Record BTC Forfeiture: DOJ Seizes 127,271 BTC Charges Chen Zhi
The DOJ has filed a civil action seeking forfeiture of 127,271 BTC—valued at $15 billion—in the largest-ever BTC forfeiture. Prosecutors allege Prince Holding Group chairman Chen Zhi led a multi-year pig-butchering scam and forced-labor crypto fraud operation in Cambodia. The DOJ’s BTC forfeiture action is paired with US Treasury and UK sanctions against the Prince Group as a transnational criminal organization. If upheld, this record BTC forfeiture could set a legal precedent for tracing and recovering illicit crypto assets, increase compliance pressure on exchanges and OTC brokers, and reshape regulatory and market dynamics in Southeast Asia.
Bearish
Record BTC forfeiture and criminal charges highlight growing enforcement risks. In the short term, traders may react negatively to the DOJ’s successful seizures, fearing further supply shocks and heightened scrutiny on exchanges. The looming asset distribution could increase sell pressure in spot and OTC markets. Over the long term, stronger legal precedents and compliance measures may stabilize markets but the immediate impact remains bearish for Bitcoin.