfer of criminal assets between bad actors or potentially an early government intervention. The blockchain analytics platform Arkham confirmed that the stolen digital assets are now in the custody of the U.S. government, marking one of the biggest additions to U.S. crypto reserves since their establishment in March under President Donald Trump’s executive order.

The DOJ’s filing leaves critical questions unanswered about how U.S. authorities gained control of the Bitcoin wallets. The document provides no clarification on whether the private keys were hacked, voluntarily surrendered, or if the 2020 incident represented a covert U.S. operation. This ambiguity has sparked intense speculation within the cryptocurrency investigation community about the methods employed by law enforcement.

On-chain investigator ZachXBT revealed that wallet addresses listed in the government’s $14 billion seizure had been flagged in a Milky Sad report approximately two years ago for having exposed private keys. This technical vulnerability suggests that either a third party hacked the wallets on behalf of U.S. authorities or government agencies executed the transfer themselves using the compromised security. The document also details that the cryptocurrency was moved between June and July 2024, mentioning an incident involving a finance staff member who reportedly fled with funds and attempted to hide, potentially linked to the Bitcoin transfers during that period.

This record-breaking seizure represents a significant escalation in the U.S. government’s capability to track, seize, and control illicit cryptocurrency assets. The successful forfeiture of $14.2 billion in Bitcoin demonstrates growing sophistication in blockchain investigation techniques and interagency cooperation in combating crypto-related financial crimes. The case establishes important precedents for how law enforcement can leverage technical vulnerabilities in criminal cryptocurrency operations.

The massive scale of this seizure also highlights the evolving nature of financial crime in the digital age, where traditional criminal enterprises have adapted to utilize cryptocurrency for money laundering and asset concealment. For victims of pig-butchering schemes and human trafficking, the forfeiture action represents potential hope for restitution, though the complex international nature of the case and Zhi’s status as a fugitive complicate recovery efforts. As blockchain analytics platforms like Arkham continue to develop more sophisticated tracking capabilities, the barrier to successfully laundering large cryptocurrency sums through traditional mixing services appears to be rising significantly.