Feds seize $15 billion in bitcoin after busting alleged global crypto scam
U.S. Government Seizes $15 Billion in Bitcoin from Cambodian Business Conglomerate
The U.S. government has made a major move by seizing $15 billion in bitcoin from a Cambodian business conglomerate accused of running a global cryptocurrency scam. Federal prosecutors have alleged that Chen Zhi, the founder and chairman of Prince Holding Group, orchestrated a massive criminal network in Cambodia that exploited victims through forced labor and fraudulent cryptocurrency schemes.
The indictment against Chen Zhi was unsealed in a federal court in Brooklyn, charging the 37-year-old Cambodian national with wire fraud and money laundering. According to Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche, this action is a significant step in dismantling criminal enterprises that exploit vulnerable individuals for profit.
If convicted, Chen faces a maximum penalty of 40 years in prison. Despite remaining at large, the FBI and its partners have executed one of the largest financial fraud takedowns in history. FBI Director Kash Patel emphasized the extent of Chen’s alleged criminal activities, which spanned multiple continents and targeted millions of innocent victims through forced labor, money laundering, and investment scams.
The U.S. Treasury Department’s Office of Foreign Assets Control announced sanctions against 146 entities associated with the Prince Group, designating it as a transnational criminal organization. Despite being listed as one of the largest conglomerates in Cambodia with interests in real estate, banking, finance, and consumer services, the Prince Holding Group has not publicly responded to the allegations.
Details of the Cryptocurrency Fraud Scheme
Federal prosecutors described the cryptocurrency fraud orchestrated by Chen as a “pig butchering” scam, where victims were lured into phony investments. The Justice Department revealed that victims were convinced to transfer cryptocurrency under false pretenses of investment, only for the scammers to steal the funds, launder them, and use the proceeds for personal luxuries.
Allegations of human trafficking have also surfaced, with prosecutors stating that Prince Group operated forced labor camps in Cambodia. Victims were trafficked and coerced into working in compounds under harsh conditions. To evade law enforcement, Chen and his executives allegedly engaged in bribery and utilized political influence.
Mark Taylor, a former human trafficking expert, highlighted Chen’s connections to the Cambodian elite and his protection by the government. Cambodia has been identified as a hub for online scamming activities, with numerous scam centers and casinos operating in the country.
The crackdown on Chen Zhi and the Prince Group signifies a significant victory in the fight against transnational criminal organizations that exploit individuals for financial gain. The Justice Department’s actions demonstrate a commitment to holding perpetrators of financial fraud and human trafficking accountable.
For more updates on this developing story, stay tuned for further announcements from law enforcement agencies and government authorities.
