US Seizes $2.4B in Bitcoin as BTC Teeters on Key Support Level
- Arkham traced $2.4B in Bitcoin moved from Chen-linked LuBian wallets on October 15.
- The total seized Bitcoin may surpass $16.5B, marking a record-breaking crypto forfeiture.
- DOJ accuses Chen Zhi of running a vast global “pig-butchering” cryptocurrency scam.
According to Arkham Intelligence, the U.S. government may have quietly seized an additional $2.4 billion worth of Bitcoin from wallets linked to Chinese businessman Chen Zhi. The movement follows last week’s reported $14.1 billion BTC seizure, which, if confirmed, would bring the total amount confiscated to more than $16.5 billion, marking one of the largest digital asset seizures in U.S. history.
LuBian-Linked Transfers Raise Speculation
In an X post, Arkham further revealed that funds from LuBian-linked wallets, previously tied to a 2020 hack, were moved on October 15. According to the reports, these assets were sent to new, unidentified addresses not listed in any court records or sanctions databases.
These wallets showed no prior activity, a hallmark of custodial holding patterns seen in previous government seizures. The movements closely resembled earlier U.S. enforcement actions, in which Bitcoin tied to criminal cases was quietly consolidated before being publicly announced.
The structure and timing of these transfers led blockchain analysts to suspect another round of asset seizures. If verified, the additional $2.4 billion would push the total amount seized from Chen-linked entities above $16.5 billion.
That figure would make this case one of the largest digital asset forfeitures in American history. While authorities have not issued a statement, Arkham’s findings suggest that the government’s digital asset recovery operations may be expanding quietly, reinforcing its capacity to monitor global crypto transactions.
The “Pig-Butchering” Network Behind the Seizure
Just yesterday, U.S. prosecutors unsealed an indictment against Chen Zhi, also known as “Vincent,” and several associates. In an official statement, the DOJ accused Chen of running a vast “pig-butchering” scheme, a criminal network that tricked victims worldwide into fake crypto investments.
Court filings show the government sought the forfeiture of 127,271 Bitcoin, valued between $14 billion and $15 billion, tied to the case. Authorities allege that Chen’s group trafficked workers and forced them to operate in compounds where they carried out the online scams, targeting victims in the United States and other countries.
“Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as ‘pig butchering’ scams, that stole billions of dollars from victims in the United States and around the world,” the department said, noting that Zhi had not been apprehended.
According to prosecutors, Chen controlled his Bitcoin through unhosted wallets for which he held the private keys. They claim the profits funded lavish spending sprees, including luxury yachts, private jets, exclusive properties, and even a Picasso painting purchased through a New York auction house.
Related: ZachXBT Tracks $28M Bittensor Hack Through NFT Trades
Price Action: BTC Faces Critical Support Test
Bitcoin continues to face heavy selling pressure, with its price slipping nearly 2% in the past 24 hours and almost 9% over the week. The flagship token now hovers near the $110K mark, struggling to recover after losing its crucial $116K–$114K cost-basis zone.
This drop pushed BTC below its 50-day moving average ($114,459), a sign that short-term momentum is weakening. The RSI14 reading of 39.58 reflects fading strength but not yet an oversold market, leaving room for further downside.
Source: TradingView
Meanwhile, a bearish MACD divergence (-1,184 histogram) adds to the pressure, confirming that bullish momentum has largely stalled. A daily close below $110K could trigger a deeper slide toward $107K, a key level aligning with the 200-day moving average and the short-term holder’s realized price.
If that floor fails, traders would be watching the $102K Fibonacci support (127.20% retracement) and the $99K zone (141.40% level), critical areas where Bitcoin might attempt its subsequent rebound.
