The U.S. government is set to seize 127,271 Bitcoin, valued at approximately $14.2 billion, allegedly earned through a cross-border “pig butchering” scam orchestrated by Chinese national Chen Zhi.
If this action is finalized, the Bitcoin will be incorporated into the U.S. Strategic Bitcoin Reserve, as outlined in President Trump’s Executive Order issued earlier this year. However, uncertainties due to the ongoing government shutdown and a tight timeline for ratification could impede the process.
The Executive Order clearly specifies,
“The Strategic Bitcoin Reserve will be funded with bitcoin owned by the Department of Treasury that was forfeited during criminal or civil asset forfeiture proceedings.”
The legal document filed on October 14 details an extensive criminal organization that combined cryptocurrency investment fraud, human trafficking, and political corruption.
Cryptocurrency Fraud
As per the court filing, Zhi headed the Prince Group, a key player in Cambodia’s underground digital market.
This group maintained a network of scam facilities that also served as detention sites for trafficked individuals. Reports suggest that thousands of migrants, drawn in by fraudulent job postings, were compelled to operate fake cryptocurrency investment schemes under threats of violence.
Chen established at least ten significant compounds under his leadership, including sites connected to the Jinbei Hotel and Casino, the Golden Fortune Science and Technology Park, and Mango Park.
Court documents indicate that Chen meticulously recorded the operations of each compound, frequently using the Chinese term “sha zhu,” which translates to “pig-butchering,” a reference to scams that exploit victims emotionally before defrauding them.
The U.S. government claims that Chen and senior associates bribed officials and utilized political influence to avoid prosecution, even receiving advance notifications of impending law enforcement actions.
Through these connections, the organization managed to control billions in illegal cryptocurrency transactions, solidifying its role within Cambodia’s broader illicit economy.
Huione’s Sanctions
In addition to seeking to confiscate the illicit assets, U.S. officials, in concert with the U.K.’s Foreign, Commonwealth, and Development Office (FCDO), have imposed sanctions on Zhen and associated entities.
According to a press release, OFAC has sanctioned 146 individuals and organizations linked to the Prince Group Transnational Criminal Organization (TCO), a Cambodia-based network led by Chen Zhi that purportedly ran numerous online investment scams targeting Americans and citizens of allied nations.
FinCEN has also invoked Section 311 of the USA PATRIOT Act to formally isolate Cambodia’s Huione Group from the U.S. financial system, identifying it as a key channel for laundering funds derived from cryptocurrency fraud and related cyber crimes.
U.S. officials stated that Huione’s networks played a critical role in hiding billions in stolen assets belonging to investors globally.
