US government seizes 127,000 illegally obtained Bitcoins

The United States government currently holds some 200,000 Bitcoins, mostly obtained through seizures of criminal organizations on its territory. That’s roughly the same as China, and both have a significant lead over the United Kingdom. For two out of three countries, this could change significantly in the coming days and weeks.

Asia

As mentioned last week, a judge in London will soon decide on the future of some 61,000 Bitcoins, so the UK may be able to add those to its account. But the biggest change is the seizure of 127,000 Bitcoins by the US this week, taken from a criminal organization specializing in “pig butchering” scams, that operated from Cambodia.

https://twitter.com/babacryptoio/status/1978357891242582517

In 2024, John Oliver gave a long and detailed overview of the very popular “pig-butchering” scams (where money is primarily paid out in crypto) on his “Last Week Tonight” program, and they seem to be gaining popularity, especially in Asia.

Criminal groups from countries like Cambodia contact unsuspecting (usually male) Americans with the promise of meeting a beautiful, often young woman. Unfortunately, these women supposedly always need money to visit, which is then paid in Bitcoin.

A Cambodian gang had truly specialized in these “pig-butchering” scams and earned some 127,000 Bitcoins, worth $15 billion, from it.

The US government has seized these funds and now owns a total of approximately 350,000 Bitcoins and is thus clearly the largest Bitcoin whale among governments.