US Government Seeks to Add $14 Billion in Bitcoin to National Reserves
A US federal court has thrown out an indictment over a massive cryptocurrency fraud scheme that could result in the government adding $14 billion to its national Bitcoin reserves. This development has significant implications for the cryptocurrency market and the US government’s stance on digital assets.
The case involves Chen Zhi, founder and chairman of a Cambodia-based company that was allegedly responsible for orchestrating crypto investment schemes. According to a statement from the U.S. Department of Justice, authorities had filed a forfeiture action against 127,271 Bitcoin (BTC), worth about $14.4 billion at the time of publication.
Civil confiscation lawsuit against 127,271 Bitcoin. Source: U.S. District Court, Eastern District of New York
Sanctions and Forfeiture
The U.S. Treasury Department’s Office of Foreign Assets Control imposed sanctions on Zhi’s company, Prince Holding Group, and its subsidiaries on the same day the indictment was lifted. The US will seek the seizure following Zhi’s sentencing in the U.S. District Court for the Eastern District of New York, where he faces charges of conspiracy to commit wire fraud and money laundering.
Should the court agree following Zhi’s possible conviction, Bitcoin’s confiscation would be one of the most significant cryptocurrency additions to the U.S. strategic reserve since its inception. US President Donald Trump established national Bitcoin and crypto reserves via executive order in March, marking a significant shift in the government’s approach to digital assets.
Implications and Context
This development has sparked interest in the cryptocurrency community, with many speculating about the potential impact on the market. The addition of $14 billion in Bitcoin to the national reserves would be a significant event, and its implications are still being debated by experts. For more information on this developing story, please visit the original source.
