The United States has become one of the largest Bitcoin holders in the world, with its reserves now exceeding 325,000 BTC worth more than $37 billion. The milestone follows the Justice Department’s latest seizure of 127,271 Bitcoin – roughly $15 billion – from Chinese businessman Chen Zhi, marking the biggest cryptocurrency confiscation in American history.

The operation, led by the Department of Justice’s National Security Bureau, uncovered an international fraud network linked to Chen’s Cambodia-based conglomerate, Prince Holding Group. U.S. authorities allege that Chen’s organization operated forced-labor camps running massive “pig-butchering” crypto scams that defrauded victims across more than 30 countries.

While the criminal investigation has drawn attention for its scale, the focus has now shifted toward what the growing U.S. Bitcoin reserve could mean for global markets. Following President Donald Trump’s decision earlier this year to formally establish a national Bitcoin reserve and suspend any future BTC liquidations, Washington’s holdings have effectively become a long-term strategic asset.

This shift represents a dramatic change in attitude: a few years ago, seized Bitcoin was routinely auctioned off by the U.S. Marshals Service. Now, the government appears to be positioning Bitcoin not merely as confiscated property but as a store of value and potential reserve asset – one that could serve as a hedge against currency devaluation or financial instability.

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Analysts note that the U.S. now rivals major institutional holders and corporate treasuries in total Bitcoin ownership, surpassing companies such as MicroStrategy, Tesla, and Bitwise combined. The policy decision to retain Bitcoin rather than sell it suggests a growing recognition of digital assets as part of the broader financial ecosystem.

As for Chen Zhi, U.S. officials allege that his Prince Group used more than 100 shell entities to launder illicit proceeds from crypto scams. The 38-year-old, who renounced his Chinese citizenship and remains in Cambodia, is accused of operating one of Asia’s largest criminal networks.

With its Bitcoin stash now valued at over $37 billion, the United States finds itself in a position few expected – not only as the world’s leading financial regulator but also as one of the biggest Bitcoin holders on the planet.

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