Federal authorities have seized $15 billion in Bitcoin from Chen Zhi, the alleged mastermind behind a massive cryptocurrency fraud operation that involved forced labor camps in Cambodia. The fraud, known as “pig butchering,” swindled victims worldwide, and Zhi, also known as “Vincent,” remains at large.
What Happened: The Alleged Scheme and Seizure of Assets
On Tuesday, federal prosecutors in Brooklyn announced the seizure of $15 billion worth of Bitcoin linked to Chen Zhi, the founder and chairman of the Prince Holding Group in Cambodia. Zhi, 37, faces charges including wire fraud conspiracy and money laundering conspiracy for allegedly running one of the largest and most lucrative cryptocurrency scams in history.
According to court filings, Zhi and his associates operated forced labor camps in Cambodia, where thousands of trafficked migrant workers were coerced into running “pig-butchering” scams on unsuspecting victims across the globe. These workers were allegedly confined to compounds surrounded by high walls and barbed wire, enduring physical abuse to maintain control.
Zhi and his co-conspirators allegedly used the profits from the scams to buy luxury assets such as yachts, jets, and even a Picasso painting from a New York-based auction house, further illustrating the scale of their illegal operation.
The “Pig Butchering” Scam: How It Worked
The “pig butchering” scam is a highly deceptive scheme in which fraudsters contact victims through text messages or social media platforms, initially pretending to have the wrong number. The scammers engage their targets in lengthy conversations, eventually steering the discussion toward investment opportunities. They often claim a personal emergency or create fake romantic relationships to build trust.
Once the scammers have gained the victim’s confidence, they convince them to invest in non-existent cryptocurrency funds, often leading them to fraudulent websites and apps. After the victim transfers their money, the scammers disappear, leaving the victims with nothing.
Forced Labor and Trafficking: Thousands Trapped in Cambodia
The operation behind the fraud allegedly involved the trafficking of thousands of migrant workers, who came to Cambodia seeking employment but were forced into inhumane conditions. These workers were housed in large dormitories, and many were subjected to physical violence as a means of control. Zhi allegedly oversaw 10 of these compounds, where beatings and threats were used to keep workers in line.
The operation also involved running massive “phone farms,” including one with 1,250 cell phones that managed 76,000 social media accounts. These phone farms were used to carry out the scam and communicate with victims.
Money Laundering and Global Impact
Chen Zhi’s Prince Group is also accused of using local networks, including one in Brooklyn, to launder approximately $18 million in stolen funds. The money was funneled through shell companies, enabling Zhi and his associates to hide the illicit profits from their global scam operation.
U.S. Attorney Joseph Nocella stated, “As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions. 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.”
What Happens Next: Efforts to Locate Chen Zhi
Chen Zhi remains at large, and authorities are continuing their efforts to locate and apprehend him. The scale of the operation, involving trafficking, fraud, and money laundering, has drawn attention from law enforcement worldwide. The U.S. government’s seizure of the Bitcoin and its commitment to dismantling the illicit network sends a clear message that such operations will be met with forceful legal action.
Closing Line
This story may be updated with more information as investigations continue and authorities work to locate Chen Zhi. The global impact of this scam underscores the ongoing challenge of combating large-scale fraud and human trafficking in the digital age.
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