The United States Government is set to dramatically increase its Bitcoin (BTC) holdings in a budget-neutral way. On Tuesday, the Department of Justice (DoJ) formally indicted Chen Zhi, the founder and chairman of Prince Holding Group, with wire fraud and money laundering conspiracy.
While Zhi remains at large, the U.S. government announced that it is in control of about 127,271 Bitcoins, valued at about $15 billion at press time. Notably, the U.S. government is in possession of private keys to a crypto wallet that was previously unhosted.
At the time of this writing, it remains unclear how the United States government got custody of the private keys to the wallet holding the illicit BTCs.
Following the seizure of Zhi’s Bitcoin by the DoJ, the U.S. government is set to increase its holdings for the strategic BTC reserve (SBR) to 324,625 BTCs, valued at about $36.5 billion. Scott Bessent, the current Secretary of the Treasury, previously stated that the U.S. government is considering adding more Bitcoins to its SBR in a budget-neutral way.
“Under Section 3(d) of the SBR Executive Order, any coins that can be traced to identifiable victims must first be returned to them. But for the remainder, which would otherwise sit idle or be liquidated, the SBR ensures that Bitcoin recovered from atrocities like pig-butchering is preserved as a strategic national asset,” Zach Shapiro, managing partner at Rain Law, noted.
According to on-chain data analysis from Arkham Intelligence, the U.S. government transferred $75 million in BTCs seized from the Potapenko/Turogin case to a new wallet. The movement sparked fear of potential Bitcoin sale or liquidation to reimburse victims.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Amid the ongoing shutdown of the United States government, which has resulted in a lack…
Crypto traders may have just caught a quiet but powerful signal for the next big…
Bitcoin traders are on edge as the market nears what could be the final stage…
The U.S. government has made one of its largest cryptocurrency seizures ever, 127,271 Bitcoin, worth…
Despite facing increased scrutiny from U.S. regulators, the DeFi sector continues to grow rapidly, with…
Dexsport, the industry-leading GambleFi platform operating since 2022, has unveiled a brand-new package of promotions…
