US Government Bitcoin Holdings Surpass $36bn After Historic Seizure

The US government bitcoin holdings just hit a new milestone. Federal authorities now control over $36 billion worth of BTC following a massive forfeiture this week.

On October 14, 2025, the Department of Justice seized 127,271 BTC worth roughly $14 billion. This marks the largest forfeiture in DOJ history. The seizure came from a criminal case against Chen Zhi, a former Chinese national who allegedly ran a sprawling crypto scam operation.

Before this seizure, the US held about 197,354 BTC valued at $22 billion.

The new haul brings total holdings to over 324,000 BTC. At current prices around $113,000 per coin, that’s a significant reserve.

The Case Behind the Record Seizure

Federal prosecutors charged Chen Zhi with wire fraud and money laundering. Court documents reveal he allegedly orchestrated investment scams through a network called the Prince Group. These operations reportedly stole billions from victims.

The schemes went beyond typical fraud. Authorities claim Zhi oversaw forced labor operations across at least ten compounds in Cambodia. Workers were allegedly trafficked and forced to run scam operations targeting Americans and other nationals.

The Treasury Department’s OFAC imposed sanctions on 146 targets linked to the Prince Group. This coordinated action involved the UK government as well. Treasury Secretary Scott Bessent emphasized protecting Americans from foreign scammers who have wiped out life savings.

What This Means for US Government Bitcoin Holdings

This seizure raises questions about what the US will do with its growing BTC stash. Back in August 2025, Bessent stated the government would not buy bitcoin for a strategic reserve. However, these seizures keep adding to federal holdings anyway.

For crypto traders and investors, this development shows how law enforcement is getting better at tracking and seizing digital assets. The blockchain’s transparency helps authorities follow the money trail.

The case also highlights risks in the crypto space. Investment scams continue to target unsuspecting victims. Anyone looking to invest should verify platforms thoroughly and watch for red flags like guaranteed returns or pressure tactics.

As the US government bitcoin holdings grow, the market will watch closely to see if these coins eventually get sold or held long-term.