Researchers from Wu Blockchain revealed new details about what appears to be the largest crypto asset seizure in U.S. history, as the Department of Justice (DOJ) confiscated approximately 127,000 BTC, worth more than $15 billion, from Chen Zhi, chairman of Prince Group.
According to investigative materials, Chen is accused of running a vast web of crypto-related scams and human exploitation schemes across Cambodia and Southeast Asia, earning tens of millions of dollars daily. All confiscated bitcoins are now under U.S. government custody.
Prince Group’s Criminal Network
Although Prince Group presented itself as a major real estate and finance conglomerate, investigators claim it evolved into one of Asia’s largest organized cybercrime networks.
Since 2015, Chen and his associates allegedly operated dozens of compounds in Cambodia, where victims were coerced into participating in crypto scams.
The investigation further uncovered that the network laundered funds through Huione Group, a fintech company under Chen’s control. The U.S. Treasury Department accused Huione of facilitating over $4 billion in illicit crypto transactions, including phishing, theft, and fraudulent investment operations.
As part of the crackdown, the U.S. imposed sanctions on 146 individuals and entities connected to Prince Group, cutting them off from the global financial system. Banks and payment processors were instructed to block transactions involving Huione and to prevent indirect access to dollar-based services.
Industry Response and AML Reinforcement
Following the sanctions, OKX tightened its anti-money-laundering (AML) monitoring, flagging and freezing accounts linked to Huione-related addresses.
Experts note this marks a significant escalation in U.S. enforcement efforts targeting crypto-linked money laundering networks across Southeast Asia.
Analysts also highlighted that one of Prince Group’s key laundering mechanisms involved crypto mining operations. The China–Iran-based mining platform Lubian reportedly played a central role, controlling about 6% of the global Bitcoin hash rate.
The Mystery Behind the 127,000 BTC
In December 2020, Lubian claimed it had suffered a theft of 127,000 BTC, though later investigations suggested the incident may have been staged to hide assets from law enforcement.
By mid-2024, dormant wallets connected to Lubian suddenly became active, moving coins to new addresses — the same addresses later cited in DOJ court filings.
It remains unclear how U.S. authorities gained access to Lubian’s private keys or seized control of the assets. Some experts speculate that social engineering and offline evidence collection may have played a role.
“This case exposes not only the human exploitation and financial crime behind crypto frauds but also the growing international cooperation in digital asset enforcement,” analysts from Wu Blockchain noted.
