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|3 min ReadU.S. bitcoin stash swells to $36B after record DOJ seizure
Lucca Menezes
Senior Analyst
Published
Jan 16, 2026
A record forfeiture, a bigger government stack
The U.S. government’s bitcoin holdings jumped past 14 billion at recent prices — in what officials called the largest forfeiture action in Department of Justice history. “The complaint is the largest forfeiture action in the history of the Department of Justice,” the U.S. Attorney’s Office for the Eastern District of New York said.
Before this action, U.S. reserves sat near $22 billion (about 197,354 BTC), according to Arkham Intelligence. With the new haul, Washington’s stack is bigger, the message louder. Enforcement is here, in size. Everybody knows it.
Inside the indictment: wire fraud, money laundering, forced labor
Prosecutors also unsealed charges against former Chinese national Chen Zhi, accusing him of running a Cambodia-based crypto scam network tied to forced labor, wire fraud, and money laundering conspiracy. They sought forfeiture of the 127,271 BTC alongside the charges, per a court filing.
The allegations go beyond investment fraud. The filing describes “fraud involving the solicitation for eventual blackmail of sexually explicit materials, often from minors—money laundering, various frauds and rackets, corruption, illegal online gambling,” and “industrial-scale trafficking, torture, and extortion of enslaved workers” across at least ten scam compounds in Cambodia.
On the sanctions front, the Treasury Department’s OFAC and FinCEN, working with the U.K.’s Foreign, Commonwealth & Development Office, announced sweeping sanctions on 146 targets linked to the Prince Group Transnational Criminal Organization allegedly led by Chen Zhi.
“The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes,” Treasury Secretary Scott Bessent said. “Treasury is taking action to protect Americans by cracking down on foreign scammers… and will continue to lead efforts to safeguard Americans from predatory criminals.”
What it means: cleaner float, bigger deterrent, policy heat
This is a huge move with simple signals. First, scale. A single case just added almost two-thirds of the government’s prior BTC stack. Second, deterrence. When offenders lose coins at this magnitude, it raises the cost of crime. Third, market plumbing. Seizures can reduce tainted off-exchange supply, improving “float quality” once cases settle. That’s healthy for institutions watching compliance risk.
Context matters. Bitcoin was recently quoted near $108,407.69. Price will swing. But enforcement clarity can support depth over time. In August, officials said the U.S. would not buy bitcoin for a strategic reserve. That stance stands. The stash grows through seizures, not purchases. The policy is consistent. The message is clear.
Big enforcement. Bigger holdings. A cleaner market is go
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.