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The United States government has seized 127,195 Bitcoin linked to fraudulent activities associated with Chen Zhi, the chairman of Cambodia’s Prince Group. Authorities valued the seized cryptocurrency at more than $15 billion at the time of the operation. Officials described the seizure as one of the largest in US history.
Investigators stated that the seized Bitcoin originated from a wide range of cyber scams, including forced labor operations and “pig butchering” schemes. These scams involved victims being lured into fraudulent investments that funneled funds into crypto wallets controlled by the network. The Justice Department confirmed that the assets would remain under government control as legal proceedings continue.
The seizure added to the existing digital assets already in US custody. With this move, the government now holds more than 316,000 Bitcoin from past enforcement actions. The Department of Justice noted that this recovery is indicative of the increased importance of cryptocurrency in international fraud matters.
Federal prosecutors accused Chen Zhi of sending forced labor compounds to Cambodia to facilitate massive online fraud charges. As authorities indicated, victims would be trafficked to such establishments and subjected to running counterfeit call centers. These activities were reportedly aimed at people worldwide, and they were persuaded to invest in fake platforms.
The indictment also named Prince Group companies and associates involved in the network. U.S. officials accused the group of using sophisticated laundering methods to hide the flow of illicit funds. Authorities added that the scam operations generated billions of dollars in profits, much of which moved through cryptocurrency exchanges.
The Department of Justice explained that the charges are a significant milestone in the process of bringing to book those who launched international cybercrime enterprises. Should Chen Zhi and his associates be found guilty, their punishments will include seizure of assets and extended jail sentences.
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Alongside the criminal charges, the US Treasury Department and the United Kingdom announced sanctions on individuals and companies tied to the Prince Group. Officials labeled the network as one of the largest organized cybercrime operations in Southeast Asia. The sanctions aim to restrict access to the international financial system and limit the use of assets abroad.
There has been pressure on the Cambodian government to address scam compounds within its borders. According to reports by human rights groups, most of the victims were foreign nationals who would be offered legitimate jobs before being subjected to fraudulent work. International agencies have recommended working more closely to eliminate these criminal operations.
US officials stated that the Bitcoin seizure underscores the government’s focus on disrupting illicit use of digital assets. The Department of Justice, the Treasury, and law enforcement partners have pledged to continue targeting transnational networks that use cryptocurrency to commit fraud.
