Comprehensive Editorial Excellence and Industry Insight
Expert editorial content, meticulously reviewed by top industry specialists and experienced editors, ensures high-quality information. This article is a product of rigorous standards and a commitment to deliver unparalleled content.
US Senator Cynthia Lummis Applauds Crackdown on Prince Group
Senator Cynthia Lummis from Wyoming recently commended the Trump administration’s decisive actions against the Prince Group, a conglomerate based in Cambodia. US authorities suspect the group of orchestrating forced-labor schemes, referred to as “pig-butchering” cyber-fraud operations, and laundering substantial amounts of money through Bitcoin.
Advertisement Banner
A Strategic Gain for the US Bitcoin Reserve?
In a significant move, federal prosecutors in Brooklyn unveiled charges against Chen Zhi, the chairman of Prince Group, accusing him of conspiracies related to wire fraud and money laundering. Simultaneously, the Justice Department initiated a civil forfeiture complaint concerning approximately 127,271 BTC—valued between $14 and $15 billion based on current market prices—now held by the US government. Furthermore, the Treasury Department labeled Prince Group as a transnational criminal entity and took steps to disconnect the Huione Group from the US financial framework.
Cynthia Lummis expressed her approval on social media, stating, “Another victory for human rights, financial integrity, and American leadership.” She emphasized the importance of advancing digital asset legislation to empower law enforcement and protect innovation. Additionally, Lummis remarked on the need to establish procedures for handling seized Bitcoin, ensuring its conversion into assets that could bolster America’s Strategic Bitcoin Reserve.
The Complex Case Against Prince Group
This intricate case involves allegations that Chen Zhi orchestrated a network of Cambodian facilities where trafficked individuals were compelled to conduct online fraud schemes, deceiving victims worldwide. The Eastern District of New York’s filing describes the seized Bitcoin as proceeds from these fraudulent activities, marking it as the largest forfeiture action in the Department of Justice’s history.
The crypto-forensics community has been abuzz with this development. Arkham, a firm tracking government-affiliated wallets, confirmed the US Government’s control over the forfeited Bitcoin. This aligns with the Justice Department’s court representations and the Treasury’s sanction actions.
Should the US Government Sell the Seized Bitcoin?
The critical policy question is whether the administration will choose to sell or retain the Bitcoin. This decision is largely guided by legal and procedural frameworks rather than political motives. An executive order issued on March 6, 2025, by the Trump administration established the Strategic Bitcoin Reserve, dictating that Bitcoin owned by the Treasury and forfeited through legal proceedings shall not be sold, except under specific circumstances such as court orders or lawful stewardship authority.
Currently, the 127,271 BTC remains in government custody, awaiting the resolution of the civil forfeiture case. Only after a final forfeiture can the assets be allocated according to the executive order’s priorities, with victim restitution taking precedence.
Politically, Senator Lummis is advocating for Congress to solidify this policy framework, urging for legislation that empowers decisive action against illicit finance while safeguarding innovation. The approach aligns with the executive order’s provisions, suggesting that the seized Bitcoin will likely become part of a Strategic Bitcoin Reserve, rather than being sold off, unless directed otherwise by Congress or the courts.
At the time of this writing, Bitcoin is trading at $112,482.
Commitment to Editorial Integrity
At Bitcoinist, our editorial process is dedicated to delivering thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, with each article undergoing careful review by our team of leading technology experts and seasoned editors. This ensures that our content remains relevant, reliable, and of high value to our readers.
