Federal agents in the U.S. have confiscated a record $15 billion in Bitcoin, purportedly linked to a Cambodian criminal network that coerced trafficked individuals into executing complex cryptocurrency “pig butchering” scams worldwide.
Summary
- U.S. authorities have seized $15 billion in Bitcoin from unhosted wallets associated with Chen Zhi, the founder of Prince Group, marking the largest forfeiture in the DOJ’s history.
- Prosecutors claim Zhi operated forced-labor camps in Cambodia, where trafficked workers engaged in global “pig butchering” crypto scams.
- The indictment outlines how the Prince Group leveraged its international network to launder money via intricate crypto methods and luxury acquisitions, including a Picasso painting.
On October 14, the U.S. Department of Justice declared its largest ever forfeiture action, seizing around 127,271 Bitcoin (BTC), valued at roughly $15 billion, from unhosted wallets tied to UK and Cambodian national Chen Zhi.
Federal prosecutors have unsealed an indictment in Brooklyn, accusing the Prince Group chairman of heading a transnational criminal organization that managed forced-labor facilities in Cambodia.
The DOJ contends these facilities served as bases for large-scale “pig butchering” scams that targeted global victims, with one Brooklyn-based operation siphoning millions from over 250 individuals in the U.S. Chen Zhi remains at large.
Inside the Prince Group empire
According to the unsealed indictment, Chen Zhi established the Prince Group around 2015, fostering a public persona as the chairman of a credible multinational conglomerate. The group’s portfolio included, among other sectors, real estate development, financial services, and consumer solutions, with a presence in over 30 countries.
Federal prosecutors assert that this expansive corporate structure was largely a facade. Beneath a legitimate business front, Zhi and his executives allegedly transformed the organization into one of Asia’s most powerful transnational criminal enterprises, using its global footprint to orchestrate an extensive fraud network.
The illicit operations were allegedly managed from the highest levels. Court documents indicate that Zhi was directly involved in overseeing the scam operations, maintaining detailed records that tracked profits from various fraudulent schemes conducted within individual rooms.
He is also accused of supervising “phone farms,” automated call centers that utilized thousands of phones and millions of numbers to target victims around the world. The indictment further alleges that Zhi communicated directly with subordinates regarding the use of violence against trafficked workers, instructing them to discipline individuals who “caused trouble,” while warning not to “beat to death.”
Prosecutors claim that individuals held against their will in facilities described as prison-like compounds surrounded by high walls and barbed wire were coerced into contacting potential victims via messaging and social media platforms. Posing as reliable contacts, they cultivated relationships over time before pivoting conversations toward fraudulent cryptocurrency investments.
Victims were persuaded to transfer cryptocurrency to designated accounts with promises of high returns, only to have their funds misappropriated and laundered for the syndicate’s benefit. This “pig butchering” operation, driven by forced labor, generated billions in illegal profits.
Laundering the empire’s digital profits
To conceal the vast flow of illegal funds, Prince Group associates, acting on Zhi’s orders, employed sophisticated cryptocurrency laundering techniques. Prosecutors detail practices such as “spraying” and “funneling,” where large amounts of cryptocurrency were repeatedly divided across numerous wallets and then reassembled to obscure the audit trail.
A portion of the illicit revenues was eventually held in wallets on various cryptocurrency exchanges or converted into conventional fiat currency. However, the bulk of the seized assets—127,271 Bitcoin—was stored in unhosted wallets, with Zhi holding the private keys.
Zhi and his accomplices allegedly utilized the illegal proceeds to sustain a life of extreme luxury, making lavish purchases that included watches, yachts, private jets, and vacation properties.
Notably, Zhi is alleged to have used the stolen funds to buy a Picasso painting through a New York City auction house, embedding the proceeds of human suffering into the world’s most exclusive luxury markets.
