Trump Administration Seizes $15B Bitcoin from Cambodian Cyber Gang - US Bitcoin Reserve Next Stop?

Feds just scored the crypto haul of the decade—$15 billion in Bitcoin ripped from Cambodian cyber criminals.

The Ultimate Digital Asset Grab

Trump's team executed a surgical strike against one of Asia's most sophisticated cyber gangs, recovering enough Bitcoin to make even Wall Street bankers blush. The seizure represents one of the largest digital asset recoveries in history—enough to buy several small countries or fund Elon Musk's next three space missions.

Where's the Bitcoin Headed?

All eyes now turn to Washington. Will these digital billions fuel America's growing Bitcoin reserve strategy? The Treasury Department isn't talking, but crypto markets are already buzzing with speculation. Some see this as validation of Bitcoin's role in national security—others just see the government getting its hands on the good stuff.

This isn't just law enforcement—it's the ultimate proof that digital assets have graduated from dark web novelty to strategic national resource. Because nothing says 'legitimate asset class' like the government fighting criminals to get more of it.

— Watcher.Guru (@WatcherGuru) October 14, 2025

Prosecutors on Tuesday unsealed charges against Chen Zhi, chairman of Cambodia’s Prince Group, accusing him of running large-scale “pig-butchering” scam compounds that trafficked workers and defrauded victims around the world.

At the same time, the Justice Department launched the biggest forfeiture action in US history, targeting roughly 127,271 BTC tied to the network. 

The operation was coordinated with authorities in the United Kingdom, and both countries announced parallel sanctions against the Prince Group and its affiliates. The announcements came on October 14 in Brooklyn and Washington, D.C.

How Did the Prince Group Become the Center of a $15Bn Bitcoin Seizure?

Attorney General Pamela Bondi called the case “one of the most significant strikes” against human trafficking and cyber-enabled financial fraud. The FBI described the takedown as “one of the largest financial fraud operations ever dismantled.” Chen Zhi remains at large.

The size of the seizure has sparked discussion about what the US might do with such a massive Bitcoin stockpile. 

While the government has previously auctioned smaller crypto holdings seized from criminal cases, this amount is historically large. Some observers believe it could test the framework for a future national Bitcoin reserve, an idea gaining quiet traction in Washington.

Prosecutors say the Prince Group held trafficked workers in prison-like compounds and forced them to run large-scale romance and investment scams.

The Justice Department reports that the defendant stored approximately 127,271 BTC in unhosted wallets controlled through private keys held by the defendant. 

Officials called it the largest forfeiture complaint in the department’s history. The government is holding the seized funds until the case is resolved.

In a related move, the US Treasury designated the “Prince Group Transnational Criminal Organization” and sanctioned 146 associated individuals and entities.

It also used a USA PATRIOT Act §311 order. This blocked the Cambodia-based Huione Group from accessing the US financial system. 

The UK followed with its own actions, freezing London properties tied to the network, including a £12M mansion, and sanctioning Chen along with several affiliated companies.

Will the $15B in BTC go into the US Bitcoin Reserve?

President Trump’s March 2025 executive order created the Strategic Bitcoin Reserve (SBR). It directs that the US government’s Bitcoin holdings come from forfeited criminal assets, not taxpayer money. 

Treasury Secretary Scott Bessent reaffirmed that stance, saying the department isn’t purchasing Bitcoin and will rely solely on lawful seizures.

Before the latest action, federal agencies were estimated to already hold between $15Bn and $20Bn worth of Bitcoin from past cases. 

If courts approve today’s forfeiture and finalize victim restitution, authorities could add the seized funds to the SBR. This WOULD follow existing rules.

Senator Cynthia Lummis is a key supporter of formalizing the reserve through legislation. She praised the Justice Department’s work and urged Congress to set clearer rules for handling digital assets. 

Senator Lummis urged officials to safeguard seized Bitcoin and compensate victims. She also called for preserving remaining funds as part of the nation’s long-term digital reserve strategy.

Bitcoin prices showed little immediate reaction, hovering around $112,521. The broader crypto market remained subdued amid ongoing global economic pressures this week.

(Source: Coingecko)