DOJ’s Largest Bitcoin Seizure: $15 Billion In BTC Linked To Cambodian ‘Pig Butchering’ Scam

The US Department of Justice (DOJ) has announced its largest cryptocurrency seizure to date, confiscating approximately $15 billion worth of Bitcoin (BTC) from cryptocurrency wallets linked to a man overseeing a large-scale “pig butchering” fraud operation based in Cambodia. 

This significant operation was detailed in an indictment unsealed in federal court in Brooklyn, New York, on Tuesday, charging the alleged fraudster, Chen Zhi, also known as “Vincent.”

Prince Group’s Alleged Fraud Schemes

Chen Zhi is the founder and chairman of the Prince Holding Group, a multinational conglomerate based in Cambodia. Prosecutors allege that under his leadership, the group evolved “in secret” into one of Asia’s most extensive transnational criminal organizations. 

US Attorney Joseph Nocella characterized Zhi’s efforts as directing “one of the largest investment fraud schemes in history,” contributing to what the Attorney calls as an “illicit industry” that has reached “epidemic levels.”

According to Nocella, “Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will.” 

Hundreds Trafficked For Bitcoin Fraud 

The US Attorney’s Office revealed that individuals held in these compounds were coerced into participating in cryptocurrency investment fraud schemes, commonly referred to as “pig butchering” scams. 

The funds transferred by victims were stolen and laundered to benefit the fraudsters. The perpetrators allegedly cultivated relationships with their victims over time, earning their trust before taking their money. Prosecutors highlighted that “hundreds of individuals” were trafficked and compelled to work in these scam operations.

Furthermore, Zhi and a network of senior executives within the Prince Group are accused of leveraging political connections across multiple countries to safeguard their criminal activities. They allegedly paid bribes to public officials, effectively evading law enforcement scrutiny.

When writing, Bitcoin trades at $112,340, resuming its downtrend after a brief recovery above $115,000 on Monday. As of now, Bitcoin trades nearly 11% from all-time high levels. 

Featured image from DALL-E, chart from TradingView.com