Crypto Corruption: U.S. Seizes $14Bn in Bitcoin, Charges Cambodian Exec in Global Crypto and Forced-Labor Scam
U.S. authorities have announced one of the largest cryptocurrency seizures in history, taking control of more than $14 billion in bitcoin and charging Chen Zhi, the 38-year-old chairman of Cambodia-based Prince Holding Group, in what officials describe as a massive global cyber-fraud and human-trafficking network.
A Sweeping Indictment and Coordinated Crackdown
In an indictment unsealed in Brooklyn federal court, prosecutors accused Chen, also known as “Vincent”, of wire-fraud conspiracy and money-laundering conspiracy linked to “pig-butchering” scams that defrauded victims worldwide. The U.S. Treasury Department simultaneously designated Prince Holding Group a transnational criminal organization, freezing its U.S.-linked assets and barring American entities from doing business with it.
The seizure of 127,271 bitcoin, valued at roughly $14.4 billion, marks the largest crypto confiscation ever by the Department of Justice. Authorities said the funds were tied to scam proceeds laundered through Prince’s vast portfolio of real estate, gambling, and cryptocurrency operations.
“Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” said Attorney General Pamela Bondi.
Forced Labor and the “Pig-Butchering” Model
According to prosecutors and Treasury officials, Prince Holding Group built at least 10 compounds in Cambodia that functioned as forced-labor facilities. Workers — many lured from other Asian countries by promises of tech or customer-service jobs — were reportedly held captive, beaten, and coerced into running online investment scams.
Victims were instructed to build trust with individuals via social media or dating apps, persuading them to invest in fraudulent crypto ventures. The schemes, known as “pig-butchering,” have proliferated across Southeast Asia, costing Americans an estimated $10 billion in 2024 alone, according to the Treasury Department.
Photographs included in the indictment showed beaten and bound workers, and prosecutors said Chen personally approved at least one violent assault, cautioning only that the target not be “beaten to death.”
The indictment alleges that proceeds from the scams funded luxury purchases including yachts, private jets, vacation homes, and fine art, as well as a Picasso painting.
Broader Sanctions and Financial Fallout
Alongside the indictment, the Treasury also moved to sever another Cambodian conglomerate, Huione Group, from the U.S. financial system, citing its alleged role in laundering crypto scam proceeds. Officials described the measure as the most severe financial sanction short of a full trade ban.
“The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes,” said Treasury Secretary Scott Bessent.
Experts say the coordinated actions mark a turning point in U.S. efforts to combat human-trafficking-linked cybercrime across Southeast Asia. “Prince Holding Group is an essential part of the scaffolding that makes global cyber-scamming possible,” said Jacob Daniel Sims, a transnational crime expert at Harvard’s Asia Center. “This changes the risk calculus for anyone doing business with Cambodia’s elite.”
Political Ties and Regional Implications
Chen, who remains at large, holds dual Chinese and Cambodian citizenship and is a prominent figure in Cambodia’s ruling circles. He has served as an adviser to Prime Minister Hun Manet and his father, former Prime Minister Hun Sen, and carries the honorary title “neak oknha,” roughly equivalent to a British lordship.
Chinese authorities have reportedly investigated Prince Holding Group for money laundering since 2020. Cambodian officials have not commented on the U.S. charges.
Historic Seizure and Next Steps
The Justice Department’s confiscation dwarfs prior digital-asset seizures, surpassing the 2022 Silk Road forfeiture. Analysts at blockchain intelligence firm Elliptic said the bitcoins may have originated from LuBian, a large mining operation once controlled by Chen that shut down after assets were reported missing in 2020.
While it remains unclear how the U.S. gained custody of the assets, the coins are expected to be transferred into a federal bitcoin reserve established under a 2024 presidential directive, potentially allowing restitution for victims if courts permit.
If convicted, Chen faces up to 40 years in prison. The case underscores the increasing intersection of cryptocurrency, human trafficking, and state-linked corruption, and the expanding reach of U.S. enforcement in global digital markets.
