TLDR
- Chen Zhi, chairman of Prince Group, was arrested in Cambodia and extradited to China.
- He is linked to a network of “pig-butchering” scams and forced labor operations.
- The U.S. is claiming the largest Bitcoin seizure in its history from this haul.
This Wednesday, businessman and founder of the Prince Group conglomerate, Chen Zhi, was detained and deported to China in an operation that is shaking the foundations of global cybersecurity. Beijing authorities requested his transfer following a joint investigation linking the businessman to a criminal network and a $15 billion Bitcoin crypto scam.
The tycoon, whose Cambodian citizenship was revoked late last year, was identified by the United States Department of Justice (DOJ) as the ringleader of a vast fraudulent operation. According to authorities, the network operated through forced-labor-based scam compounds in Cambodia, specializing in the “pig-butchering” technique—a form of romantic and investment fraud that generates billions in illicit profits.
Geopolitical Conflict Over the Bitcoin Seizure
This case has escalated into a high-level diplomatic dispute. In October, the DOJ initiated an unprecedented forfeiture action to recover the proceeds of this $15 billion Bitcoin crypto scam, which includes hundreds of millions in real estate assets.
However, China has responded with direct accusations against Washington, alleging that part of these funds stems from a previous cyber theft against a Chinese mining pool in 2020. While Beijing asserts that the U.S. government orchestrated the theft of more than 120,000 BTC, North American authorities maintain that the assets in their custody are the direct result of money laundering and fraud connected to Chen Zhi and his entities.
In summary, the capture of this alleged leader represents a significant blow to criminal networks using digital assets for money laundering. The fate of the $15 billion Bitcoin crypto scam remains uncertain as China and the United States dispute the legitimacy and ownership of the seized funds, setting a critical precedent in crypto-asset jurisprudence and international cooperation.
