The United States stands poised to significantly expand its Bitcoin holdings, potentially establishing a substantial national reserve through ongoing seizures linked to the defunct LuBian mining pool. Recent blockchain investigations suggest that the U.S. government could claim an additional $2 billion worth of Bitcoin, adding to an already announced record-setting crypto forfeiture.
Expanding the US Strategic Bitcoin Reserve
Blockchain investigators have identified nearly 16,237 BTC, valued at approximately $1.8 billion, actively moving across addresses connected to LuBian. This newly uncovered cache is distinct from the 127,000 BTC previously targeted for seizure across 25 other addresses. Should the U.S. government successfully recover these additional funds, its total Bitcoin holdings would surge to an impressive 343,000 BTC, representing about 1.6% of Bitcoin's total supply. This would solidify the U.S. as the largest nation-state holder of Bitcoin, aligning with the Strategic Bitcoin Reserve (SBR) program, enacted under a March 2025 executive order to manage seized digital assets.
The LuBian Collapse and Strategic Implications
LuBian, once a formidable Bitcoin mining pool controlling 6% of global hash power, met its downfall in late 2020 after attackers exploited a vulnerability to drain 127,426 BTC. U.S. authorities have since linked these stolen assets to a sprawling fraud network, the Prince Group, led by Chen Zhi, which allegedly laundered proceeds from "pig-butchering" scams into crypto-mining operations like LuBian. The ongoing efforts to seize these illicitly obtained assets underscore the importance of robust legal frameworks. Senator Cynthia Lummis has emphasized the need for clear digital asset market structure legislation to empower law enforcement and establish clear guidelines for storing, returning, and safeguarding seized Bitcoin, effectively transforming criminal proceeds into valuable national assets.
