Record Bitcoin Seizure: US Seizes 127,000 BTC from Chen Zhi
On October 14, 2025, US authorities completed a record Bitcoin seizure of 127,000 BTC (≈$15 billion) tied to Chen Zhi’s so-called “pig butchering” fraud network. Prosecutors in Brooklyn traced the stolen coins through blockchain analysis, exposing a money-laundering operation that used fake investment platforms, forced labour, and the Lubian mining pool exploit in 2020. Dormant since the theft, these Bitcoins were flagged moving in July 2024 by chain intelligence firms. US agencies then exploited weak PRNG-generated private keys to secure and forfeit the assets. The US Treasury’s Office of Foreign Assets Control (OFAC) has also sanctioned Chen Zhi’s entities, blocking further transactions. This landmark Bitcoin seizure highlights the growing effectiveness of crypto enforcement and on-chain forensics. Traders should monitor its impact on market liquidity, sentiment, and future regulatory action.
Neutral
While a record Bitcoin seizure underscores the effectiveness of on-chain forensics and regulatory enforcement, it does not directly alter Bitcoin’s circulating supply, as seized coins remain under government control. In the short term, traders may experience heightened caution due to increased regulatory scrutiny, potentially leading to temporary volatility. Over the long term, however, stronger enforcement could bolster market confidence by deterring illicit activity. Overall, this news is unlikely to shift Bitcoin’s prevailing supply-demand dynamics and is expected to have a neutral impact on price.