The U.S. government has made a groundbreaking seizure of bitcoin valued at nearly $15 billion and has charged Chen Zhu, Chairman of the Prince Holding Group, with wire fraud and money laundering. This seizure, noted as the largest forfeiture action in the history of the Justice Department, is part of an indictment that was unsealed in federal court in Brooklyn, New York.
Prosecutors allege that Chen, alongside unnamed co-conspirators, took advantage of forced labor at various cyber scam centers in Cambodia. These operations reportedly defrauded potential investors out of billions, with proceeds used to finance luxurious purchases, including yachts, jets, and even artwork by Picasso.
Currently, Chen is at large. If apprehended, he could face a prison sentence of up to 40 years. The indictment detailed harrowing conditions for individuals held against their will in these compounds, where they were coerced into participating in fraudulent investment schemes. These schemes, referred to as “pig butchering,” entail building trust with victims before defrauding them of their money.
U.S. officials have characterized the Prince Holding Group as a front for one of the largest transnational criminal organizations in Asia. Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche emphasized in a joint statement that this action constitutes a critical blow against human trafficking and cyber-enabled financial fraud. They underscored the U.S. commitment to dismantle criminal enterprises that exploit vulnerable populations for profit.
As the investigation unfolds, no representatives from the Prince Holding Group or the Cambodian government have publicly commented on the indictment. Concurrently, U.S. and British authorities imposed sanctions on Chen’s company and seized its assets, with the Treasury Department labeling it a transnational criminal entity.
In a concerning trend, the Treasury Department reported that American citizens lost over $10 billion to these Southeast Asia-based scams last year, marking a staggering 66% increase from the previous year. Most scam operations are centered in Cambodia and Myanmar, predominantly run by Chinese criminal organizations.
Jason Tower, a senior analyst at the Global Initiative Against Transnational Organized Crime, stated that this coordinated effort by the U.S. and the U.K. marks a significant step toward dismantling Chinese crime organizations and the rising scam economy in Southeast Asia. He noted, however, that these groups have shown a remarkable ability to adapt to enforcement actions, often expanding their operations in response to crackdowns.
He highlighted that regardless of governmental efforts from China and surrounding nations, these criminal organizations have continuously found ways to operate, including utilizing satellite internet, solar power, and other methods to maintain their activities. The recent U.S. indictment and U.K. sanctions send a strong message ahead of the upcoming Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur, signaling increased pressure on these organizations from various fronts.
