U.S. Justice Department Escalates Global Effort to Dismantle Major Cryptocurrency Fraud

The U.S. Department of Justice has launched a massive cryptocurrency seizure operation, targeting over 127,000 Bitcoins worth approximately $12 billion in a landmark fraud case. On October 14, 2025, federal authorities initiated proceedings to confiscate digital assets linked to an extensive scam network led by Chen Zhi, marking one of the largest cryptocurrency enforcement actions in DOJ history.

This unprecedented Bitcoin seizure demonstrates heightened regulatory scrutiny in the cryptocurrency market, potentially impacting investor sentiment and blockchain security protocols. The $12 billion confiscation represents a significant portion of circulating Bitcoin supply, which could influence cryptocurrency prices and market volatility in the short term.

The DOJ's aggressive stance against cryptocurrency fraud signals increased enforcement efforts targeting digital asset crimes, affecting DeFi platforms and crypto exchanges globally. This major legal action reinforces the importance of regulatory compliance in the evolving cryptocurrency landscape, as authorities continue dismantling sophisticated fraud schemes exploiting blockchain technology.

Market analysts anticipate this high-profile case will strengthen institutional investor confidence while potentially creating temporary price pressure on Bitcoin and other major cryptocurrencies as the justice system addresses digital asset criminal activity.