Prince Group Chairman Indicted for Cambodian Forced Labor and Crypto Fraud
In a significant legal action, Chen Zhi, the founder and chairman of the Prince Holding Group, faces serious charges, including conspiracy to commit wire fraud and money laundering. This indictment was announced by federal prosecutors in Brooklyn, New York. Zhi, a 37-year-old UK and Cambodian national, is alleged to have directed operations involving forced labor scams in Cambodia.
Details of the Indictment
The accusations against Chen Zhi stem from his leadership of Prince Group, a major multinational conglomerate based in Cambodia. Under his guidance, the organization gained notoriety for running compounds where individuals were allegedly held against their will. These victims were coerced into participating in cryptocurrency fraud schemes, referred to as “pig butchering” scams. Victims, particularly from the United States, reportedly lost billions of dollars to these operations.
Major Legal Actions Taken
- The U.S. Attorney’s Office filed a civil forfeiture complaint against 127,271 Bitcoin, valued at roughly $15 billion.
- This forfeiture action is noted as the largest in the history of the U.S. Department of Justice.
- The complaint includes assets stored in unhosted cryptocurrency wallets controlled by Zhi.
Attorney General Pamela Bondi emphasized the government’s commitment to combat human trafficking and financial fraud. FBI Director Kash Patel termed the takedown as one of the largest financial fraud operations executed to date.
The Operation of Prince Group
Founded around 2015, Prince Group ostensibly aims to focus on real estate, financial, and consumer services. However, investigators allege that it operates as a criminal enterprise on a massive scale.
Victims of these scams were often targeted online through social media, where they were misled into investing cryptocurrency with false promises of returns. The operation involved extensive networks that facilitated fraudulent transactions, drawing victims from across the globe.
Living Conditions of Victims
Inside the scam compounds, workers were allegedly subject to harsh conditions, often surrounded by barbed wire and high walls. Reports indicate that Zhi personally oversaw the operations and used violent methods to maintain control over the workers.
Financial Implications
The Prince Group’s fraudulent activities are linked to drastic financial exploitation, contributing to an epidemic of investment scams impacting global markets. The FBI’s Internet Crime Complaint Center reported that cryptocurrency fraud was responsible for over $5.8 billion in losses in 2024 alone.
Potential Consequences
If convicted, Chen Zhi could face up to 40 years in prison. In conjunction with the indictment, he and his associated entities have been designated as a transnational criminal organization. Sanctions have also been imposed by the U.S. Department of the Treasury and the United Kingdom’s Foreign Office.
The investigation, which involves multiple jurisdictions, continues with the FBI seeking information regarding Zhi and any related criminal activities. If anyone possesses details about this case, they are encouraged to reach out to the FBI.
This unfolding situation represents a critical step toward addressing the intersection of human trafficking and cyber fraud, highlighting the efforts of law enforcement to protect victims and recover stolen assets.
