Federal authorities have seized approximately $15 billion in bitcoin as part of a significant crackdown on fraudulent schemes linked to money laundering that allegedly exploited trafficked workers in Southeast Asia. The announcement, made public on October 14, revealed an extensive indictment against Chen “Vincent” Zhi, a 37-year-old accused of masterminding large-scale cryptocurrency scams.
Zhi is alleged to have operated multiple forced-labor facilities in Cambodia, wherein workers were reportedly confined against their will and coerced into participating in fraudulent cryptocurrency investment schemes, commonly referred to as “pig butchering” scams. This form of fraud involves building fake romantic relationships with victims to secure significant investments into sham cryptocurrency platforms.
Currently at large and believed to be in Cambodia, Zhi faces serious charges, including wire fraud conspiracy and money laundering conspiracy. The indictment claims he evolved the Prince Holding Group—a multinational conglomerate—into one of Asia’s most significant transnational criminal operations, profiting immensely from these scams. As a result of these allegations, the U.S. Department of the Treasury has designated the Prince Group as a transnational criminal organization and has coordinated sanctions with the United Kingdom against the entity and its affiliates.
The total bitcoin seized amounts to around 127,271, worth approximately $14.2 billion, which prosecutors are now seeking to retain permanently in what they have called “the largest ever forfeiture action” in the history of the U.S. Department of Justice. John Eisenberg, an assistant attorney general for the National Security Division, emphasized the scale and brutality of Zhi’s operation, noting that workers were confined in inhumane conditions and forced to conduct scams that targeted thousands globally, including many American citizens.
The indictment details how the Prince Group allegedly trafficked hundreds of workers under false pretenses. These individuals were often drawn in by fake job offers, only to find themselves in tightly controlled environments where they had to commit online fraud under threats of violence and torture. Descriptions of the compounds paint a grim picture, with facilities surrounded by high walls and barbed wire, resembling violent labor camps.
Beyond the fraudulent activities, Zhi allegedly benefited personally from the operation, utilizing illicit profits for a lavish lifestyle that included luxury travel, high-end collectibles, and properties. Prosecutors indicated that he and his associates funneled these proceeds into high-value items such as yachts, private jets, and even artwork by renowned artists like Picasso.
Utilizing advanced methods for laundering money, the Prince Group reportedly obscured the origins of their proceeds through online gambling and cryptocurrency mining operations. The scheme involved complex strategies to separate and then consolidate large quantities of cryptocurrency across multiple digital wallets, helping to veil the profits derived from their criminal activities.
Overall, this major federal case highlights the intersection of organized crime, human trafficking, and cryptocurrency fraud, raising critical questions about the accountability and regulation of emerging financial technologies in combating such abuses. If convicted, Zhi could face up to 40 years in prison. The pursuit of justice continues as authorities aim to dismantle this nefarious network and safeguard potential future victims.
