TL;DR
- The U.S. Department of Justice has filed the largest forfeiture action in its history, valued at $15 billion in Bitcoin.
- The funds are linked to Chen Zhi, leader of Prince Group, accused of cryptocurrency fraud and human trafficking.
- The operation dismantles a criminal network that forced people to carry out “pig butchering” scams.
The U.S. Department of Justice has just delivered an unprecedented blow against transnational crime. They recently announced the largest forfeiture action in their history, with an approximate value of $15 billion in Bitcoin.
These funds are directly related to Chen Zhi, also known as “Vincent,” the founder and chairman of Prince Holding Group (Prince Group), a Cambodian business conglomerate accused of running a vast network of cryptocurrency fraud and forced labor.
The formal indictment filed in Brooklyn details how Chen Zhi, currently a fugitive, orchestrated the operation of scam compounds in Cambodia. In these locations, hundreds of people were held against their will and forced to carry out cryptocurrency investment fraud schemes, known as “pig butchering” scams.
These operations defrauded billions of dollars from victims in the United States and around the world, plunging countless individuals into misery.
Dismantling a Criminal Empire of Cyberfraud and Human Trafficking
High-ranking officials from the Department of Justice and other agencies highlighted the magnitude and horror of this operation. Attorney General Pamela Bondi described the action as “one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud.” U.S. Attorney Joseph Nocella emphasized that Prince Group’s scams caused “billions of dollars in losses and untold misery,” fueled by the exploitation of trafficked workers.
The investigation revealed that Prince Group, under Zhi’s direction, not only perpetrated cryptocurrency fraud and forced labor but also used its political influence and paid bribes to protect its criminal enterprise.
The stolen funds were laundered through complex cryptocurrency techniques and seemingly legitimate companies within the group, and then used for extravagant luxury purchases.
The massive Bitcoin seizure, already in the custody of the U.S. government, sends a strong message: the United States will pursue cybercriminals regardless of their location or their sophisticated methods. In parallel, the Treasury Department has designated Prince Group as a transnational criminal organization and imposed sanctions, in an internationally coordinated effort to dismantle this empire
