The US government is moving to seize 127,271 Bitcoin worth about $14.2 billion, which investigators say was generated through a cross-border “pig butchering” scam operated by Chinese national Chen Zhi.

If completed, the Bitcoin should be added to the U.S.’s Strategic Bitcoin Reserve according to the terms of Trump’s Executive Order issued earlier this year. However, a lack of formalized policy amid the government shutdown and a ticking clock to ratify could disrupt the plan.

The Executive Order explicitly states,

“The Strategic Bitcoin Reserve will be capitalized with bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings.”

The legal filing, submitted on Oct. 14, outlines a far-reaching criminal enterprise that blended crypto investment fraud, human trafficking, and political corruption.

US Bitcoin Seizure
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Author: Oluwapelumi Adejumo

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