FBI Seized $15 Billion in Operation Blackout
Federal authorities dismantled massive fraud rings and recovered over 127,000 Bitcoin in late 2025.
Updated on Sept. 21, 2026 in Financial Crime
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In October 2025, the FBI seized $15 billion in assets and cryptocurrency as part of Operation Blackout. The initiative resulted in the closure of over 500 fake investment websites linked to elaborate international scams.
Why it matters
The operation targeted organized rings that allegedly utilized forced-labor compounds in Cambodia to conduct investment scams. By dismantling these networks, authorities aimed to sever the financial lifelines of illicit groups using cryptocurrency to conceal proceeds.
Chen Zhi currently faces charges of wire fraud and money laundering conspiracy for his role in the Prince Holding Group. The government has initiated formal civil forfeiture actions to secure the 127,271 Bitcoin now in its custody.
The players
Federal Bureau of Investigation
This domestic intelligence and security service of the United States led the multi-agency investigations.
Prince Holding Group
This entity allegedly operated forced-labor compounds in Cambodia that facilitated widespread cryptocurrency investment scams.
Chen Zhi
The individual is facing criminal charges for wire fraud and money laundering conspiracy related to the fraudulent operations.
The details
Fraudsters built personal relationships with victims before directing them to sophisticated fake investment platforms. The network moved and laundered illegal proceeds through complex cryptocurrency and traditional financial channels.
Timeline
In October 2025, the Justice Department filed a civil forfeiture action against 127,271 Bitcoin.
September 21, 2026, marked the publication date of reports detailing the results of Operation Blackout.
Legal Context
The 2022 shutdown of the Silk Road darknet marketplace provides a historical parallel for how federal authorities track and seize large-scale cryptocurrency holdings. Operation Blackout follows a pattern set by previous major government seizures of digital assets used in illicit enterprise.
Residents should remain vigilant against unsolicited investment offers that demand payment via cryptocurrency. Authorities have already notified over 8,000 victims, and individuals who believe they were targeted should monitor official government notices regarding potential claims.
The takeaway
Large-scale investment scams often rely on emotional manipulation and the anonymity of digital currency to operate across borders. Consumers are encouraged to verify the legitimacy of any investment platform through official regulatory databases before transferring funds.
Further reading
For more information on how federal agencies track and prosecute digital asset theft, visit our section on Financial Crime.
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