The US government has seized $15 billion in bitcoin from a Cambodian business conglomerate accused of running a global cryptocurrency scam.
Federal prosecutors say Chen Zhi, founder and chairman of Prince Holding Group, oversaw a vast criminal network in Cambodia built on forced labor that extorted billions of dollars from victims in the United States and around the world.
The indictment, which was unsealed in a Brooklyn federal court on Tuesday charged the 37-year-old Cambodian national with wire fraud and money laundering.
“By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at our disposal to defend victims, recover stolen assets, and bring to justice those who exploit vulnerable people for profit,” said Attorney General Pamela Bondi and Assistant Attorney General Todd Blanche. said in a statement.
The complaint constitutes the largest forfeiture action in the history of the Justice Department, according to the agency.
Chen remains at large, according to the Justice Department. If convicted, he faces a maximum sentence of 40 years in prison.
“Today, the FBI and its partners carried out one of the largest financial enforcement operations in history,” FBI Director Kash Patel said in a statement. “This is an individual who allegedly operated a vast criminal network across multiple continents involving forced labor, money laundering, investment schemes and stolen assets, targeting millions of innocent victims in the process.”
Office of Foreign Assets Control of the U.S. Department of the Treasury announcement On Tuesday, he coordinated with British authorities to impose sweeping sanctions against 146 entities associated with the Prince Group, which has been officially designated a transnational criminal organization by the ministry.
Prince Holding Group’s website lists it as one of Cambodia’s largest conglomerates, with businesses focused on property development, banking, finance and consumer services.
The company did not immediately respond to CBS News’ request for comment. The company has previously denied involvement in fraudulent transactions and has not publicly responded to the latest allegations.
Federal prosecutors have described the cryptocurrency fraud allegedly used by Chen as a “pig butchery” scam, or when scammers dupe a victim into fake investments.
The Justice Department says the criminal network convinced victims through social media and messaging apps to transfer cryptocurrencies based on false promises that they would be invested. The scammers then stole the funds, laundered them and used the proceeds for luxury travel, entertainment and other extravagant purchases, according to the agency.
Allegations of human trafficking
Federal prosecutors said Prince Group targeted victims around the world with the help of local networks, including one operated out of Brooklyn, New York. To carry out these schemes, criminal actors allegedly trafficked hundreds of people and forced them to work in a network of compounds across Cambodia. The “forced and violent labor camps” consisted of large dormitories surrounded by high walls and barbed wire, according to the Justice Department.
To evade law enforcement, top executives at Chen and the Prince Group allegedly paid bribes to officials and used political influence, the department said.
Mark Taylor, who previously worked on human trafficking issues in Cambodia for the nonprofit Winrock International, said Chen was part of the Cambodian elite and “well protected” by the government, demonstrating “the larger role Cambodia has played as a safe hub for this online scam to thrive.” Chen was formerly a personal advisor to Cambodian Prime Minister Hun Manet.
“Cambodia is the physical location where a lot of these companies operate, but it’s also the money laundering hub of the entire region,” Taylor said.
Independent research group Cyber Scam Monitor has documented more than 200 scam centers and online casinos in Cambodia alone, based on first-hand accounts from former fraudsters, on-the-ground investigations and media reports.
