The U.S. government has seized about $15 billion worth of Bitcoin connected to what prosecutors call one of the largest cryptocurrency fraud and human trafficking operations ever uncovered.
Federal prosecutors in Brooklyn have charged Chen Zhi, also known as “Vincent,” the founder and chairman of Cambodia’s Prince Holding Group, with wire fraud conspiracy and money laundering conspiracy. If convicted, Chen faces up to 40 years in prison.
A criminal empire disguised as business
According to the indictment, Chen ran a network of forced-labor scam compounds across Cambodia where people were held against their will and made to carry out pig butchering cryptocurrency scams. The schemes stole billions of dollars from victims in the United States and around the world. Chen remains at large.
According to prosecutors, Prince Group presented itself as a legitimate real estate and financial services company operating in more than 30 countries. In reality, it functioned as a massive criminal organization, using scam compounds in Cambodia to carry out fraudulent cryptocurrency schemes.
How the scams worked
The scams often began on social media or messaging apps. Perpetrators built trust with victims, convinced them to invest in fake crypto opportunities, and then stole their money. In the U.S., prosecutors say a Brooklyn-based network helped move millions of dollars from more than 250 victims.
The indictment describes how workers were trafficked into compounds surrounded by barbed wire and forced to carry out scams under threats of violence. Chen allegedly kept ledgers tracking profits and communications about punishment for workers, including instructions not to “beat [victims] to death.”
Record-breaking seizure and fallout
Officials say the 127,271 Bitcoin recovered from Chen’s operation make this the largest forfeiture action in the Justice Department’s history. The cryptocurrency, now in U.S. government custody, was allegedly stored in wallets that Chen personally controlled.
U.S. Attorney Joseph Nocella said Chen directed “one of the largest investment fraud operations in history.” He added, “Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world.”
Prosecutors say Chen and his executives used their political connections to avoid interference and paid bribes to officials in several countries. They laundered the stolen money through gambling and crypto mining businesses, as well as through complex cryptocurrency transfers designed to hide the source of the funds.
Some of the money was spent on luxury goods, including yachts, private jets, art, and even a Picasso painting.
Alongside the indictment, the U.S. Treasury Department designated Prince Group as a transnational criminal organization and sanctioned Chen and several associates. The United Kingdom also announced similar sanctions.
