In a landmark joint operation, US and UK authorities have confiscated approximately $14 billion in Bitcoin and indicted the head of a Cambodian conglomerate for masterminding a vast cryptocurrency fraud scheme that exploited forced labor. This crackdown, one of the largest in financial history, has also led to the freezing of significant assets in the UK, targeting a network accused of global scams.
The US Department of Justice announced on Tuesday that it had seized 127,271 Bitcoin, valued at over $14 billion, and charged Chen Zhi, a UK and Cambodian national, with wire-fraud conspiracy and money laundering. Chen, the founder of the Prince Group, is alleged to have run a transnational criminal organization from Cambodia, using his business empire as a front for illicit activities. He remains at large, and if convicted, faces up to 40 years in prison. The seizure marks the largest ever of Bitcoin by any government.
According to court documents, the Prince Group operated at least ten scam compounds in Cambodia, where workers were forced to conduct online frauds on an industrial scale. The group set up “phone farms” with thousands of mobile devices controlling around 76,000 social media accounts to target victims worldwide. Prosecutors say unwitting individuals were contacted through these accounts and persuaded to transfer cryptocurrency under false promises of investment returns. Instructions found in group documents advised using less attractive profile photos to appear more genuine and build rapport with targets.
The scam centers were described as prison-like compounds where trafficked workers, often lured by fake job offers, were confined and compelled to carry out scams under threat of torture. Assistant Attorney General John A Eisenberg labeled the Prince Group a “criminal enterprise built on human suffering,” highlighting the human rights abuses involved. Earlier this year, Amnesty International reported on similar centers run by affiliated companies, detailing conditions of forced labor and abuse.
In coordination with the US, the UK government sanctioned Chen and his network, freezing 19 properties in London, including a £100 million office building and a £12 million mansion. The Foreign Office stated that these assets were purchased with criminal proceeds, part of a money laundering scheme that involved luxury items such as private jets, watches, and a Picasso painting bought in New York. UK Foreign Secretary Yvette Cooper condemned the network for “ruining the lives of vulnerable people” and using London real estate to store illicit funds.
The joint operation underscores growing international efforts to combat transnational cybercrime and fraud. Cooper emphasized that the crackdown aims to protect human rights, safeguard British nationals, and prevent dirty money from entering the UK financial system. Similarly, US officials highlighted the scale of the operation as a deterrent to other criminal organizations exploiting cryptocurrency for illicit gains. Fraud Minister Lord Hanson reiterated the UK’s commitment to targeting fraudsters who prey on the vulnerable.
Looking ahead, authorities are pursuing Chen and his accomplices, with ongoing investigations into the full extent of the network’s operations. The case has drawn attention to the challenges of regulating cryptocurrency and combating online scams that cross borders. This takedown may lead to increased cooperation between nations in tracking and seizing digital assets linked to crime, setting a precedent for future actions against similar enterprises.