Chen Zhi Seeks Dismissal of U.S. Seizure of 127,271 Bitcoin
Bloomberg reports that Chen Zhi’s lawyers asked a New York federal court to dismiss the seizure, disputing prosecutors’ timeline and denying the Bitcoin was linked to fraud or money laundering.
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Fact Check
The claim is accurately supported by recent reporting from Bloomberg and crypto-focused news outlets. The original seizure of 127,271 BTC by the DOJ in October 2025 is a matter of public record (confirmed by Gibson Dunn and CNN), and the recent legal motion to dismiss that seizure in March 2026 has been widely reported by Bloomberg and BlockBeats.
Summary
Chen Zhi’s lawyers moved in New York federal court to dismiss the U.S. seizure of 127,271 Bitcoin, according to Bloomberg. The filing challenged the government’s timeline and argued that the Bitcoin was not proceeds of fraud or money laundering. U.S. prosecutors had previously described the action as a record seizure and said the holdings were worth $15 billion at the time.
Terms & Concepts
- money laundering: The process of concealing the origin of funds that authorities allege were generated through illegal activity.
- Bitcoin: The largest cryptocurrency by market value, used as a digital asset and transferable on a decentralized blockchain network.
- seizure: A legal action in which authorities take control of property or assets as part of an investigation or forfeiture case.