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

Did The US Just Stack 127,000 Bitcoin? Sen. Lummis Says Hold
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U.S. Sen. Cynthia Lummis (R-Wis.) on Tuesday praised the Trump administration’s coordinated crackdown on the Prince Group, a Cambodia-based group that U.S. authorities allege ran online fraud complexes to “slaughter pigs” with forced labor and launder criminal proceeds through bitcoin on an unprecedented scale.

Is it a win for the US Strategic Bitcoin Reserve?

Federal prosecutors in Brooklyn unsealed an indictment charging Prince Chin Chi Group chairman with wire fraud and money laundering conspiracies, while the Justice Department filed a civil complaint to forfeit approximately 127,271 bitcoins — about $14 to $15 billion at current prices — now in U.S. government custody. In parallel, the Treasury Department classified the Prince Group as a transnational criminal organization and moved to disconnect the Hoyun Group from the US financial system.

“Another victory for the American president and a victory for human rights, financial integrity and American leadership,” Loomis said. books “The seizure of 127,000 bitcoins underscores two urgent priorities for Congress: first, passing clear legislation on the structure of the digital asset market to ensure law enforcement can act decisively against bad actors while protecting innovation…second, codifying how seized bitcoin is stored, returned to victims, and protected,” she added in a thread highlighting the scale of the cryptocurrency demonetization. For future generations. Turning Criminal Proceeds into Assets What bolsters America’s strategic bitcoin reserve shows how sound policy can turn wrongdoing into lasting national value.

The basic issue is sprawling. Prosecutors say Chen ran Prince Group’s network of Cambodian pools, where trafficked workers — detained and abused — were forced to run online investment and romance scams, embezzling billions from American and global victims. The EDNY filing describes Bitcoin caches as proceeds and tools for schemes that Chen previously controlled via unhosted wallets; He describes this action as “the largest forfeiture action in the history of the Department of Justice.”

The news has been rippling through cryptocurrency forensic circles. Arkham, which tracks government-linked wallets, said: “Today the US government filed to seize $127,271 worth of Bitcoin… It has now been confirmed that these Bitcoins are under the control of the US government. It is the largest forfeiture case ever.” While the on-chain analytics companies do not specify legal ownership, their assertion that the assets moved to US-controlled addresses is consistent with the Justice Department’s representation in court and the Treasury Department’s sanctions actions.

Should the US government sell?

The immediate political question for the markets is whether the administration will sell this bitcoin or hold it. Here, the answer is more constrained by law and process than by politics. The White House’s March 6, 2025 Executive Order (EO 14233), “Establishing a Strategic Bitcoin Reserve and Stockpile of Digital Assets for the United States,” established a framework under which the reserve would initially be capitalized in Bitcoin “owned by the Department of the Treasury that is finally seized as part of a criminal or civil asset forfeiture proceeding or in satisfaction of any civil monetary penalty.”

Under Executive Order 14233, “Bitcoins” placed by the government in the Strategic Bitcoin Reserve “may be sold only when the Department of the Treasury exercises its statutory supervisory authority, when a court orders action, or when the Attorney General or head of another agency determines that the assets (or proceeds) should be returned to identifiable victims, used in law enforcement operations, or fairly shared with government partners.” and local, or released to meet legal requirements.

Therefore the legal sequence is important. On Tuesday, 127,271 bitcoins were in government custody awaiting the outcome of the civil forfeiture case. Only after final expropriation – through settlement or judgment – ​​can assets be disposed of or allocated under the EO hierarchy, which puts compensation for victims first.

Politically, Loomis is pressing Congress to secure the political architecture she outlined in This second provision is the legislative counterpart to the administrative framework of Executive Order 14233.

As for the practical market question – will the US under Trump sell this Bitcoin? – Current signals point to restraint, not immediate liquidation. The Department of Justice confirmed that Bitcoin is in US custody while the case is ongoing; The Ethics Office assumes backup processing of permanently confiscated BTC following victim claims; Top Republicans like Lummis are vocally lobbying for this approach to be included in the law. Until the court issues a final order of forfeiture and the issue of victim restitution is addressed, there is nothing for sale. If and when these hurdles are cleared, the default position, under the 2025 Framework, is for bitcoin to be treated as part of the Strategic Bitcoin Reserve rather than auctioned off — unless Congress or a court directs otherwise.

At press time, Bitcoin was trading at $112,482.

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