The US authorities have charged Cambodian businessman Chen Zhi, chairman of Prince Holding Group, for allegedly running one of the largest cryptocurrency fraud operations in history.
The Justice Department seized over 127,000 bitcoins—worth about $15 billion—and imposed sweeping sanctions and asset freezes targeting Chen’s vast business network in multiple countries.
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US Indicts Chen Zhi Over Global Crypto Scam
Federal prosecutors in Brooklyn charged Chen Zhi with wire fraud and money laundering conspiracy in connection with a years-long crypto investment scam. The US Department of Justice said the operation used forced labor to run “pig butchering” scams. These were fraudulent crypto investment pitches that tricked victims into transferring digital assets.
The Justice Department announced the seizure of 127,271 bitcoins, the largest crypto forfeiture in US history. The seized tokens, valued at about $15 billion, were stored in unhosted wallets. Prosecutors said Chen and his associates controlled them. The group allegedly used shell firms, online gambling, and crypto mining to hide the funds’ origins.
According to court filings, workers were trafficked and detained in compounds in Cambodia, where they operated thousands of fake social media profiles to lure investors. Prosecutors said Chen authorized violent enforcement measures to control these workers. One of the compounds, linked to Prince Group’s casino operations, housed extensive “phone farms” used for fraudulent messaging campaigns.
Chen, also known as Vincent, remains at large. He faces up to 40 years in prison if convicted.
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Treasury Sanctions Prince Holding Group and Freezes Assets
The US Treasury Department designated Prince Holding Group as a transnational criminal organization, citing its central role in global online scams. The designation effectively bars US entities from doing business with the conglomerate. UK authorities also froze over $172 million (£130 million) in assets linked to Chen, including a London property valued at $16 million(£12 million).
US Treasury Secretary Scott Bessent said transnational crypto fraud “has cost Americans billions, often wiping out life savings within minutes.” The sanctions extend to Prince Group’s real estate, financial services, and technology subsidiaries, as authorities aim to prevent the company from using legitimate industries to conceal criminal activity.
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Prosecutors said the network moved illicit proceeds through multiple jurisdictions and invested in luxury items, including private jets, yachts, and fine art. Court filings describe Chen’s inner circle as a small group of executives who oversaw operations across at least 30 countries. Several executives allegedly bribed foreign officials and facilitated crypto transactions intended to bypass international scrutiny.
The US Justice Department said it may use the seized bitcoin to reimburse victims, which is pending court approval.
Crypto-Linked Scams in Southeast Asia
The indictment underscores Southeast Asia’s growing presence in the global cyberfraud economy. The United Nations estimates that more than 100,000 people in Cambodia are forced to join scam operations. Similar criminal networks also operate in Myanmar, Laos, and the Philippines.
Experts say Prince Holding Group’s business empire was instrumental in scaling these scams internationally.
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Jacob Daniel Sims, a transnational crime researcher at Harvard University’s Asia Center, said the US action “changes the risk calculus” for investors and banks dealing with Cambodian elites. He added that the sanctions signal “a rare pushback against elite-driven cybercrime economies.”
Despite the charges, Prince Holding Group continues to describe itself as one of Cambodia’s largest conglomerates, operating over 100 real estate, finance, and tourism businesses. Cambodian officials have not publicly commented on the case.
According to a University of Texas study, global losses from “pig butchering” scams exceeded $75 billion between 2020 and 2024. The FBI reported $5.8 billion in crypto investment fraud losses in 2024 alone.
While the indictment is unlikely to dismantle the industry immediately, it marks a significant escalation in international enforcement against crypto-enabled crime.
Source: https://beincrypto.com/us-seizes-15b-bitcoin-charges-cambodian-tycoon-chen-zhi/
