The U.S. Department of Justice has announced its largest cryptocurrency confiscation in history, seizing over 127,000 BTC (worth about $15 billion) from Cambodian businessman Chen Zhi, who allegedly led a vast crypto fraud and money-laundering empire powered by forced labor.
According to a recently unsealed indictment from the Eastern District of New York, Zhi, the founder and chairman of the Prince Group, is accused of orchestrating a global “pig-butchering” scam — a long-term scheme where victims are emotionally manipulated into fake investment platforms before their funds are drained.
A Billion-Dollar Fraud Network Built on Forced Labor
The DOJ alleges that Zhi’s multinational conglomerate, initially presented as a real estate and financial services firm, secretly ran forced-labor scam compounds across Cambodia. Workers were trafficked and coerced into running online crypto scams that targeted investors worldwide.
“This is one of the most complex and vertically integrated criminal networks we’ve ever uncovered,” said FBI Director Kash Patel. “It combined human trafficking, cyber fraud, and large-scale crypto laundering on a global scale.”
Investigators estimate that millions of victims were affected. Funds stolen through the fraudulent investment apps were allegedly funneled through multiple exchanges and shell companies to conceal their origin.
The Biggest Crypto Seizure in U.S. History
Authorities have seized 127,271 BTC linked to the operation — one of the largest single recoveries of illicit cryptocurrency to date. The DOJ classified these assets as proceeds of wire fraud and money laundering.
The investigation revealed that Prince Group managed operations in more than 30 countries, generating “enormous profits” for top executives who reportedly lived in luxury while overseeing the scam.
What’s Next
Chen Zhi faces charges of wire fraud conspiracy and money laundering conspiracy. If convicted, he could face up to 40 years in prison. The DOJ confirmed that it is coordinating with international partners to recover additional digital assets and identify further victims.
The unprecedented takedown demonstrates that even the largest, most sophisticated crypto crime networks can be traced and dismantled.
“Justice will be done,” added Patel. “Crypto crime is global — but so is law enforcement.”
