DOJ Seizes $15B Bitcoin in Cambodian Forced-Labor Scam
On October 14, 2025, the US Department of Justice (DOJ) announced a historic Bitcoin seizure of 127,271 BTC valued at about $15 billion—the largest crypto forfeiture to date. Investigators traced the funds to unhosted wallets controlled by Chen Zhi, aka “Prince Chen,” who allegedly ran forced-labor compounds in Cambodia. Victims were trafficked into romance and investment scams, known as “pig butchering,” to defraud users worldwide. The DOJ enforcement action includes charges of wire fraud and money laundering.
Authorities, working with the Treasury Department and international partners, used blockchain analytics to follow complex on-chain transactions. This Bitcoin seizure underscores enhanced tracing capabilities and the risks of illicit crypto networks. The assets remain in government custody pending forfeiture proceedings. Traders should monitor potential market reactions during asset disposal. This crypto forfeiture signals intensified action against fraud and human trafficking enabled by cryptocurrency.
Bearish
This Bitcoin seizure is likely bearish for BTC in the short term because of the potential downward pressure if the DOJ disposes of seized assets on the open market. Market participants may sell in anticipation of increased supply, driving price volatility. In the long term, heightened enforcement and improved blockchain tracing capabilities could deter illicit activity, but also increase regulatory scrutiny, which may weigh on market sentiment and curb speculative inflows into Bitcoin.