The United States government has seized roughly 127,271 Bitcoin, valued at nearly $15 billion, in what officials are calling a record-breaking forfeiture action linked to a massive international cryptocurrency fraud scheme. Federal prosecutors in Brooklyn, New York, unsealed an indictment on Tuesday, charging Chen Zhi, also known as Vincent, the founder and chairman of Cambodia’s Prince Holding Group, with wire fraud conspiracy and money laundering conspiracy.
According to the Department of Justice, this marks the largest forfeiture in the agency’s history. Authorities allege that the Prince Holding Group operated as a front for one of Asia’s most powerful transnational criminal organizations. The group is accused of orchestrating an elaborate global scam network that relied on forced labor to run online cryptocurrency fraud operations out of Cambodia.
Key Takeaways
- US authorities seized 127,271 Bitcoin, valued at about $15 billion.
- It’s the largest forfeiture action ever recorded by the DOJ.
- Chen Zhi, chairman of Prince Holding Group, faces charges of wire fraud and money laundering conspiracy.
- The scheme involved “pig butchering” scams and forced labor camps in Cambodia.
- The US Treasury Department designated Prince Holding Group as a Transnational Criminal Organization.
The Global Scam and Forced Labor Network
At the heart of the case is what’s known as a “pig butchering” scam, a term used for frauds that involve cultivating trust with victims over time before tricking them into investing in fake cryptocurrency platforms. Once the victims deposited funds, the money vanished into the network’s accounts.
Prosecutors claim Chen Zhi masterminded this highly organized scheme, which allegedly generated as much as $30 million per day during its peak. The operation was based out of several large, fortified compounds scattered across Cambodia. Inside these compounds, hundreds of trafficked workers, mostly from neighboring countries, were held under brutal conditions.
Many of them, investigators say, had been lured by online job ads promising legitimate, high-paying work, only to find themselves trapped. The compounds were surrounded by barbed wire and guarded by armed personnel. Workers lived in cramped dormitories and were forced to carry out the scams using “phone farms,” massive call centers filled with phones and computers running thousands of fake social media profiles.
When workers failed to meet daily quotas or tried to flee, they were reportedly beaten or tortured. Prosecutors shared evidence including photos of injuries and surveillance footage depicting violent punishment. Chen Zhi and his associates are accused of bribing officials across several countries to keep the operation hidden and running smoothly.
The Historic Forfeiture and Luxury Assets
The seized 127,271 Bitcoin now under US control are believed to be direct proceeds of the fraud and related laundering schemes. Prosecutors have filed a civil forfeiture complaint to formally transfer ownership to the United States government.
According to the DOJ, the illicit funds were washed through a complex web of businesses, including real estate firms, financial service companies, and even crypto mining operations managed by the Prince Group. The money also funded extravagant lifestyles. Chen Zhi and his partners allegedly spent millions on yachts, private jets, luxury homes, fine art, and high-end watches. Among the purchases was a Picasso painting bought at a New York auction house.
In a coordinated effort, both the United States and the United Kingdom have imposed sanctions against Chen Zhi and his companies. The US Treasury officially labeled the Prince Holding Group a Transnational Criminal Organization, while UK officials froze multiple London properties tied to the operation.
This case sends a strong message that governments are stepping up efforts to combat organized crime networks exploiting people and emerging technologies for profit. The mix of cyber-fraud, money laundering, and human trafficking paints a chilling picture of how far such operations have evolved.
Chen Zhi remains at large. If convicted, he could face up to 40 years in prison. Officials have indicated that the seized Bitcoin may eventually be used to compensate victims across the globe, though that process could take years.
It’s a staggering case, both in scope and scale, one that underlines how technology and exploitation can intertwine in the darkest ways. And perhaps more than anything, it shows that even in the digital age, the pursuit of justice can still reach across borders.
Related FAQs
Q. What is a “pig butchering” crypto scam?
A. A “pig butchering” scam, or Sha Zhu Pan, is a type of investment fraud where scammers slowly build a relationship with a victim online (the “pig”) over time. They gain the victim’s trust, often posing as a romantic interest or a savvy investor, before convincing them to invest in a fake cryptocurrency platform or investment scheme (the “butchering”). Once the victim puts in a significant amount of money, the scammer disappears with the funds.
Q. What is the Prince Holding Group?
A. Prince Holding Group is a large, multinational business conglomerate based in Cambodia. On the surface, it claims to operate in sectors like real estate development, financial services, and consumer services across more than 30 countries. However, the US Department of Justice alleges it acted as a front for a vast transnational criminal organization orchestrating the global crypto scam.
Q. Where was the global crypto scam network operating from?
A. The network was primarily operating from forced labor camps and scam compounds in Cambodia. Workers were trafficked to these compounds and forced to carry out the online fraud against victims worldwide, including in the United States.
Q. Can the seized $15 billion Bitcoin be returned to the victims?
A. Yes, if a court allows, the US government could use the seized Bitcoin to establish a process for repaying victims who lost money to the fraudulent schemes. The actual value in traditional currency will fluctuate with the price of Bitcoin.
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