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The United States government has seized 215 Bitcoin ($BTC) from Zhengcheng Huang’s crypto wallet.
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On-chain data found that Huang, the operator of the illicit dark web marketplace “Chinodrug,” had 215 BTC in his wallet, whereas the report only mentioned 199.47 BTC.
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EdgenTech data also found that the US federal government currently holds over 325,000 $BTC.
The United States federal government has seized 215 Bitcoin $BTC, valued at roughly $25 million, from Zhengcheng Huang, the operator of darknet marketplace “Chinodrug.” According to a recent filing, his forfeiture documents mentioned that only 199.47 BTC were found in the wallet, but on-chain data found that there were 215 BTC in the wallet.
Arkham Intelligence data revealed that the government seized 215.365 BTC, worth about $23,695, at press time, from Zhengcheng Huang’s wallet.
Analysts have noted that it’s not uncommon for the US government to conceal the precise figures of its seizures in forfeiture documents. This shows the extent the government will go to tackle illicit transactions and cybercrime occurring on the dark web.
Zhengcheng Huang’s Crackdown
Zhengchange Huang, the mastermind behind darknet marketplace Chinodrug, used the platform to illegally distribute Class A drugs to buyers in the United States. According to prosecutors, Huang sold oxycodone and Percocet to US customers, accepting payment via Bitcoin.
According to investigators, this payment method only made tracking him more difficult. However, after various investigations, US law enforcement officers apprehended him and charged him in court.
During a hearing earlier in 2025, Huang pleaded guilty, admitting to supplying the drugs to US-based customers. When prosecutors moved to seize the assets found in his possession, Huang’s attorneys countered, claiming that some of the BTC in the wallet weren’t from his transactions.
They claimed that he deposited some of the assets using his own legitimate money. Furthermore, Huang’s lawyers claimed that the seizure was significantly more than the value of the drugs he supplied.
The US’s Crypto Accumulation
While this recent action by the US government appears to be another illicit dark web crackdown, it also reveals an underlying campaign of the US government. Pseudonymous analyst at EdgenTech, Kazamass, posted on X, noting that the United States government has been taking actions to accumulate its Bitcoin possessions.
He noted that, since the commencement of the Strategic Bitcoin Reserve policy earlier this year, the government has been accumulating its seized crypto assets, rather than selling them.
Furthermore, the analyst added that the US government is currently in possession of over 325,000 $BTC, which is almost 1.5% of the overall circulating supply.
The United States was once strongly opposed to Bitcoin, labeling the world’s largest cryptocurrency as a threat. However, it is now one of the leading Bitcoin holders globally.
It remains unclear what plans the US government has for the crypto asset and the crypto industry in general, as crypto asset forfeiture and restitution are still developing.
In the short term, its seizure may further tighten stances around mixers and privacy coins, but it still underscores Bitcoin’s stance as a strategic crypto asset. With each additional legal case against cyber criminals and drug traffickers, each seizure, each new headline, Bitcoin grows deeper into the roots of the US financial system.
