Key Highlights
- Senator Cynthia Lummis says that the latest forfeiture of 127,000 Bitcoin can “strengthen America’s Strategic Bitcoin Reserve”
- U.S. authorities announced the seizure of $15 billion in Bitcoin from a massive ‘big butchering’ scam based in Cambodia
- The seizure has prompted calls in Congress for new laws to regulate digital assets and establish an official procedure for handling seized cryptocurrency
Senator from Wyoming, Cynthia Lummis, has responded to one of the biggest seizures of Bitcoin by the Department of Justice, where federal agencies seized about $15 billion worth of Bitcoin after foiling a scam.
🧵Second, codifying how seized bitcoin is stored, returned to victims, and safeguarded for future generations. Turning criminal proceeds into assets that strengthen America’s Strategic Bitcoin Reserve shows how sound policy can turn wrongdoing into lasting national value.
— Senator Cynthia Lummis (@SenLummis) October 14, 2025
She affirmed that this seizure of cryptocurrency will strengthen America’s Strategic Bitcoin Reserve and “shows how sound policy can turn wrongdoing into lasting national value.”
Senator Cynthia Lummis also shared two urgent priorities for Congress. She called for passing clear digital asset market structure legislation. This would ensure law enforcement can act decisively against bad actors while protecting innovation. She also said, “Second, codifying how seized bitcoin is stored, returned to victims, and safeguarded for future generations.”
U.S. Authorities Bust Massive Scam, Seize 127,000 Bitcoin
On October 14, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) announced that they had seized a substantial $15 billion worth of Bitcoin. This seizure is one of the largest forfeiture actions in the agency’s history.
Secretary of the Treasury Scott Bessent said in the official document, “The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes. Treasury is taking action to protect Americans by cracking down on foreign scammers. Working in close coordination with federal law enforcement and international partners like the United Kingdom, Treasury will continue to lead efforts to safeguard Americans from predatory criminals.”
The cryptocurrency was seized from a man accused of running a massive criminal enterprise based in Cambodia that orchestrated a “pig butchering” scam.
An indictment charging the alleged scammer, Chen Zhi, was made public in a federal court located in Brooklyn, New York.
Chen Zhi, who also uses the name “Vincent,” is identified in court documents as the founder and chairman of the Prince Holding Group. During the hearing, prosecutors stated that this multinational group has grown in secret into one of Asia’s largest transnational criminal organizations with reach in over 30 countries.
Prince Holding Group is accused of running forced-labor scam compounds throughout Cambodia. Individuals held against their will in these compounds were forced to carry out the big butchering scams.
The official document stated that “Over the course of the past decade, transnational organized criminal groups, like Prince Group TCO, have established profitable cyberfraud operations across Southeast Asia, particularly in Cambodia. Prince Group TCO remains a dominant player in Cambodia’s scam economy and has controlled illicit financial flows of billions of dollars.”
U.S. Attorney Joseph Nocella stated that Chen Zhi is directly involved in one of the largest investment fraud operations in history. He stated that Zhi “directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions.”
“Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will,” he added further.
The official statement reads, “Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as ‘pig butchering’ scams, that stole billions of dollars from victims in the United States and around the world.”
What is “Pig Butchering” Scam
In this scam, wrongdoers trick people present on social media and messaging applications. The fraudsters would build relationships with their victims over time, earning their trust with false promises that cryptocurrency transfers would be invested and produce large profits.
In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators. Court documents detailed that the group completed two facilities staffed with 1,250 mobile phones that controlled 76,000 accounts on a popular social media platform.
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