Federal law enforcement officials have made a historic move, seizing $15 billion in bitcoin, marking the largest cryptocurrency seizure in the history of the Department of Justice (DOJ). This substantial cache of digital currency was linked to Chen Zhi, the chairman of the Prince Group. Prosecutors allege that this organization has secretly evolved into one of Asia’s most significant transnational criminal entities.
Court documents reveal disturbing details about the operations of the Prince Group, which purportedly ran at least ten forced-labor camps throughout Cambodia. Individuals were reportedly held against their will and coerced into participating in fraudulent cryptocurrency investment schemes known as “pig butchering.” This insidious approach involves scammers pretending to build a trusting relationship with their victims before manipulating them into investing in fake cryptocurrency platforms. Such schemes have resulted in billions of dollars being stolen from global victims, with funds illicitly laundered to obscure their origins.
FBI Director Kash Patel emphasized the magnitude of this operation, stating, “The FBI and partners executed one of the largest financial fraud takedowns in history.” He added that trafficked workers were confined in “prison-like compounds” and forced to perpetuate online scams on a massive scale, targeting countless individuals, including many in the United States.
John A. Eisenberg, Assistant Attorney General for National Security, stated, “This indictment and historic forfeiture, the largest in Department history, reflect our commitment to using every tool at our disposal to ensure such crimes do not pay.” The scope of the investigation has underscored the severity of the alleged offenses and the federal government’s determination to combat such rampant criminal activity.
According to prosecutors, the Prince Group was established around 2015, initially characterized as a real estate, financial services, and consumer service provider. However, investigators assert that Zhi and his senior associates transformed it into a thriving criminal organization, profiting immensely from the operation of scam compounds. Trafficked workers reportedly lived in dormitory-like conditions surrounded by barbed wire, subjected to violence and coercion as they executed fraudulent schemes.
Court documents further indicate that Zhi was “directly involved” in the mistreatment of workers within these camps and maintained detailed records of profits and operational metrics from the automated call centers employed to contact potential scam victims. Zhi has yet to be apprehended and faces serious charges of wire fraud conspiracy and money laundering conspiracy.
Leading the investigation is the FBI’s New York Joint Asian Criminal Enterprise Task Force, along with the FBI’s Virtual Asset Unit. In a concurrent measure, the Treasury Department has officially designated the Prince Group as a transnational criminal organization, imposing sanctions on Zhi and over 100 affiliates and associated entities engaged in these illicit activities.
