Prince Group Denies $15B Bitcoin Seizure Seeks Exoneration
Cambodia’s Prince Holding Group filed a formal statement via Boies Schiller Flexner LLP on November 11, flatly denying involvement in any illicit activity and condemning the U.S.-led $15 billion Bitcoin seizure as illegal. The announcement asserts that neither Prince Group nor its founder Chen Zhi participated in fraud, money laundering or forced-labor schemes. In October, the U.S. Department of Justice indicted Chen Zhi on charges ranging from wire fraud to human trafficking, while the Treasury labeled the firm a transnational criminal organization, freezing assets worldwide. Prince Group has also submitted an emergency motion to the U.S. District Court for the Eastern District of New York, demanding detailed blockchain tracing evidence to justify the Bitcoin seizure. The group claims most of the 12,700 BTC were stolen during a 2020 hack and that federal authorities have had ample time to trace the funds since July 2024. Outcome hinges on the U.S. government’s ability to prove on-chain links between seized Bitcoin and alleged crimes.
Bearish
Massive government seizures of Bitcoin assets typically heighten regulatory scrutiny and dampen market sentiment in the short term. The $15 billion Bitcoin seizure linked to Prince Group underscores the risk of aggressive enforcement against alleged crypto crime, which may trigger selling pressure or price volatility. Similar past events—such as the U.S. DOJ’s seizure of Silk Road funds or Mt. Gox asset freezes—caused temporary dips as traders reacted to intensified legal intervention, though long-term fundamentals remained intact. Here, uncertainty over evidence and potential protracted legal battles could sustain bearish sentiment until clarity emerges. However, if Prince Group successfully challenges the seizure, the market could rebound, reducing fears of asset confiscation. Overall, traders should brace for near-term downside risk driven by legal ambiguity and elevated regulatory oversight.