U.S. Indicts Chen Zhi for Global Crypto Scam via Cambodia’s Prince Group

2 mins mins

In Brief

DOJ seizes $15B in Bitcoin tied to Chen Zhi’s global “pig butchering” crypto scam.
Prince Group accused of trafficking workers to run massive online crypto fraud schemes.
U.S. Treasury designates Prince Group a transnational criminal organisation under sanctions.

The U.S. Department of Justice unsealed an indictment against Chen Zhi, founder of Prince Group, for orchestrating a global crypto scam. The DOJ also filed a record-breaking civil forfeiture action for 127,271 Bitcoin worth approximately $15 billion.

According to court documents, Zhi directed one of the largest “pig butchering” scams in history, using forced labour compounds in Cambodia. Victims were targeted through fake crypto investment schemes that led to billions in stolen funds.

“These scams caused billions in losses and untold misery,” said U.S. Attorney Joseph Nocella in a press release from the DOJ. He added that trafficked victims were “forced to work against their will,” supporting the fraud through massive digital operations.

FBI Director Kash Patel called it “one of the largest financial fraud takedowns in history” and praised efforts to track and seize funds. The seized Bitcoin, held in unhosted wallets controlled by Zhi, marks the DOJ’s largest crypto forfeiture ever.

Prince Group Tied to Global Fraud, Bribery, and Human Trafficking

Prince Group allegedly used violence, trafficking, and crypto laundering techniques to operate its fraud empire across more than 30 countries. Zhi remains at large and faces up to 40 years in prison if convicted.

The indictment revealed Prince Group’s use of mobile “phone farms” managing 76,000 social media accounts to scam victims online. According to the DOJ, victims were manipulated through social platforms, with promises of high crypto returns that never existed.

“As alleged, the defendant built a criminal enterprise on human suffering,” said Assistant Attorney General John A. Eisenberg. He emphasised the U.S. commitment to stopping cyber-enabled human trafficking and financial crime.

The U.S. Treasury has now designated Prince Group as a transnational criminal organisation, adding Zhi and related entities to its sanctions list. According to the FBI’s 2024 report, crypto fraud losses exceeded $5.8 billion last year, highlighting the growing scale of such crimes.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.