The US Department of Justice has filed a civil forfeiture complaint against approximately 127,271 bitcoin — valued at more than $14 billion — allegedly linked to an international fraud and money laundering network.
Federal prosecutors said the bitcoin, described as “proceeds and instrumentalities” of criminal schemes, was seized from unhosted wallets controlled by Chen Zhi, founder and chairman of the Cambodia-based Prince Holding Group. The funds are now in U.S. custody, per a press release.
The action marks the largest cryptocurrency forfeiture in the department’s history, the DOJ said.
An accompanying indictment unsealed in the Eastern District of New York charges Chen, also known as “Vincent,” with wire fraud conspiracy and money laundering conspiracy. According to prosecutors, Prince Group operated forced-labor compounds across Cambodia where individuals were coerced into running “pig butchering” scams, or fraudulent operations that defrauded victims in the U.S. and abroad of billions of dollars.
Chen remains at large, US officials said. The FBI’s New York Joint Asian Criminal Enterprise Task Force and the Bureau’s Virtual Asset Unit participated in the investigation.
“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” United States Joseph Attorney Nocella said in a statement.
Investigators allege that Chen and his associates laundered criminal proceeds through luxury purchases and high-value assets, including yachts, private jets, rare collectibles, and a Picasso painting acquired via a New York auction house.
If convicted, Chen faces up to 40 years in prison.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Michael McSweeney before publication.
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Source: https://blockworks.co/news/doj-seeks-forfeiture-of-more-than-14b-in-bitcoin-tied-to-global-fraud-ring
