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Alleged Billion-Dollar Crypto Scam Boss Handed Over To China

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Chinese authorities seized over 127,000 Bitcoin — value greater than $15 billion — from the pinnacle of an enormous crypto fraud community. That seizure, tied to Chen Zhi of Prince Group, was simply the opening transfer. Now his right-hand man is in custody too.

Extradition From Phnom Penh

Li Xiong, former chairman of Huione Group, was flown from Cambodia’s capital to China on April 1 after a process drive from China’s Ministry of Public Security coordinated the switch with Cambodian officers.

He now faces fraud and money-laundering charges. Hong Kong-based outlet Ta Kung Wen Wei first reported the event, citing a press release from the Ministry posted on WeChat.

Xiong’s arrest follows Chen Zhi’s by about three months, suggesting Chinese legislation enforcement has been working via the syndicate’s management in levels.

Huione Group operated because the monetary spine for scam operations unfold throughout Southeast Asia. These included so-called “pig butchering” schemes — long-con frauds the place criminals construct faux on-line relationships with victims earlier than draining their financial savings via faux funding platforms.

The group processed over $89 billion in crypto property, in keeping with blockchain analytics agency Elliptic, making it one of many largest illicit monetary operations ever documented.

A Network Built On Stolen Crypto

The syndicate’s reach prolonged properly past Cambodia. Victims all over the world misplaced cash to rip-off facilities that funneled proceeds via Huione’s infrastructure.

In October, the US Treasury Department’s Financial Crimes Enforcement Network reduce Huione Group off from the American banking system fully, ordering US monetary establishments to shut any accounts or cost channels linked to the group. That transfer successfully froze the community’s entry to dollar-denominated finance.

Around the identical time, the US Department of Justice introduced it had seized 127,271 Bitcoin linked to Chen Zhi. At present values, that haul exceeds $15 billion — one of many largest crypto seizures in historical past.

Authorities Warn Remaining Members

Chinese officers usually are not finished. Ta Kung Wen Wei reported that a number of different members of the syndicate have already been delivered to justice. Officials issued a public warning to anybody nonetheless at giant, urging them to show themselves in and cooperate in change for extra lenient remedy.

“Public safety authorities will proceed to accentuate efforts to seize fugitives,” the outlet quoted officers as saying.

The message was blunt: the window to give up is open, however it won’t keep open lengthy. With two of the group’s prime figures now in Chinese custody and its funds reduce off from the US banking system, what stays of the Huione community seems to be working out of room.

Featured picture from Getty Images, chart from TradingView

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