Chinese tycoon tied to $11B ‘pig butchering’ bitcoin scam taken into custody

A Chinese-born business mogul, Chen Zhi, has been apprehended in Asia for his alleged involvement in a massive bitcoin scam targeting individuals, including Americans. Chen, the chairman of Prince Group based in Cambodia, was arrested by Cambodian authorities and subsequently extradited to China.

The arrest was made at the request of the Chinese government as part of efforts to combat transnational crime, according to Cambodia’s interior ministry. Chen, a naturalized Cambodian citizen, is facing charges of wire fraud and money laundering in connection with the scam.

The scam, known as a “pig butchering” scheme, involves deceiving victims through fake online relationships before persuading them to invest in fraudulent platforms, resulting in the loss of their cryptocurrency savings.

Authorities seized a significant amount of bitcoin, valued at around $15 billion at the time, and froze several assets linked to Chen, including luxury items and properties purchased with the stolen funds.

Chen and Prince Group have denied the allegations, but US prosecutors are actively pursuing the case. The US government has accused Chen of operating scam centers in Cambodia, using forced labor to defraud victims in multiple countries.

Despite the extradition of Chen to China, questions remain about the possibility of him facing charges in the US due to the lack of a formal extradition treaty between the two countries.

The alleged scam involved manipulating victims into transferring cryptocurrency under false pretenses, resulting in significant financial losses. Federal authorities are working to recover the stolen assets and hold all perpetrators accountable.