Chen Zhi has been implicated in a significant indictment related to extensive fraudulent operations, specifically linked to a complex scam known as “pig-butchering,” or ‘sha zhu.’ The indictment details how Chen was intricately involved in the management of several scam compounds, meticulously keeping records that included tracking the profits generated from these schemes. Disturbingly, it also reportedly contains “ledgers of bribes to public officials,” suggesting a network potentially aided by corrupt practices.
Among the allegations, there is a shocking revelation of two scam centers purportedly outfitted with 1,250 mobile phones, which collectively managed a staggering 76,000 social media accounts. The indictment further accuses Chen of maintaining disturbing images that exemplify the violent tactics employed by the Prince Group against individuals trafficked to these centers, with graphic content depicting severely injured victims.
In a historic move, U.S. law enforcement seized 127,271 bitcoins from the Prince Group operation, amounting to over $15 billion at the time of confiscation. This represents the largest monetary seizure in the history of the U.S. Justice Department, surpassing previous records set in 2022 and significant seizures in prior years. For context, the previous milestones included the seizure of 95,000 bitcoins from a Manhattan couple who pleaded guilty to theft from the Bitfinex exchange and another billion-dollar seizure linked to the infamous Silk Road dark web market.
In a notable twist, the UK police also confiscated 61,000 bitcoins, valued at $6.7 billion, from a Chinese individual accused of conducting an investment scam. However, this sum, while substantial, pales in comparison to the amounts taken in the U.S.
Experts in the field, such as Ari Redbord from the crypto-tracing firm TRM Labs, have highlighted the significance of this seizure, not just for its unprecedented scale but for what it reveals about the organized nature of these scams. Redbord points out that these operations are not isolated incidents; rather, they are large-scale factories, often reliant on forced labor, and deeply entrenched within a sophisticated money-laundering network stretching across several Southeast Asian countries and beyond.
The proliferation of scam centers has been alarming, with reports indicating their rapid expansion and technological advancements in operations over recent years. Furthermore, they are no longer confined to Southeast Asia, with new sites emerging across the Middle East, Eastern Europe, Latin America, and West Africa.
Redbord emphasized the importance of targeting the financial infrastructure—shell companies, banks, exchanges, and real estate—to dismantle the economic frameworks that sustain these criminal enterprises. He remarked that this approach is emblematic of a modern counter-threat finance campaign that is coordinated, data-driven, and global in scope, highlighting a significant effort by the U.S. and UK to combat this growing threat.
