Sen. Lummis reacts to seizure of 127,000 Bitcoin by US Department of Justice

Main highlights

• Sen. Cynthia Lummis said the recent confiscation of 127,000 Bitcoins could “strengthen America’s strategic Bitcoin reserves”
• US authorities say they have seized $15 billion in Bitcoin from a massive Cambodia-based ‘Great Demolition’ scam
• The seizure has prompted calls in Congress for new legislation to regulate digital assets and establish formal procedures for handling seized cryptocurrencies.

Wyoming Sen. Cynthia Lummis responded to one of the largest Bitcoin seizures by a federal agency at the Department of Justice. Approximately $15 billion worth of Bitcoin was seized To stop fraud.

🧵Second, we will codify how seized Bitcoins will be stored, returned to victims, and protected for future generations. Turning the proceeds of crime into an asset that powers the United States’ strategic Bitcoin reserve shows how sound policy can turn fraud into an enduring national value.

— Sen. Cynthia Lummis (@SenLummis) October 14, 2025

With the seizure of this cryptocurrency, she Strengthens America’s Strategic Bitcoin Reserve and “demonstrates how sound policy can turn fraud into enduring national value.”

Sen. Cynthia Lummis also shared two urgent priorities for Congress. She called for the passage of a clear digital asset market structure bill. This allows law enforcement to act decisively against bad actors while protecting innovation. She also said:Second, it codifies how seized Bitcoins will be stored, returned to victims, and protected for future generations. ”

US authorities uncover large-scale fraud and seize 127,000 Bitcoins

October 14th, The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN) announced that they have seized $15 billion worth of Bitcoin. The seizure is one of the largest forfeiture actions in the agency’s history.

“The rapid rise in cross-border fraud is costing Americans billions of dollars and wiping out their savings in minutes,” Treasury Secretary Scott Bessent said in a statement. “The Treasury Department is taking steps to crack down on foreign fraudsters and protect Americans. Working closely with federal law enforcement and international partners like the United Kingdom, Treasury continues to lead efforts to protect Americans from predatory crimes.”

The cryptocurrency was seized from a Cambodian-based man accused of running a large-scale criminal enterprise that organized a “pig butchering” scam.

An indictment charging alleged fraudster Chen Zhi was unsealed in federal court in Brooklyn, New York.

Chen Zhi, who also uses the name “Vincent,” is identified in court documents as the founder and chairman of Prince Holding Group. During the hearing, prosecutors said the multinational group had secretly grown into one of Asia’s largest transnational criminal organizations, with influence in more than 30 countries.

Prince Holding Group is accused of running fraudulent forced labor facilities across Cambodia. People held against their will in these premises were forced to carry out large-scale slaughter scams.

The official document states: “Over the past decade, transnational organized crime groups such as Prince Group TCO have established lucrative cyber fraud operations across Southeast Asia, particularly in Cambodia. Prince Group TCO remains a dominant player in Cambodia’s fraud economy and has controlled billions of dollars worth of illicit financial flows.”

U.S. Attorney Joseph Nocera said Chen Zhi was directly involved in one of the largest investment frauds in history. He said: “He orchestrated the largest investment fraud operation in history and fueled an illegal industry that has reached rampant proportions.”

He added: “Prince Group’s investment fraud has caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of people who were trafficked and forced into labor against their will.”

The official statement reads: “Individuals were held against their will at a facility involved in a cryptocurrency investment fraud scheme known as the ‘pig butchering’ scam that stole billions of dollars from victims in the United States and around the world.”

What is the “pig butchering” scam?

In this scam, criminals trick people on social media and messaging applications. Scammers take the time to build relationships with their victims and gain their trust with false promises that their crypto transfers will be invested and bring in large profits.

In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators. Court documents detail that the group has completed two facilities with 1,250 cell phones managing 76,000 accounts on the popular social media platform.