China Alleges U.S. Hacked $15 Billion Worth Of Bitcoin From Chen Zhi, An Accused Scam Kingpin
In recent developments, the Chinese government has accused the United States of orchestrating a cyberattack to seize approximately $15 billion in Bitcoin from Chen Zhi, a Cambodian businessman alleged to have led extensive online scam operations. This accusation has intensified tensions between the two nations, raising questions about cybersecurity, international law enforcement, and the handling of digital assets.
Who is Chen Zhi and What Are the Allegations Against Him?
Chen Zhi, the founder and chairman of Cambodia’s Prince Holding Group, has been implicated in orchestrating large-scale online scams. U.S. prosecutors allege that Chen led a cyberfraud network responsible for defrauding victims worldwide, including over 250 Americans. One victim reportedly lost $400,000 in cryptocurrency. The operation allegedly generated $30 million daily, with profits laundered through businesses tied to real estate, gambling, and crypto mining.
What Led to the Seizure of $15 Billion in Bitcoin?
In October 2025, the U.S. Department of Justice unsealed an indictment against Chen, charging him with wire fraud and money laundering conspiracies. As part of the investigation, U.S. authorities seized 127,271 Bitcoins, valued at approximately $15 billion at the time. This seizure is considered the largest in the history of the Department of Justice. (wired.com)
How Did China Respond to the Bitcoin Seizure?
China’s National Computer Virus Emergency Response Center (NCVERC) released a report in November 2025, alleging that the U.S. government was behind a 2020 cyberattack on the LuBian Bitcoin mining pool, which resulted in the theft of 127,272 Bitcoins. The report suggests that the stolen cryptocurrency remained dormant for nearly four years before being moved to new addresses in mid-2024. The NCVERC characterized the operation as a “state-level hacker operation,” implying U.S. government involvement. (business-standard.com)
What Are the Implications of These Accusations?
The Chinese government’s accusations have significant implications for international relations and cybersecurity. If substantiated, they could indicate state-sponsored cyber activities targeting digital assets, potentially leading to increased tensions between the U.S. and China. Additionally, the case highlights the challenges in regulating and securing cryptocurrencies, which are often exploited in cybercrimes.
What Is the Current Status of Chen Zhi?
On January 7, 2026, Cambodia extradited Chen Zhi to China at the request of Chinese authorities. His Cambodian citizenship had been revoked in December 2025. Chen faces charges in China related to his alleged involvement in online scams and other criminal activities. (apnews.com)
How Has the U.S. Responded to China’s Accusations?
As of now, U.S. officials have not publicly addressed China’s allegations regarding the Bitcoin seizure. The Department of Justice has maintained that the seizure was conducted following established legal procedures aimed at recovering illicit funds. The lack of detailed information about how the U.S. obtained control of the cryptocurrency has led to speculation and further scrutiny.
What Does This Mean for the Future of Cryptocurrency Security?
This case underscores the vulnerabilities in the cryptocurrency ecosystem, particularly concerning large-scale thefts and the potential involvement of state actors. It highlights the need for robust security measures, international cooperation, and clear regulatory frameworks to protect digital assets and maintain trust in the system.
In conclusion, the allegations by China against the U.S. regarding the seizure of $15 billion in Bitcoin from Chen Zhi have added complexity to an already intricate case involving international cybercrime, digital asset security, and geopolitical relations. As investigations continue, the global community will be watching closely to understand the full implications of these developments.
