Largest asset seizure in U.S. history, but a long road ahead for victims

Now that five months have passed since the largest asset seizure in history announced by the U.S. Department of Justice in October of last year, concerns are growing that it could go in a direction other than providing relief to victims. Although 127,271 bitcoins linked to the Cambodia-based Prince Group have been seized—valued at $15 billion at the time, equivalent to about $9 billion today—claims by lawyers representing hundreds of victims are being quickly dismissed.

“By dismantling a criminal empire built on forced labor and deceit, we are sending a clear message that America will do everything in its power to protect victims, recover stolen assets, and punish those who exploit the vulnerable,” U.S. Attorney General Pam Bondi declared at the time of the announcement. However, to date, no specific plans regarding the direction of the confiscated funds have been made public.

Why It Matters: Structural Limitations of Relief for Victims of Cryptocurrency Crimes

This incident highlights the structural difficulties faced by victims of cryptocurrency fraud. According to the investigative report 'The Coin Laundry' published by the International Consortium of Investigative Journalists (ICIJ) and 36 partner media outlets in November 2024, victims of cryptocurrency fraud are experiencing extreme difficulties in recovering their funds. While criminals quickly launder funds through secret cryptocurrency wallets, reports to investigative agencies often do not even receive a response.

“The government is providing no real path to returning the seized funds to their rightful owners,” said Daniel Thornburgh, a lawyer for the victims. What is more concerning is the possibility that these funds will be put into the national Strategic Bitcoin Reserve promoted by President Trump. This is a policy that the cryptocurrency industry has actively supported.

“If this happens, victims will once again be victimized by their own government,” Thornburg warned.

When did this trend start?: The full story of the Prince Group incident

The charges against Prince Group founder Chen Zhi stem from operating a transnational criminal organization that targeted victims around the world. According to prosecutors, the organization committed industrial-scale fraud through forced labor in fraudulent workshops called "scam compounds."

After Prince Group was sanctioned by the US and UK, Cheonji was arrested in Cambodia and transferred to China in January 2026. However, key information about when and how the U.S. government secured Bitcoin is still not disclosed. The Justice Department declined to comment, and the Chinese government recently accused the United States of "stealing" the cryptocurrency through sophisticated hacking.

Questions are also being raised about the evidence included in the indictment. ICIJ confirmed that one of the photos included in the indictment - showing a man tied to a chair - was presented as showing violent methods by Prince's group, but its authenticity and context needed to be verified.

Future outlook [AI analysis]

Victims' lawyers and advocacy groups are calling for the establishment of a 'Special Victims Fund' to manage the historic amount of seized assets. They argue that this method will provide a clearer path for compensation to victims.

However, in a situation where the current administration is strengthening cryptocurrency-friendly policies, it is difficult to rule out the possibility that the seized Bitcoins will be diverted into national reserve assets. If a decision is made in this direction, a serious blow to the credibility of the cryptocurrency crime victim relief system is expected to be inevitable.

Meanwhile, this incident once again highlights the need for an international cooperation system to investigate cryptocurrency crimes and provide relief to victims. Unless governments and investigative agencies in each country establish transparent handling of confiscated assets and priority compensation for victims, the suffering of victims of cryptocurrency crimes is likely to continue.