Prosecutors in the United States have charged Cambodia’s Prince Group with wire fraud and money laundering conspiracy, after seizing over $14 billion worth of Bitcoin as part of one of the biggest financial takedowns in history.
Summary
- U.S. prosecutors have charged Cambodia’s Prince Group and its chairman, Chen Zhi, with wire fraud and money laundering.
- Prince Group was behind a massive crypto scam empire that used trafficked workers.
- Chen faces up to 40 years in prison if convicted.
Cambodia’s Prince Group is a conglomerate led by Chinese-Cambodian tycoon Chen Zhi, which presented itself as a legitimate multinational business spanning property development, finance, and consumer services. However, according to the US Department of Justice, it was all a facade to mask an extensive criminal empire that exploited thousands of victims through crypto scams, human trafficking, and money laundering.
The DOJ has indicted Chen, who serves as the chairman of the group and is a dual citizen of Cambodia and the United Kingdom, accusing him of orchestrating a massive transnational network set up to defraud investors and launder illicit funds through a web of shell companies and scam operations spread across Southeast Asia.
According to court filings, Chen was the man in charge of at least ten scam compounds across Cambodia, where trafficked workers were allegedly forced to run pig butchering scams targeting victims around the world.
Cambodia is infamous for hosting such scam compounds and is among the hotspots for criminal operations in Southeast Asia, where countries like Myanmar, Laos, the Philippines, Malaysia, and Vietnam have also seen a surge in similar networks.
“Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States,” Assistant Attorney General for National Security John A. Eisenberg said in an accompanying statement.
Compounds controlled by Chen reportedly hosted “phone farms,” which were set up by Chen’s accomplices who procured millions of mobile phone numbers to reach as many victims as possible. Two of these farms, uncovered during the crackdown, reportedly had 1,250 mobile phones that controlled around 76,000 social media accounts used for scams.
Authorities also uncovered documents belonging to the Prince Group that laid out detailed blueprints on how to build trust with potential victims. Advisory included using realistic social media personas, maintaining consistent communication, and avoiding profile pictures of women that were “too beautiful” to make the scam look more genuine.
Prosecutors said Chen and his associates used the stolen proceeds to fund a lavish lifestyle that included private jets, luxury properties, and rare artwork, all while concealing the criminal origins of their wealth through complex money laundering channels, including their online gambling and cryptocurrency mining operations.
Under Chen’s direction, Prince Group members used sophisticated cryptocurrency laundering techniques such as “spraying” and “funneling.” Spraying involves quickly dispersing stolen assets across thousands of wallet addresses to make tracing more difficult, while funneling concentrates these funds through intermediary wallets and exchanges before converting them into stablecoins or fiat currency.
Investigators believe the group relied on cryptocurrency mixers, over-the-counter brokers, and offshore exchanges that allowed the proceeds to circulate undetected through the global financial system.
Authorities seized roughly 127,271 Bitcoin from wallets controlled by Chen and his network, which is currently in custody under U.S. jurisdiction as the investigation continues.
Chen faces up to 40 years in prison if convicted, according to the Department of Justice, and remains at large. Authorities have not disclosed his whereabouts, but international efforts to locate and apprehend him are reportedly ongoing.
Meanwhile, Price Group has been labeled as a transnational criminal organization, and those associated with the group have been sanctioned in the U.S.
Last year, the U.S. sanctioned a separate Cambodian business empire led by tycoon and senator Ly Yong Phat for running similar crypto scam operations that exploited trafficked workers.
Source: https://crypto.news/us-seizes-14b-in-bitcoin-tied-to-scams-run-by-cambodias-prince-group/
