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U.S. Government Seizes $15 Billion in Bitcoin from Cambodia-Based ‘Pig Butchering’ Scam Operation
Federal agents, in collaboration with U.K. authorities and financial intelligence units, launched charges against Chen Zhi, founder and chairman of the Prince Holding Group, accusing him and co-conspirators of operating scam compounds in Cambodia and orchestrating large-scale crypto fraud. The U.S. indictment describes how trafficked workers were confined, tortured, and forced to run investment scams targeting victims across the globe.
The forfeiture complaint alleges that 127,271 Bitcoin, valued at around $15 billion, were held in unhosted wallets controlled directly by Chen Zhi. The DOJ now seeks judicial forfeiture of those assets.
Scam Mechanics: How the “Pig Butchering” Worked
For readers unfamiliar with it, a pig butchering scam involves luring victims with romantic or investment overtures, fattening their trust over weeks or months, and then persuading them to invest large sums into fraudulent crypto schemes before vanishing. In Chen’s case, the operation allegedly ran from compounds in Cambodia, staffed by trafficked individuals forced to run fake trading platforms and communication setups. Luxury assets yachts, private jets, and even a Picasso painting were bought with laundered funds.
Analysts note that part of the seized BTC may trace to an alleged 2020 hack of LuBian, a crypto mining enterprise with operations in China and Iran, which Elliptic claims was intimately linked with Chen’s network.
Why This Seizure Is Monumental for Crypto Crime Enforcement
- Largest Bitcoin forfeiture in DOJ history: The scale of seizure eclipses prior cases.
- Transnational enforcement synergy: Coordinated US-UK sanctions, asset freezes, and international indictments highlight growing global resolve.
- Human rights implications: The involvement of forced labor, torture, and human trafficking elevates this from mere financial crime to gross exploitation.
- Precedent for crypto regulation: This action bolsters arguments for stricter AML/KYC oversight, wallet traceability, and cross-border enforcement in blockchain.
That said, observers caution that many criminal networks adapt fast. Seizing the crypto war chest is meaningful but dismantling the networks behind them will be the long, complex battle ahead.
FAQs
Q: Did the U.S. really seize $15 billion in Bitcoin?
Yes prosecutors filed a forfeiture complaint against 127,271 BTC, currently in U.S. custody, tied to the alleged scam.
Q: Who is Chen Zhi and what is his role?
Chen Zhi is the accused mastermind and chairman of Prince Holding Group, charged with orchestrating crypto fraud and forced-labor scam operations from Cambodia.
Q: What is a “pig butchering” crypto scam?
It’s a fraud scheme where victims are cultivated through romance or trust, then defrauded of funds in so-called investment crypto opportunities.
Q: How were forced labor camps involved?
Trafficked workers were allegedly held in compounds, coerced to work in phone farms and scam operations under abuse and threats.
Q: What happens next legally?
The DOJ seeks full forfeiture of seized BTC, and Chen faces charges of wire fraud, money laundering, and conspiracy. UK and U.S. sanctions have also been applied.