US Bolsters National Bitcoin Reserve with $14 Billion BTC Seized from Chinese Fraud Operation

Washington makes massive crypto power play—confiscated Bitcoin becomes strategic national asset.

The $14 Billion Heist Turned Treasury

Federal authorities just transformed illicit cryptocurrency into official US reserves. The staggering Bitcoin haul—seized from an international Chinese scammer—now fortifies America's Strategic Bitcoin Reserve. This isn't just asset seizure—it's geopolitical positioning in the digital currency arena.

From Criminal Hands to Government Vaults

While traditional finance regulators debate cryptocurrency oversight, the US government just executed the ultimate compliance move. They didn't just take the money—they're putting it to work. The $14 billion injection represents one of the largest single additions to any national crypto reserve worldwide.

Strategic Implications Beyond the Balance Sheet

This move signals more than just asset accumulation—it demonstrates sophisticated crypto operational capability. The ability to seize, secure, and repurpose digital assets at this scale shows maturity in government blockchain handling. Meanwhile, Wall Street still struggles with basic custody solutions.

The ultimate irony? Criminal enterprise funding national security—proving once again that in finance, every villain's loss is someone else's gain.

Crypto fraud

According to the court filing, Zhi operated Prince Group, a central player in Cambodia’s underground digital economy.

The entity operated a network of scam compounds that doubled as detention sites for trafficked laborers. Thousands of migrants, lured by fake job ads, were reportedly forced to run fraudulent crypto-investment schemes under threat of violence.

Under Chen’s direction, at least ten major compounds were established, including facilities linked to the Jinbei Hotel and Casino, the Golden Fortune Science and Technology Park, and Mango Park.

Court records indicate that Chen personally kept ledgers detailing each site’s operations, referencing the Chinese phrase “sha zhu,” or “pig-butchering,” which is a term for long-con scams that emotionally manipulate victims before defrauding them.

The US government alleges that Chen and senior executives Leveraged bribes and political influence to evade prosecution, even obtaining advance warnings of planned law enforcement raids.

By exploiting these connections, the group maintained control of billions in illicit crypto flows and entrenched its position within Cambodia’s broader shadow economy.

Huione’s sanctions

Apart from moving to confiscate the illegal funds, the US authorities, acting in tandem with the United Kingdom’s Foreign, Commonwealth, and Development Office (FCDO), also imposed sanctions on Zhen and his related entities.

According to the press statement, OFAC sanctioned 146 individuals and entities tied to the Prince Group Transnational Criminal Organization (TCO), a Cambodia-based syndicate led by Chen Zhi that allegedly operated hundreds of online investment scams targeting Americans and citizens of allied nations.

FinCEN also invoked Section 311 of the USA PATRIOT Act to formally isolate Cambodia’s Huione Group from the US financial system, labeling it a primary conduit for laundering proceeds from crypto fraud and related cybercrime.

US officials said Huione’s networks were instrumental in concealing billions in stolen funds from investors worldwide.