US Seizes $15B in Bitcoin, Charges Cambodian Tycoon in Crypto Fraud Case
The US authorities have charged Cambodian businessman Chen Zhi, chairman of Prince Holding Group, for allegedly working one of many largest cryptocurrency fraud operations in historical past.
The Justice Department seized over 127,000 bitcoins—price about $15 billion—and imposed sweeping sanctions and asset freezes concentrating on Chen’s huge enterprise community in a number of nations.
US Indicts Chen Zhi Over Global Crypto Scam
Federal prosecutors in Brooklyn charged Chen Zhi with wire fraud and money laundering conspiracy in reference to a years-long crypto funding rip-off. The US Department of Justice stated the operation used compelled labor to run “pig butchering” scams. These had been fraudulent crypto funding pitches that tricked victims into transferring digital belongings.
The Justice Department introduced the seizure of 127,271 bitcoins, the biggest crypto forfeiture in US historical past. The seized tokens, valued at about $15 billion, had been saved in unhosted wallets. Prosecutors stated Chen and his associates managed them. The group allegedly used shell companies, on-line playing, and crypto mining to cover the funds’ origins.
According to court docket filings, staff had been trafficked and detained in compounds in Cambodia, the place they operated 1000’s of faux social media profiles to lure traders. Prosecutors stated Chen licensed violent enforcement measures to manage these staff. One of the compounds, linked to Prince Group’s on line casino operations, housed in depth “telephone farms” used for fraudulent messaging campaigns.
Chen, often known as Vincent, stays at massive. He faces as much as 40 years in jail if convicted.
Treasury Sanctions Prince Holding Group and Freezes Assets
The US Treasury Department designated Prince Holding Group as a transnational prison group, citing its central position in international on-line scams. The designation successfully bars US entities from doing enterprise with the conglomerate. UK authorities additionally froze over $172 million (£130 million) in belongings linked to Chen, together with a London property valued at $16 million(£12 million).
US Treasury Secretary Scott Bessent stated transnational crypto fraud “has value Americans billions, usually wiping out life financial savings inside minutes.” The sanctions prolong to Prince Group’s actual property, monetary companies, and expertise subsidiaries, as authorities goal to stop the corporate from utilizing respectable industries to hide prison exercise.
Prosecutors stated the community moved illicit proceeds by way of a number of jurisdictions and invested in luxurious objects, together with personal jets, yachts, and advantageous artwork. Court filings describe Chen’s inside circle as a small group of executives who oversaw operations throughout a minimum of 30 nations. Several executives allegedly bribed international officers and facilitated crypto transactions supposed to bypass worldwide scrutiny.
The US Justice Department stated it could use the seized bitcoin to reimburse victims, which is pending court docket approval.
Crypto-Linked Scams in Southeast Asia
The indictment underscores Southeast Asia’s rising presence in the worldwide cyberfraud financial system. The United Nations estimates that greater than 100,000 individuals in Cambodia are compelled to hitch rip-off operations. Similar prison networks additionally function in Myanmar, Laos, and the Philippines.
Experts say Prince Holding Group’s enterprise empire was instrumental in scaling these scams internationally.
Jacob Daniel Sims, a transnational crime researcher at Harvard University’s Asia Center, stated the US motion “changes the risk calculus” for traders and banks coping with Cambodian elites. He added that the sanctions sign “a uncommon pushback towards elite-driven cybercrime economies.”
Despite the fees, Prince Holding Group continues to explain itself as one in every of Cambodia’s largest conglomerates, working over 100 actual property, finance, and tourism companies. Cambodian officers haven’t publicly commented on the case.
According to a University of Texas research, international losses from “pig butchering” scams exceeded $75 billion between 2020 and 2024. The FBI reported $5.8 billion in crypto funding fraud losses in 2024 alone.
While the indictment is unlikely to dismantle the trade instantly, it marks a big escalation in worldwide enforcement towards crypto-enabled crime.
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