The U.S. government has made a significant move by seizing $15 billion in bitcoin from a Cambodian business conglomerate accused of orchestrating a global cryptocurrency scam. Federal prosecutors allege that Chen Zhi, the founder and chairman of Prince Holding Group, led a wide-reaching criminal operation in Cambodia that exploited forced labor to defraud victims in the U.S. and other countries.
A federal court in Brooklyn recently unsealed an indictment against the 37-year-old Chen, charging him with wire fraud and money laundering. The allegations reveal a troubling scenario where thousands of victims were misled and manipulated into fraudulent investments. “By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal,” stated Attorney General Pamela Bondi alongside Deputy Attorney General Todd Blanche. The complaint marks the largest forfeiture action ever undertaken by the Department of Justice.
Chen remains elusive, with U.S. authorities indicating he is currently at large. If convicted, he faces a potential 40-year prison sentence. “Today the FBI and partners executed one of the largest financial fraud takedowns in history,” remarked FBI Director Kash Patel. He described Chen as managing a substantial criminal network that exploited millions of innocent victims through forced labor and sophisticated financial scams.
In a coordinated effort, the U.S. Treasury Department’s Office of Foreign Assets Control imposed extensive sanctions against 146 entities tied to the Prince Group, which has been officially designated a transnational criminal organization. Prince Holding Group is publicly acknowledged as one of Cambodia’s largest conglomerates, with interests spanning real estate development, banking, finance, and consumer services.
Although the company did not respond to requests for comment, it has previously denied any connection to fraudulent activities. Federal prosecutors characterized the cryptocurrency scheme run by Chen as a “pig butchering” scam, in which scammers trick victims into making false investment promises through social media and messaging platforms. The stolen funds were then laundered and used for luxury goods and escapes.
The Department of Justice has also pointed to allegations of human trafficking, claiming that the Prince Group targeted individuals worldwide and utilized local networks to facilitate its operations, including one from Brooklyn. Reports claim that the scam’s perpetrators trafficked hundreds of individuals and subjected them to work in oppressive conditions within compounds throughout Cambodia, characterized as “violent, forced labor camps” surrounded by high barriers.
To evade law enforcement, Chen and top executives allegedly resorted to bribing officials and leveraging political clout, underscoring their strong connections within the Cambodian elite. Mark Taylor, a former associate focused on human trafficking in Cambodia for the nonprofit Winrock International, emphasized that Chen’s connections provided him with “well-protected” status, enabling the proliferation of online scams. He indicated that Cambodia serves as both a base of operations and a money laundering hub in the region.
Additionally, independent research group Cyber Scam Monitor has identified over 200 online scamming centers and casinos operating in Cambodia, highlighting the extensive nature of these fraudulent activities, corroborated by first-hand accounts from former scam workers and various media investigations.
