$15 Billion Bitcoin Theft Tied to Iran, China Seized

The U.S. government announced in October 2025 that it had seized about 127,271 bitcoins worth around $15 billion — the biggest crypto seizure in U.S. history.

These bitcoins were linked to a man named Chen Zhi, who ran a big company called Prince Group, based in Cambodia and involved in a lot of online scams.

The U.S. Department of Justice says Chen Zhi’s group tricked people into investing in fake schemes and then stole their money. They also say the group used forced labor to run those scams, including something called “pig butchering” scams — long cons where victims are emotionally manipulated into investing more and more until their money is gone.

So the U.S. government filed an indictment (a formal criminal charge) against him and seized the bitcoins as part of that case.

Where the bitcoin originally came from

Here’s where it gets a bit confusing:

Back in December 2020, a huge amount of bitcoin (the same number — 127,272) was stolen from a big bitcoin mining operation called LuBian, which had mining facilities in China and Iran.
At the time of the theft, those coins were worth about $3.5 billion, but since bitcoin’s price went up a lot over the years, they’re now worth around $15 billion.

The U.S. government says those stolen coins ended up in wallets linked to Chen Zhi. That’s why they were able to take them — because authorities tied them to the criminal case.

China’s reaction

A Chinese cybersecurity agency later claimed that the way the bitcoin was stolen looked like a state‑level hack, suggesting the U.S. might have been involved in the original theft back in 2020 — not just law enforcement taking criminal proceeds. They highlight the long gap where the coins sat untouched, which is unusual for regular hackers.

But the U.S. government has not publicly agreed with that claim.

Why this matters

This seizure is the largest crypto asset confiscation ever by U.S. authorities.
It shows how law enforcement is tracking crypto transactions and trying to tie them to crimes like fraud and money laundering.
It also has sparked debate and accusations between governments about how the original bitcoin was lost and who has the right to it.

Watch Also: https://www.youtube.com/@TravelsofTheWorld24