US gov’t seeks to add $14B to crypto reserves as part of forfeiture case

A US national tribunal has unsealed a transgression indictment involving a monolithic cryptocurrency fraud strategy that could effect successful the authorities expanding its nationalist Bitcoin reserves by $14 billion.

In a Tuesday announcement from the US Justice Department, authorities said they had filed a forfeiture ailment against 127,271 Bitcoin (BTC), worthy astir $14.4 cardinal astatine the clip of publication. The Bitcoin was tied to an indictment against Chen Zhi, laminitis and seat of a Cambodia-based institution that was allegedly liable for orchestrating crypto concern schemes.

Civil forfeiture ailment against 127,271 Bitcoin. Source: US District Court, Eastern District of New York

The US Department of the Treasury’s Office of Foreign Assets Control sanctioned Zhi’s company, the Prince Holding Group, and its affiliates connected the aforesaid time the indictment was unsealed.

According to the complaint, the US volition question forfeiture upon Zhi’s condemnation successful the US District Court for the Eastern District of New York, wherever helium faces charges of ligament fraud conspiracy and wealth laundering conspiracy.

If approved by the tribunal pursuing Zhi’s imaginable conviction, the Bitcoin forfeiture would correspond 1 of the astir important additions of cryptocurrency to the US strategical reserve since its establishment. US President Donald Trump set up nationalist Bitcoin and crypto reserves via enforcement bid successful March.

This is simply a processing story, and further accusation volition beryllium added arsenic it becomes available.