In a landmark international operation, US and UK authorities have seized Bitcoin valued at over $14 billion and charged Cambodian tycoon Chen Zhi with masterminding a massive cryptocurrency scam network that exploited forced labor to defraud victims worldwide. This crackdown represents one of the largest financial takedowns in history, targeting a transnational criminal organization operating across Southeast Asia.
US prosecutors unsealed an indictment on Tuesday, accusing Chen Zhi of wire fraud conspiracy and money laundering. The Department of Justice described the seizure as the largest ever of Bitcoin, involving approximately 127,271 units, and highlighted the Prince Group, Chen’s multinational company, as a front for one of Asia’s most extensive criminal enterprises. Simultaneously, the UK government imposed sanctions, freezing 19 properties in London worth more than £100 million linked to the network, including a £100 million office building and a £12 million mansion.
The alleged scam operation, which authorities say generated up to $30 million daily, involved ‘pig-butchering’ schemes where trafficked workers were forced to lure victims into fake romantic relationships online before persuading them to invest in fraudulent cryptocurrency platforms. These workers, many from China, were held in prison-like compounds across Cambodia, Myanmar, and other countries, operating under threat of torture. Court documents revealed that the network used ‘phone farms’ with thousands of mobile devices to control social media accounts for scams, with tips on building rapport to appear genuine.
Chen and his accomplices are accused of using the illicit proceeds to fund extravagant lifestyles, including purchases of private jets, yachts, vacation homes, and a Picasso painting from a New York auction house. The Prince Group allegedly laundered money through its own gambling and cryptocurrency mining operations, while maintaining a facade of legitimate businesses in real estate, finance, and consumer services. US Assistant Attorney General John Eisenberg condemned the group as a ‘criminal enterprise built on human suffering,’ emphasizing its reliance on human trafficking.
International cooperation was pivotal, with the US Treasury Department sanctioning 146 individuals within the Prince Group network and labeling it a transnational criminal organization. UK Foreign Secretary Yvette Cooper stated that the action aims to combat the growing threat of cyber-enabled fraud, protect vulnerable people, and prevent dirty money from entering financial systems. The sanctions also target four linked entities, including Jin Bei Group and Golden Fortune Resorts, which were previously implicated in Amnesty International reports on forced labor.
The crackdown underscores the severe human rights abuses and financial crimes prevalent in Southeast Asia, where UN estimates indicate hundreds of thousands of people are forced to work in scam centers. Experts note that the indictments and sanctions could disrupt the network’s operations by increasing scrutiny on Cambodian elite money, though Chen remains at large. The case has drawn attention to the need for global vigilance against such schemes, which often prey on emotional vulnerabilities and exploit economic disparities.
If convicted, Chen faces up to 40 years in prison, and authorities continue to investigate potential additional charges. The joint US-UK effort signals a strengthened commitment to addressing transnational crime, with implications for future regulations on cryptocurrency and international law enforcement collaborations. As the investigation unfolds, focus will remain on recovering assets and supporting victims, while efforts to dismantle similar networks are expected to intensify.