Federal prosecutors have recently seized $15 billion from Chen Zhi, alleged kingpin of a scam operation that employed imprisoned laborers to deceive unsuspecting individuals into investing in fraudulent funds. Described as “pig butchering” scams, these operations have been known to last for months, during which scammers establish phony romantic relationships with victims through social media.
These scams typically begin with the scammers engaging potential victims online, often masquerading as attractive individuals expressing romantic interest. Gradually, the conversation shifts towards enticing the victim to invest in fake investment funds, leading to requests for substantial transfers, often in bitcoin. Disturbingly, many of the scammers themselves are victims—trafficked and confined in heavily guarded compounds designed to exploit their labor.
On Tuesday, an indictment was unsealed in U.S. District Court for the Eastern District of New York, accusing Zhi, the founder and chairman of a Cambodian multinational conglomerate, of leading this forced-labor operation. The indictment alleges that he, alongside unnamed co-conspirators, orchestrated the scam that extracted billions from victims. According to court documents, Zhi and his associates created compounds intended for maximum profitability and ensured the infrastructure was in place to reach a vast number of victims.
Prosecutors outlined various aspects of the operation, including the acquisition of millions of mobile phone numbers and passwords from illegal online marketplaces. They detailed the construction of facilities, such as the “Golden Fortune” compound, pointing to Zhi’s involvement in maintaining documentation regarding “phone farms,” which served as automated call centers facilitating the fraudulent activities.
Zhi is identified as the head of Prince Group, a Cambodian corporate conglomerate that claimed to operate legitimate businesses across more than 30 countries. However, investigations reveal that Zhi and high-ranking executives transformed Prince Group into one of Asia’s largest transnational criminal networks. As of now, Zhi’s location remains unknown as authorities continue to pursue him and those involved in the sprawling scam operation.
