Sept. 11 Claimants Seek Interest in 127,271 Bitcoin Forfeiture Case

The Chairnoff Claimants are seeking an interest in about 127,271 Bitcoin (BTC) held by the United States in a forfeiture case involving competing ownership claims.

The claimants say they hold more than $671 million in judgments against Iran for compensatory damages tied to deaths connected to the Sept. 11 attacks. They argue that LuBian, a Bitcoin mining operation, was operated by Iran and China Investment Development Group and therefore qualifies as an Iranian agency or instrumentality.

The United States filed its civil forfeiture complaint Oct. 14, 2025. The case alleges that the cryptocurrency and traceable proceeds are connected to wire fraud and money laundering. The assets are identified as Bitcoin previously held at virtual-currency addresses and are currently in U.S. custody.

The Chairnoff Claimants filed a verified claim and statement of interest Jan. 16, 2026, followed later by an answer to the forfeiture complaint. Their legal theory relies on the Terrorism Risk Insurance Act, which allows certain judgment holders to pursue blocked assets belonging to a terrorist party or its agency or instrumentality.

The forfeiture case alleges that LuBian was a Chinese Bitcoin mining operation with facilities in China and Iran. It also alleges that the Bitcoin did not come exclusively from LuBian and involved transfers linked to Chen Zhi, Prince Holding Group, cryptocurrency exchanges and other mining-related activity.

Those allegations leave ownership and priority unresolved. Other parties in the case include LuBian, Chen Zhi, Prince Holding Group, fraud victims and additional terrorism-related claimants.

The proceeding concerns the government's forfeiture claim and competing claims to the Bitcoin. It does not establish that the Chairnoff Claimants own the cryptocurrency, and no ruling awarding them any portion of the Bitcoin was identified.