What $14B crypto forfeiture says about the U.S. bitcoin strategy
A massive Bitcoin seizure tied to a global scam could push America’s holdings past $36 billion and reveal how its approach to digital assets is changing.
Money doesn’t grow on trees, but for the U.S. government, a crypto scam might just make it feel that way. The country’s Bitcoin holdings could be set for a major boost following a new Justice Department forfeiture complaint linked to a “pig butchering” scheme—one of the most elaborate and manipulative types of crypto fraud.
For those unfamiliar, pig butchering is a scam where fraudsters build trust with victims over time, often posing as investors or romantic partners, before convincing them to make large, devastating deposits. It’s long, psychological, and painfully effective, for the scammers, at least.
A recent report from the U.S. Justice Department shows authorities have filed a forfeiture complaint against 127,271 Bitcoin (BTC), worth around $14.4 billion at the time of writing. The Bitcoin is tied to an indictment against Chen Zhi, founder and chair of a Cambodia-based company allegedly behind the schemes. The U.S. will seek forfeiture if Zhi is convicted, with charges including wire fraud conspiracy and money laundering conspiracy.
David Adubiina
Since Trump established the Strategic Bitcoin and Digital Asset Reserve in March through executive order, the U.S. government’s Bitcoin stockpile has quietly grown to include around 198,000 BTC, valued at over $22 billion. If the crypto seized in Zhi’s case is eventually added, the total could rise to roughly 325,000 BTC, worth about $36 billion—a milestone that took MicroStrategy nearly five years to reach through continuous accumulation.
When Trump announced the creation of the reserve, many saw it as symbolic, a political gesture more than a serious economic move. Yet in recent months, it has become far more strategic. Seizures from cases like Silk Road, Bitfinex, and other high-profile investigations already make the U.S. one of the largest sovereign Bitcoin holders. The Zhi case could make it the largest.
What does this mean for U.S. crypto strategy?
If the government decides to retain the seized Bitcoin rather than auction it, the U.S. will overtake China’s 194,000 BTC holdings and surpass several major institutional investors. It also signals a broader policy shift—from liquidating seized assets to potentially holding them as part of a long-term digital reserve.
That said, there’s still uncertainty. The Department of Justice has historically auctioned confiscated crypto, not stored it. Whether the Zhi assets will be folded into the strategic reserve or treated as traditional forfeiture remains to be seen. Meanwhile, some lawmakers, including Senator Cynthia Lummis, have floated ideas like converting portions of U.S. gold reserves into Bitcoin. But that proposal would require new congressional approvals.
Either way, the U.S. is quietly becoming a major player in the digital asset space. Between past seizures and this potential windfall, the government’s Bitcoin holdings could soon exceed $36 billion, positioning it among the largest global crypto stakeholders—alongside early adopters and nation-states betting long on digital wealth.
Overall, America’s growing Bitcoin stash might have started as a byproduct of criminal investigations, but it’s quickly turning into a geopolitical advantage. One that could redefine how nations treat digital assets in the years ahead.
David Adubiina
