DOJ Seizes Billions in Bitcoin from Cambodia Crypto Scam
The Department of Justice (DOJ) has made a historic seizure of Bitcoin, amounting to $15 billion, linked to a massive cryptocurrency scam. This action is regarded as the largest forfeiture of its kind in U.S. history, targeting a criminal network known as “pig butchering.”
Background on the Cryptocurrency Scam
The scam was orchestrated by Chen Zhi, also known as “Vincent,” who leads the Prince Holding Group. Federal prosecutors in Brooklyn have unsealed an indictment against Zhi, who is currently at large. He is accused of directing a fraudulent operation that exploited vulnerable workers in Cambodia.
Details of the Allegations
Chen Zhi, 37, allegedly oversaw forced labor compounds where trafficked individuals executed scams. These scams involved convincing victims online through fake romantic stories, false financial emergencies, or enticing cryptocurrency investment offers, a practice referred to as “Sha Zhu Pan.”
Operations and Scale
The businesses under Zhi’s control claimed to engage in various sectors, including real estate and finance, across more than 30 countries. At its peak, the operation reportedly generated up to $30 million in illicit profits daily.
Seizure and Legal Actions
- The DOJ confiscated 127,271 bitcoins from wallets managed by Zhi.
- Evidence presented in court included images of workers subjected to violence.
- Prince Group has been designated as a “transnational criminal organization” by the Treasury Department.
According to U.S. Attorney Joseph Nocella, Zhi’s activities have fueled an epidemic of investment fraud. The FBI and other law enforcement agencies have described this operation as one of the largest fraud takedowns in history.
Current Status and Implications
The investigation into this extensive network is ongoing, with sanctions imposed on Zhi and his associates. The DOJ’s actions have highlighted the growing problem of cryptocurrency-related scams and their impact on innocent victims worldwide.
As law enforcement intensifies its focus on fraudulent activities in the crypto space, this case underscores the challenges posed by digital financial crimes and the necessary measures to combat them.
