In a significant development in cryptocurrency regulation, the Department of Justice (DOJ) has announced the seizure of $15 billion worth of Bitcoin linked to an extensive fraud network known for utilizing “pig butchering” tactics. This event marks what officials describe as the largest forfeiture action in U.S. history. Investigators from the DOJ have unsealed an indictment against Chen Zhi, also referred to as “Vincent,” the alleged leader of Prince Holding Group, which is linked to the crypto scam based in Cambodia.
Zhi, 37, is currently at large and faces serious allegations, including operating forced-labor scam compounds throughout Cambodia. Prosecutors contend that he used violent methods to maintain control over workers, many of whom were coerced into executing fraudulent operations. Evidence presented in court included images of abuse suffered by laborers who were forced to participate in these scams, which typically involved phishing victims through fake romantic relationships, urgent financial pleas, or promises of significant cryptocurrency investments.
U.S. Attorney for the Eastern District of New York, Joseph Nocella, Jr., emphasized the magnitude of Zhi’s alleged operation, labeling it as one of the most extensive investment frauds in history and highlighting its connection to an ever-expanding illicit industry. The DOJ further explained that Zhi’s criminal enterprise generated upwards of $30 million daily at its peak, with the stolen cryptocurrency funneled through unhosted digital wallets, which allowed him to retain control over the funds.
This extensive investigation has revealed that Prince Group, which Zhi claimed was involved in legitimate investments across real estate, finance, and consumer services in more than 30 countries, was instead a facade for one of Asia’s most substantial criminal enterprises. The operation exploited vulnerable individuals, luring them into scams and stripping them of their assets.
The Treasury Department has responded to these findings by designating Prince Group as a “transnational criminal organization” and imposing sanctions on Zhi and his associates. FBI Director Kash Patel remarked on the scale of the operation, indicating that it involved forced labor, money laundering, and deceptive investment schemes targeting countless victims.
This crackdown reflects a broader push by federal authorities to combat financial fraud and the misuse of digital currencies. As the cryptocurrency landscape evolves, regulatory agencies are increasingly focused on enforcing laws designed to protect citizens from fraud.
FOX Business has reached out to both the DOJ and Prince Holding Group for further comments on this ongoing investigation.
