The United States authorities have taken a historic step in the fight against cryptocurrency-related crime, seizing more than 127,000 bitcoins, valued at approximately $15 billion. The seizure comes alongside criminal charges against Cambodian businessman Chen Zhi, chairman of the Prince Holding Group, who is accused of running one of the largest crypto fraud operations in history.
Federal prosecutors in Brooklyn have charged Chen with wire fraud and conspiracy to commit money laundering. According to the Department of Justice, Chen allegedly orchestrated a multi-year scheme using “pig butchering” scams. These schemes tricked victims into investing in fake cryptocurrency opportunities, resulting in significant financial losses.
Forced Labor Allegations and Global Operations
The case has drawn attention not only for its scale but also for the human rights concerns tied to the operation. Court documents reveal that workers were trafficked and detained in compounds in Cambodia. These individuals were forced to manage thousands of fake social media profiles, contacting potential victims and manipulating them into sending crypto assets. Prosecutors state that Chen authorized the use of violence to maintain control over these operations.
The compounds, linked to the Prince Group’s casino operations, reportedly included extensive “phone farms” where employees executed fraudulent campaigns targeting unsuspecting investors worldwide. Chen, also known as Vincent, remains at large, and if convicted, he could face up to 40 years in prison.
Historic Bitcoin Forfeiture
The 127,271 bitcoins seized in this case represent the largest cryptocurrency forfeiture in U.S. history. These assets were stored in unhosted wallets controlled by Chen and his associates. Investigators allege that the group concealed the origins of the funds using shell companies, online gambling operations, and crypto mining activities.
U.S. prosecutors indicated that they might use the seized bitcoins to reimburse victims, though this remains subject to court approval. The scale of the seizure underscores the growing significance of regulatory oversight and enforcement in the cryptocurrency sector.
Sanctions and Asset Freezes
In coordination with the criminal charges, the U.S. Treasury Department has designated Prince Holding Group as a transnational criminal organization. The designation bars U.S. entities from conducting business with the conglomerate. UK authorities have also acted, freezing over $172 million (£130 million) in assets linked to Chen, including a London property valued at $16 million (£12 million).
Treasury Secretary Scott Bessent emphasized the impact of transnational crypto fraud, stating that such operations have cost Americans billions, often wiping out life savings in a matter of minutes. The sanctions extend to Prince Group subsidiaries across real estate, financial services, and technology sectors, aiming to prevent the use of legitimate businesses to conceal criminal activity.
Prosecutors note that Chen’s network moved illicit proceeds through multiple jurisdictions, investing in luxury assets such as private jets, yachts, and fine art. Court filings describe a small inner circle of executives overseeing operations across at least 30 countries, some allegedly bribing foreign officials to facilitate cryptocurrency transactions intended to bypass international scrutiny.
Southeast Asia’s Emerging Role in Crypto Fraud
This case highlights Southeast Asia’s increasing presence in global crypto-related cybercrime. The United Nations estimates that over 100,000 individuals in Cambodia have been forced into scam operations. Similar criminal networks reportedly operate in Myanmar, Laos, and the Philippines. Experts say the Prince Holding Group’s international reach allowed it to scale these scams rapidly.
Jacob Daniel Sims, a researcher at Harvard University’s Asia Center, stated that U.S. action against Chen “changes the risk calculus” for investors and financial institutions engaging with Cambodian elites. He added that the sanctions signal a rare and significant pushback against elite-driven cybercrime operations.
Despite the charges, Prince Holding Group continues to publicly present itself as one of Cambodia’s largest conglomerates, operating more than 100 real estate, financial, and tourism businesses. Cambodian officials have not issued an official response to the ongoing case.
The Global Impact of Crypto Scams
The indictment against Chen Zhi sheds light on the broader issue of crypto scams and the evolving regulatory landscape. According to a University of Texas study, global losses from “pig butchering” scams exceeded $75 billion between 2020 and 2024. The FBI reported $5.8 billion in crypto investment fraud losses in 2024 alone.
While this case alone will not dismantle the global network of crypto scams, it marks a critical escalation in international enforcement. The U.S. seizure of $15 billion in bitcoin and the targeting of high-profile operators like Chen Zhi demonstrate a more aggressive approach to combating fraud and safeguarding investors in the rapidly growing digital asset market.
Experts believe the case will have a long-term impact on how regulators approach cryptocurrency enforcement, particularly in regions with limited oversight. It also underscores the importance of global cooperation, as cross-border fraud increasingly relies on networks operating in multiple jurisdictions.
As cryptocurrency adoption continues to grow, cases like Chen Zhi’s serve as a reminder of both the promise and risks associated with digital assets. Authorities around the world are likely to continue prioritizing enforcement against large-scale fraud, particularly when it intersects with human rights abuses and international financial crime.
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