U.S. Seizes $15 Billion In Bitcoin, Sanctions Cambodia’s Prince Group In Global Crypto ‘Scam’ Crackdown
Topline
The Department of Justice seized roughly $15 billion in bitcoin from the self-custodied cryptocurrency wallets of Prince Group founder Chen Zhi, who authorities allege orchestrated a vast “pig butchering” scam based in Cambodia, marking a record-setting forfeiture as the Treasury Department labeled Prince Group a transnational criminal organization.
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Key Facts
The Department of Justice filed a forfeiture action Tuesday for 127,271 bitcoin, worth approximately $15 billion, and Chen Zhi, the founder and chairman of real estate conglomerate Prince Group, was indicted on wire fraud and money laundering conspiracy charges and remains at large.
Prosecutors allege Prince Group trafficked hundreds of workers and forced them to run crypto scams in compounds where Zhi kept records of “phone farms” – automated call centers which facilitate fraudulent schemes – alongside photographs documenting beatings and torture methods.
Prince Group Transnational Criminal Organization also allegedly profited from sextortion, where victims are blackmailed with sexually explicit materials, often generated by artificial intelligence.
Prince Group defrauded millions of victims globally, stealing billions in cryptocurrency through social media investment scams, the funds from which were laundered by the perpetrators, prosecutors say.
A Brooklyn-based operation facilitated the fraudulent laundering of millions of dollars on behalf of Prince Group from more than 250 U.S. victims.
They used the proceeds to purchase yachts, private jets, vacation homes and a Picasso purchased through an auction house in New York City, according to the Department of Justice.
Crucial Quote
Assistant Attorney General for National Security John A. Eisenber called the Prince Group “a criminal enterprise built on human suffering,” adding, “Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States.”
Key Background
Founded in 2015 by Chen Zhi, Prince Group is a Cambodian conglomerate purportedly focused on real estate development, financial services and consumer services–allegedly grew into one of Asia’s largest criminal enterprises, operating across more than 30 countries. Prosecutors say the group ran forced-labor compounds where trafficked workers carried out “pig butchering” scams – a long-term investment fraud where scammers groom victims before tricking them into investing money in a fake cryptocurrency or other financial scheme. The Department of Justice alleges Zhi and his associates used political influence and bribes to protect the operation. Meanwhile, the Treasury Department sanctioned more than 100 individuals and entities linked to Prince Group, calling it the largest U.S. action to date against Southeast Asian scam networks. If convicted, Zhi faces up to 40 years in prison.
Big Number: $5.8 Billion
According to the FBI Internet Crime Complaint Center’s 2024 Internet Crime Report, that’s how much cryptocurrency investment fraud caused in reported losses in the U.S. last year.
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