US DOJ Files Largest-Ever $15 Billion Bitcoin Forfeiture Lawsuit

The United States Department of Justice (DOJ) has filed a significant $15 billion lawsuit to seize 127,271 BTC. The lawsuit, filed on October 14, 2025, in a New York court, targets a global scam network allegedly led by Cambodian businessman Chen Zhi.

The scams tricked victims worldwide into losing billions through fake romance and investment schemes. The culprits are laundering money through Chinese traders and Cambodian companies. The DOJ’s action is a significant move in the fight against crypto-related fraud.

Largest Crypto Forfeiture Lawsuit

The DOJ has identified Zhi, chairman of Cambodia’s Prince Group, as the key figure in the “pig butchering” scam. The scheme exploited dating apps to form emotional connections, luring victims into fake crypto investments. Scammers funneled the stolen funds through shell companies in China, amassing 127,271 BTC, valued at $15 billion.

The complaint utilizes civil forfeiture laws to seize assets without immediate charges, exploiting Bitcoin’s traceable blockchain. Zhi’s network reportedly operated through companies in Cambodia, which made it easier to handle illegal money due to relaxed rules.

The case will be heard in the Eastern District of New York, known for its expertise in international finance. Winning the forfeiture could help start extradition efforts against Chen. Victims might have chances to recover some of their losses, although getting their money back could be difficult due to the scam’s global reach.

Market Impact and Enforcement Efforts

The proposed seizure of $15 billion in digital assets, the largest attempt ever to take crypto assets, could significantly impact the market, as previous government auctions have caused price changes. For example, the sale of $6.5 billion in bitcoin from Silk Road in January 2025 led to a 3% drop in the market.

However, the new Trump administration’s pro-crypto policies, such as a national Bitcoin reserve, might help ease aggressive selling strategies. The DOJ’s “Operation Level Up” is a major effort to combat crypto fraud.

Meanwhile, there has been a rise in pig butchering scams, prompting agencies to collaborate, with the Eastern District taking the lead in prosecutions. Successful cases could increase federal revenue, but poorly timed actions might disrupt the market. Ongoing investigations could result in criminal charges and change how the world enforces crypto laws.

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