Authorities claim the network spanned more than 30 countries, running a complex web of fake investment centers responsible for billions in global losses.

According to court filings from the Eastern District of New York, Chen’s organization operated at least ten fraud hubs across Cambodia. These centers reportedly lured victims into so-called “pig-butchering” scams – a method involving elaborate online relationships designed to trick investors into depositing funds into fraudulent crypto platforms.

The scale of the alleged operation has stunned investigators. The U.S. Department of Justice has already moved to seize 127,271 Bitcoin – valued at roughly $14 billion today – along with private jets, yachts, and other luxury assets linked to Chen’s empire. Meanwhile, the U.S. Treasury Department sanctioned Prince Group TCO and several affiliated entities in Palau, effectively freezing their assets and prohibiting U.S. citizens from engaging in any financial activity with them.

Adding to the international crackdown, the Financial Crimes Enforcement Network (FinCEN) identified another Cambodia-based conglomerate, the Huione Group, as a major laundering hub tied to more than $4 billion in suspicious transactions. Officials say the group also facilitated $37 million in thefts connected to North Korean hacker syndicates. FinCEN confirmed that Huione has now been fully severed from the U.S. financial system.

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Blockchain analyst ZachXBT drew attention to a Bitcoin wallet linked to the investigation – the same one flagged two years ago in the “Milky Sad” report for a private key vulnerability. U.S. authorities are believed to have leveraged that weakness to gain control of the massive stash of Bitcoin now under government custody.

The case represents a turning point in Washington’s efforts to combat global crypto fraud networks. Beyond the charges against Chen Zhi, it signals a broader warning to financial groups exploiting weak regulatory environments to move digital assets across borders unchecked.

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