The US authorities have charged Cambodian businessman Chen Zhi, chairman of Prince Holding Group, for allegedly working one of many largest cryptocurrency fraud operations in historical past.
The Justice Division seized over 127,000 bitcoins—value about $15 billion—and imposed sweeping sanctions and asset freezes concentrating on Chen’s huge enterprise community in a number of nations.
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US Indicts Chen Zhi Over World Crypto Rip-off
Federal prosecutors in Brooklyn charged Chen Zhi with wire fraud and cash laundering conspiracy in reference to a years-long crypto funding rip-off. The US Division of Justice stated the operation used pressured labor to run “pig butchering” scams. These had been fraudulent crypto funding pitches that tricked victims into transferring digital belongings.
The Justice Division introduced the seizure of 127,271 bitcoins, the biggest crypto forfeiture in US historical past. The seized tokens, valued at about $15 billion, had been saved in unhosted wallets. Prosecutors stated Chen and his associates managed them. The group allegedly used shell corporations, on-line playing, and crypto mining to cover the funds’ origins.
What’s most fascinating is pockets addresses listed within the US authorities $14B (127K BTC) seizure beforehand had been named in a Milky Unhappy report ~2 years in the past for having weak personal keys and now the USG says they’ve custody of them. https://t.co/sHNwMXhLKH pic.twitter.com/icLWKU33kC
— ZachXBT (@zachxbt) October 14, 2025
In line with court docket filings, staff had been trafficked and detained in compounds in Cambodia, the place they operated hundreds of pretend social media profiles to lure traders. Prosecutors stated Chen licensed violent enforcement measures to regulate these staff. One of many compounds, linked to Prince Group’s on line casino operations, housed in depth “phone farms” used for fraudulent messaging campaigns.
Chen, also referred to as Vincent, stays at massive. He faces as much as 40 years in jail if convicted.
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Treasury Sanctions Prince Holding Group and Freezes Property
The US Treasury Division designated Prince Holding Group as a transnational legal group, citing its central position in world on-line scams. The designation successfully bars US entities from doing enterprise with the conglomerate. UK authorities additionally froze over $172 million (£130 million) in belongings linked to Chen, together with a London property valued at $16 million(£12 million).
US Treasury Secretary Scott Bessent stated transnational crypto fraud “has cost Americans billions, often wiping out life savings within minutes.” The sanctions prolong to Prince Group’s actual property, monetary providers, and know-how subsidiaries, as authorities intention to forestall the corporate from utilizing professional industries to hide legal exercise.
The speedy rise of transnational fraud has price Americans billions of {dollars}, with life financial savings worn out in minutes. Treasury is taking motion to guard People by cracking down on overseas scammers. Working in shut coordination with federal legislation enforcement and… https://t.co/oCbqtMJkAj
— Treasury Secretary Scott Bessent (@SecScottBessent) October 14, 2025
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Prosecutors stated the community moved illicit proceeds via a number of jurisdictions and invested in luxurious objects, together with personal jets, yachts, and tremendous artwork. Court docket filings describe Chen’s inside circle as a small group of executives who oversaw operations throughout at the very least 30 nations. A number of executives allegedly bribed overseas officers and facilitated crypto transactions meant to bypass worldwide scrutiny.
The US Justice Division stated it could use the seized bitcoin to reimburse victims, which is pending court docket approval.
Crypto-Linked Scams in Southeast Asia
The indictment underscores Southeast Asia’s rising presence within the world cyberfraud financial system. The United Nations estimates that greater than 100,000 folks in Cambodia are pressured to hitch rip-off operations. Comparable legal networks additionally function in Myanmar, Laos, and the Philippines.
Consultants say Prince Holding Group’s enterprise empire was instrumental in scaling these scams internationally.
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Jacob Daniel Sims, a transnational crime researcher at Harvard College’s Asia Heart, stated the US motion “changes the risk calculus” for traders and banks coping with Cambodian elites. He added that the sanctions sign “a rare pushback against elite-driven cybercrime economies.”
Regardless of the costs, Prince Holding Group continues to explain itself as one in all Cambodia’s largest conglomerates, working over 100 actual property, finance, and tourism companies. Cambodian officers haven’t publicly commented on the case.
In line with a College of Texas examine, world losses from “pig butchering” scams exceeded $75 billion between 2020 and 2024. The FBI reported $5.8 billion in crypto funding fraud losses in 2024 alone.
JUST IN: The FBI says People misplaced $5.6 billion in cryptocurrency fraud scams final yr
— The Spectator Index (@spectatorindex) September 9, 2024
Whereas the indictment is unlikely to dismantle the business instantly, it marks a major escalation in worldwide enforcement towards crypto-enabled crime.
