A federal court in the United States has revealed a criminal indictment linked to a significant cryptocurrency fraud operation that may lead to an increase of $14 billion in national Bitcoin reserves.
In a notice released on Tuesday by the US Justice Department, officials announced that they had initiated a forfeiture complaint for 127,271 Bitcoin (BTC), valued at approximately $14.4 billion at the time of writing. This Bitcoin is associated with an indictment against Chen Zhi, the founder and chairman of a Cambodia-based firm allegedly involved in orchestrating cryptocurrency investment scams.
The Treasury Department’s Office of Foreign Assets Control imposed sanctions on Zhi’s company, the Prince Holding Group, as well as its affiliates on the same day the indictment was made public.
The complaint states that the US will seek forfeiture following Zhi’s conviction in the US District Court for the Eastern District of New York, where he is charged with wire fraud conspiracy and money laundering conspiracy.
If the court approves it after Zhi’s potential conviction, the Bitcoin forfeiture would mark one of the largest increases of cryptocurrency to the US strategic reserve since its creation. In March, US President Donald Trump established national Bitcoin and crypto reserves through an executive order.
This is an evolving story, and more details will be provided as they become available.
