$15 billion worth of bitcoin has been seized by the U.S. authorities from a Cambodian corporation that is accused of operating a global cryptocurrency fraud.
According to federal authorities, Chen Zhi, the chairman and founder of Prince Holding Group, was in charge of a massive criminal network in Cambodia that was based on forced labor and that took billions from victims both domestically and abroad.
The 37-year-old Cambodian national is accused of wire fraud and money laundering in the indictment, which was unsealed in a federal court in Brooklyn on Tuesday.
In a statement, Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche said, “By tearing down a criminal enterprise based on forced labor and deceit, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit.”
The Department of Justice claims that the case is the largest forfeiture action in its history.
The Justice Department said Chen is still at large. He may spend up to 40 years in jail if found guilty.
According to a statement released by FBI Director Kash Patel, the FBI and its partners carried out one of the largest financial fraud takedowns in history today. This person is accused of running a massive criminal network that involved money laundering, investment scams, forced labor, and stolen assets on several continents, all while reportedly targeting millions of innocent people.
On Tuesday, the U.S. Treasury Department’s Office of Foreign Assets Control said that it collaborated with U.K. authorities to impose broad sanctions on 146 companies connected to the Prince Group, which the department has officially classified as a transnational criminal organization.
According to its website, the Prince Holding Group is one of the largest corporations in Cambodia, having operations in consumer services, banking, finance, and real estate development.
A request for comment from CBS News was not immediately answered by the corporation. The business has not officially addressed the most recent accusations and has previously denied any involvement in fraud activities.
Chen’s alleged crypto fraud was referred to by federal authorities as a “pig butchering” scheme, which occurs when con artists trick a victim into making fraudulent investments.
Through messaging apps and social media, the criminal network allegedly persuaded victims to transfer crypto by making false claims that it would be invested, according to the Justice Department. According to the FBI, the fraudsters then stole the funds, laundered it, and utilized the money for opulent items like entertainment and luxury vacation.
Human trafficking allegations
According to federal authorities, the Prince Group used local networks, including one based in Brooklyn, New York, to target victims all around the world. To carry out the scams, the criminals reportedly transported hundreds of individuals and forced them to labor in a network of compound locations around Cambodia. The “violent, forced labor camps” were large dormitories encircled by high walls and barbed wire, according to the Justice Department.
Chen and the senior executives of Prince Group reportedly utilized their political power and paid bribes to public authorities in order to elude law enforcement, the authorities claimed.
Former Winrock International human trafficking expert Mark Taylor said Chen’s integration into the Cambodian elite and “well protected” status by the government demonstrated “the larger role that Cambodia has played as a safe center for this online scamming to prosper.” Chen formerly served as Hun Manet, the prime minister of Cambodia,’s personal advisor.
Many of its operations are physically located in Cambodia, but the country serves as a hub for money laundering around the region, according to Taylor.
According to independent research company Cyber Scam Monitor, based on media reports, field surveys, and first-hand testimony from former scammers, there are over 200 online casinos and scamming centers in Cambodia alone.
