DOJ Seizes About $15 Billion in Bitcoin Allegedly Linked to Cambodian Forced-Labor Crypto Network

• Largest DOJ crypto forfeiture: 127,271 BTC (~$15 billion) seized from wallets tied to a transnational forced‑labor fraud network.

• Alleged leader Chen Zhi (aka “Prince Chen”) faces charges including conspiracy to commit wire fraud and money laundering; charges unsealed in New York.

• The U.S. Department of Justice, U.S. Department of the Treasury and international partners coordinated tracing, sanctioning and asset seizure efforts.

DOJ seizes $15 billion in Bitcoin tied to Prince Chen forced‑labor crypto scams; read the tracing details, legal charges, and global enforcement implications. Read the full report.

By COINOTAG — Published October 14, 2025. Updated October 14, 2025.

What is the DOJ seizes $15 billion in Bitcoin case?

DOJ seizes $15 billion in Bitcoin refers to a forfeiture announced October 14, 2025, in which U.S. prosecutors say they traced and secured approximately 127,271 BTC tied to an alleged global forced‑labor and crypto fraud network controlled by Chen Zhi. The seizure is now in U.S. custody pending forfeiture proceedings.

Who is Prince Chen and how did the forced‑labor crypto scam operate?

Chen Zhi — identified in filings as “Prince Chen” or “Vincent” and chairman of Prince Holding Group — is accused of running a sprawling criminal enterprise using real estate and consumer service fronts to mask coercive scam compounds across Cambodia. According to the U.S. Department of Justice indictment unsealed in New York, thousands of trafficked workers were forced into producing romance and investment scams that funneled proceeds into hundreds of blockchain addresses.

Prosecutors allege victims were manipulated through “pig‑butchering” style crypto investment scams and other frauds that converted illicit proceeds into Bitcoin. Investigators report evidence of physical coercion, wage confiscation, and imprisonment inside guarded compounds; the alleged scheme operated at scale, victimizing people across the U.S., Europe and Asia.

Tracing the funds: how 127,271 BTC was identified

Per the DOJ forfeiture filing, tracing teams followed complex on‑chain activity through thousands of addresses, observing layering and consolidation techniques designed to obscure provenance. The filing states that the addresses ultimately consolidated into a set of unhosted wallets controlled by the network, which U.S. authorities now assert contain ~127,271 BTC, valued at about $15 billion at the time of seizure.

The investigation included blockchain analytics, international law enforcement cooperation, and assistance from partners in the U.K. and the Isle of Man. Publicly available commentary from independent on‑chain analysts, including ZachXBT, highlighted prior reports suggesting some listed addresses had vulnerable private keys; U.S. officials maintain the assets were secured and are now under government custody pending proceedings.

Legal and regulatory context

The case combines criminal charges — conspiracy to commit wire fraud and money laundering — with administrative actions: the U.S. Department of the Treasury (including OFAC) designated Prince Group and affiliated entities as transnational criminal organizations and imposed sanctions. The coordinated enforcement demonstrates a cross‑agency approach pairing criminal forfeiture tools with financial sanctions to disrupt large‑scale crypto‑enabled exploitation.

U.S. Attorney General Pamela Bondi said, “Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber‑enabled financial fraud.” That statement underscores the dual law‑enforcement and human‑rights framing of the enforcement action.

Frequently Asked Questions

How did U.S. authorities trace 127,271 BTC to Chen’s network?

Investigators used blockchain analytics to follow transaction flows across thousands of addresses, identified consolidation points into unhosted wallets, and combined on‑chain evidence with intelligence from international partners and traditional investigative methods to link wallet controls to the alleged network. This hybrid approach produced the evidentiary basis for the forfeiture filing.

What will happen to the seized Bitcoin now?

The seized Bitcoin is in U.S. government custody pending formal forfeiture proceedings. If the court grants forfeiture, the Department of Justice will follow statutory procedures for disposition, which can include retention for law‑enforcement use, sale, or other court‑approved actions consistent with federal asset‑forfeiture law.

Key Takeaways

• Historic forfeiture: The DOJ seized ~127,271 BTC (~$15 billion), marking the largest crypto seizure in department history.
• Transnational enforcement: The action combined criminal indictments, Treasury sanctions (OFAC), and international cooperation with partners in the U.K. and Isle of Man.
• Operational impact: The case highlights heightened capacity to trace complex on‑chain laundering and signals intensified enforcement against crypto‑enabled human‑trafficking and fraud syndicates.

Conclusion

The DOJ’s seizure of approximately 127,271 BTC (~$15 billion) tied to an alleged forced‑labor crypto fraud network demonstrates a significant escalation in U.S. enforcement capacity against large‑scale illicit crypto operations. With criminal charges against Chen Zhi and coordinated Treasury sanctions, the case will test legal mechanisms for handling massive crypto forfeitures and may reshape compliance expectations across the industry. For ongoing coverage and official filings, consult U.S. Department of Justice and Treasury statements and COINOTAG reporting for updates.

Author: COINOTAG | Published: October 14, 2025 | Updated: October 14, 2025