Chen Zhi transfers $1.4 billion worth of Bitcoin, attempting to evade U.S. judicial investigation

The heir group founder Chen Zhi, who is accused of leading a $14 billion cryptocurrency scam case, recently took major actions to hide assets. Blockchain analysis data shows that Chen Zhi transferred the 15,959 Bitcoins he held to four new wallet addresses, attempting to cut off the funding trail during U.S. law enforcement investigations. According to the latest market data, these assets are currently valued at approximately $1.43 billion, although this is a decrease from the original $1.72 billion, and the urgency of his concealment methods is evident.

Blockchain Transparency Cannot Be Hidden, Chen Zhi’s Fund Transfers Fully Recorded

Blockchain analysis firm Arkham Intelligence captured this critical move during monitoring. Chen Zhi dispersed his Bitcoin across multiple new addresses. Industry analysts believe this is a typical asset isolation strategy—intended to create confusion during U.S. Department of Justice investigations, weakening the link between the assets and wallets already marked by the U.S. government. Such operations may seem meticulously planned, but in the face of blockchain’s permanent records, all transfer traces remain clearly visible.

U.S. Department of Justice Launches Historic Crackdown, 127,271 Bitcoins Seized

Last week, the U.S. Department of Justice filed charges against Chen Zhi and his heir group executives, including wire fraud, money laundering, and forced labor. More notably, the DOJ has seized 127,271 Bitcoins obtained from Chen Zhi’s scam, valued at about $14.2 billion—setting the largest cryptocurrency asset seizure record in U.S. history and demonstrating law enforcement’s zero tolerance for crypto crimes.

According to the DOJ indictment, Chen Zhi and company executives secretly built the heir group into an Asian transnational crime empire, using human trafficking methods to force victims into “pig butchering” scams. These scams typically operate as follows: criminal groups impersonate romantic interests online to establish false relationships, gradually gaining victims’ trust, then inducing them to invest in cryptocurrencies or transfer funds directly. Through this method, Chen Zhi’s group defrauded victims in the U.S. and worldwide of billions of dollars.

Fund Flows Remain a Mystery, Chen Zhi’s Assets and Seized Assets Have Different Origins

It is noteworthy that the Bitcoin Chen Zhi transferred this time is not the same batch seized by the U.S. government, but other funds held by the heir group. This indicates that Chen Zhi’s group possesses far more assets than the amount confiscated by the DOJ, and the current transfer is an attempt to further conceal these funds. Arkham’s analysis points out that Chen Zhi’s real intention behind the transfer is obvious—confusing the trail, severing all links between the funds and sanctioned wallets, and leaving room for potential asset transfers and laundering.

The Truth About $14 Billion Remains Mysterious—Was It Stolen or Is There Another Hidden Agenda?

As the case develops, a perplexing “Rashomon” has emerged. Blockchain analysis firm Arkham speculated that the $14 billion worth of Bitcoin seized by the U.S. Department of Justice might originate from a 2020 hacking theft from China’s major mining pool LuBian. However, the DOJ indictment lists LuBian as a cooperating company used by the heir group to launder scam proceeds, directly contradicting the “LuBian was hacked” narrative.

This contradiction has sparked deep suspicion in the industry. Some blockchain analysts even speculate that the “hacking incident” involving LuBian may never have actually happened—or more dramatically, that these Bitcoins were actually obtained directly by U.S. law enforcement or their cooperating hacking organizations. According to the latest investigation report from blockchain intelligence firm Elliptic, the stolen Bitcoins remained dormant for years after 2020, only being transferred once in summer 2024, allegedly into wallets controlled by U.S. law enforcement. This deepens the mystery—who is truly controlling the flow of these funds?

Currently, Chen Zhi’s fund transfer behavior adds new variables to the case. Whether U.S. authorities can track and freeze these newly transferred Bitcoins remains a key question. The ultimate truth of the case may require time and more blockchain data to fully reveal.