Did The US Just Stack 127,000 Bitcoin? Sen. Lummis Says Hold

US Senator Cynthia Lummis (R-WY) on Tuesday praised the Trump administration’s coordinated crackdown on the Prince Group, a Cambodia-based conglomerate that US authorities allege ran forced-labor “pig-butchering” cyber-fraud compounds and laundered prison proceeds via bitcoin at unprecedented scale.

A Win For The US Strategic Bitcoin Reserve?

Federal prosecutors in Brooklyn unsealed an indictment charging Prince Group chairman Chen Zhi with wire-fraud and money-laundering conspiracies, whereas the Justice Division filed a civil forfeiture grievance in opposition to roughly 127,271 BTC—about $14–$15 billion at present costs—now in US authorities custody. The Treasury Division, in parallel, designated Prince Group a transnational prison group and moved to sever the Huione Group from the US monetary system.

“One other @POTUS win and a victory for human rights, monetary integrity, and American management,” Lummis wrote on X. In a thread highlighting the dimensions of the crypto takedown, she added: “The seizure of 127,000 bitcoin underscores two pressing priorities for Congress: first, passing clear digital asset market construction laws to make sure legislation enforcement can act decisively in opposition to dangerous actors whereas defending innovation… Second, codifying how seized bitcoin is saved, returned to victims, and safeguarded for future generations. Turning prison proceeds into property that strengthen America’s Strategic Bitcoin Reserve reveals how sound coverage can flip wrongdoing into lasting nationwide worth.”

The underlying case is sprawling. Prosecutors say Chen directed Prince Group’s community of Cambodian compounds the place trafficked staff—detained and abused—have been compelled to run on-line funding and romance-bait frauds, siphoning billions from US and world victims. The EDNY submitting describes the bitcoin cache as proceeds and instrumentalities of the schemes that Chen beforehand managed through unhosted wallets; it calls the motion “the most important forfeiture motion within the historical past of the Division of Justice.”

The information ricocheted via crypto-forensics circles. Arkham, which tracks government-linked wallets, said: “The US Authorities has submitted right now a submitting for the forfeiture of 127,271 $BTC… These Bitcoins are actually confirmed to be below US Authorities management. It’s the most important forfeiture case of all time.” Whereas on-chain analytics companies don’t decide authorized possession, their affirmation that the property moved to US-controlled addresses aligns with the Justice Division’s representations to the courtroom and Treasury’s sanctions actions.

Does The US Authorities Have To Promote?

The instant coverage query for markets is whether or not the administration will promote—or maintain—this bitcoin. Right here, the reply is extra constrained by legislation and course of than by politics. The Trump White Home’s March 6, 2025 government order (EO 14233), “Institution of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile,” created a framework below which the reserve is initially capitalized with bitcoin “owned by the Division of the Treasury that was lastly forfeited as a part of prison or civil asset forfeiture proceedings or in satisfaction of any civil cash penalty.”

Below EO 14233, authorities BTC positioned into the Strategic Bitcoin Reserve “shall not be offered” besides when the Treasury workouts its lawful stewardship authority, when a courtroom orders disposal, or when the Legal professional Normal or one other company head determines the property (or proceeds) needs to be returned to identifiable victims, used for law-enforcement operations, equitably shared with state and native companions, or launched to fulfill statutory necessities

Thus, the authorized sequencing issues. Tuesday’s 127,271 BTC is in authorities custody pending the result of the civil forfeiture case. Solely after closing forfeiture—via settlement or judgment—can the property be disposed of or allotted below the EO’s hierarchy, which places sufferer restitution first.

Politically, Lummis is pushing for Congress to lock within the coverage structure she outlined on X: market-structure laws that empowers decisive motion in opposition to illicit finance with out kneecapping innovation, and statutes that “codify how seized bitcoin is saved, returned to victims, and safeguarded for future generations.” That second plank is the legislative counterpart to EO 14233’s administrative framework.

As for the market’s operative query—will the US below Trump promote this BTC?—the present alerts level to restraint, not instant liquidation. The DOJ has affirmed the bitcoin is in US custody whereas the case proceeds; the EO presumes reserve therapy for lastly forfeited BTC after sufferer claims; and senior Republicans like Lummis are explicitly lobbying to embed that strategy in statute. Till the courtroom enters a closing forfeiture order and sufferer restitution is addressed, there may be nothing to promote. If and when these hurdles are cleared, the default, per the 2025 framework, is to deal with the BTC as a part of a Strategic Bitcoin Reserve relatively than public sale it—except Congress or a courtroom directs in any other case.

At press time, Bitcoin traded at $112,482.

Featured picture created with DALL.E, chart from TradingView.com

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