US Authorities Seize $14B in BTC from Cambodian Pig Butchering Network

Global Fraud Empire Busted

The US Department of Justice is closing in on Chen Zhi, chairman of Prince Holding Group, whose legitimate businesses allegedly hid a brutal network of human trafficking and fraud. At the age of 37, the chairman of the conglomerate disguised a criminal syndicate within sprawling operations spanning real estate, finance, and consumer services across more than 30 countries.

Prosecutors allege that since 2015, Chen has leveraged his business empire to mask illicit activities, exploiting Southeast Asia’s economic vulnerabilities and lax oversight to fuel a global fraud machine.

Federal investigators describe the operation as relying on “pig butchering” tactics, a term that captures the methodical grooming of victims much like fattening livestock before slaughter. Trafficked workers, many lured from China with false job promises, are confined in fortified compounds across Cambodia.

Under threats of violence and torture, they manage thousands of fake social media profiles to build trust with targets, often through romantic overtures or investment pitches. Once hooked, victims poured money into sham crypto platforms, only to see their funds vanish into the syndicate’s wallets.

Prince Group’s compounds function like high-tech prisons, complete with barbed wire and armed guards. Workers operate phone farms with millions of numbers, controlling over 76,000 social media accounts to execute scams on an industrial scale. Internal documents revealed strategies for authenticity, including the use of relatable personas and consistent messaging to avoid suspicion. These efforts generated staggering sums, with estimates placing annual losses from similar regional scams at up to $12 billion.

This case dwarfs many peers in the fraud landscape. For instance, while individual romance scams might net hundreds of thousands, Prince Group’s network allegedly pulled in $30 million daily at its peak. Compared to operations in neighboring Myanmar, where militias have occasionally cracked down under international pressure, Cambodia’s environment has allowed more sustained activity.

Recent interventions in Myanmar freed about 7,000 people, mostly Chinese nationals, but new compounds quickly emerged, often powered by satellite internet services. In contrast, Prince Group’s integration with legitimate businesses provided a layer of protection, including alleged bribes to officials and ties to influential figures like Hun To, the nephew of Cambodia’s prime minister.

Cryptocurrency’s volatility and pseudonymity make it ideal for laundering. Unlike traditional banking fraud, where traceability is higher, blockchain’s decentralized nature complicates recovery, though tools like those used by the FBI’s Virtual Asset Unit have improved tracking.

DOJ Seizes Record $14 Billion in Bitcoin

Prosecutors in the Eastern District of New York unsealed charges against Chen for wire fraud and money laundering conspiracy, carrying a potential 40-year sentence. As part of the action, authorities seized 127,271 Bitcoin from wallets under his control, valued at roughly $14 billion based on current prices. This marks the largest cryptocurrency forfeiture in DOJ history, eclipsing previous hauls from dark web marketplaces or ransomware rings.

Coordinated internationally, the UK froze 19 properties linked to Chen’s network, worth over £100 million, including a luxury London mansion. The US Treasury sanctioned Prince Holding Group and 146 associated entities, barring them from American financial systems.

These measures aim to dismantle the syndicate’s infrastructure, from shell companies to lavish assets like yachts, private jets, and a Picasso painting acquired through a New York auction.

International Manhunt for Conglomerate Chief

Chen remains at large, prompting an international manhunt. His dual UK-Cambodian citizenship complicates extradition, but officials express confidence in ongoing collaborations.

An associate, Qiu Wei Ren, with multiple nationalities, also faces sanctions.

This seizure could bolster US government crypto holdings, potentially adding to strategic reserves established earlier this year. Current reserves stand at about 198,000 Bitcoin, worth over $22 billion, and incorporating this haul would push totals toward $36 billion.

While Bitcoin prices held steady around $112,000 amid the news, analysts watch for volatility if the government opts to liquidate portions.

The case echoes earlier actions, such as last year’s sanctions against Cambodian senator Ly Yong Phat’s empire for similar forced-labor scams. That operation highlighted political entanglements, much like Prince Group’s alleged government ties. In the wider context, it aligns with Interpol’s campaigns against Southeast Asian fraud hubs, where economic disparities fuel human trafficking.

Victims, primarily from the US and Europe, reported $3 billion in losses last year alone.

As enforcement ramps up, the finance sector faces calls for stronger safeguards. Exchanges like Binance have aided investigations by tracing funds, but gaps persist in monitoring unhosted wallets.

This bust serves as a stark reminder that while crypto democratizes finance, it also empowers sophisticated criminals.