The U.S. government has seized 215 bitcoins—currently valued at approximately $23 million—from the wallet of Zhengcheng Huang, the operator of the dark web marketplace “Chinodrug.” Huang pleaded guilty earlier this year to conspiracy to distribute oxycodone, which he sold online using the Chinodrug alias.
Federal prosecutors said Huang typically requested payment in Bitcoin to make tracing the transactions more difficult. His operation reportedly spanned from at least 2018 until his arrest in 2024, delivering oxycodone to multiple states, including Pennsylvania, California, Michigan, New Hampshire, and Florida. Shipments were often disguised in decoy packaging via the U.S. Postal Service.
Tracing the Cryptocurrency Trail
Authorities traced Huang’s operations through postal records and Bitcoin transactions. Investigators discovered a Stamps.com account linked to Chinodrug, which handled roughly 15,000 shipments. Cryptocurrency payments eventually led them to Huang, revealing his possession of nearly 200 Bitcoins.
Legal Dispute Over Bitcoin Forfeiture
The seizure prompted legal debate due to Bitcoin’s dramatic value increase since the time of Huang’s transactions. His attorneys argued that he only joined the operation in 2021, that some Bitcoins were purchased legitimately, and that seizing the full amount would be excessive—nearly 25 times the maximum statutory fine for his crimes.
U.S. District Judge Michael Baylson rejected these arguments. Comparing Huang’s situation to Richard Wagner’s operas, he emphasized the speculative nature of Bitcoin and said its high value did not diminish Huang’s criminal responsibility. Baylson described the case as “one of the most serious drug cases, in terms of quantity of drugs, that I’ve ever come across,” sentencing Huang to 15 years in federal prison in addition to approving the multimillion-dollar forfeiture.
Discrepancies in Reported Bitcoin Amount
Crypto analyst Emmett Gallic noted a discrepancy in the forfeiture documents. Officials reported seizing 199.47 BTC, but the wallet reportedly contained 215 BTC. Gallic explained that such inconsistencies are common, as the U.S. government rarely discloses precise figures in forfeiture filings.
Limited Details Available
Currently, few additional details about the case are publicly available. It remains uncertain whether Huang will appeal the forfeiture or if the government will liquidate the cryptocurrency holdings.
Case Summary and Current Status
The seizure of Huang’s cryptocurrency reflects ongoing legal proceedings related to his operation of the dark web marketplace Chinodrug and his conviction for conspiracy to distribute oxycodone. At present, it remains unclear whether Huang will appeal the forfeiture order or if the government will move to liquidate the Bitcoin holdings. Few additional details are publicly available, and this summary includes all currently known information about the case.
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