The U.S. government has taken decisive action against Cambodian businessman Chen Zhi, accusing him of leading a sprawling transnational criminal network tied to cryptocurrency investment fraud. An indictment filed on October 8 by the U.S. District Court for the Eastern District of New York alleges that Chen Zhi—also known as Vincent—used the Cambodian Prince Group to run fraudulent investment schemes across more than 30 countries.
A Global Crypto Fraud Operation
According to the Department of Justice (DOJ), Chen’s network operated at least ten fraud compounds in Cambodia, targeting victims worldwide with “pig butchering” scams—a type of long-term fraud that lures investors into fake crypto opportunities before draining their funds. Authorities estimate the network caused billions of dollars in global losses.
The DOJ is now seeking to seize 127,271 Bitcoins, valued at roughly $12 billion, along with luxury assets including private jets and yachts. Chen faces charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.
Blockchain analysts have noted that the massive Bitcoin cache linked to the case has been inactive since 2020. Crypto researcher @tier10k reported that the funds originated from Chen Zhi’s LuBian mining operation, suggesting the assets may have been stolen years ago. While the DOJ has confirmed possession of the Bitcoins, it declined to disclose their exact source, fueling speculation across the crypto community.
U.S. Treasury Expands Sanctions
In a parallel move, the U.S. Treasury Department announced sanctions against Chen Zhi, the Prince Group, and affiliated entities in Palau. The department accused the network of benefiting from cyber fraud, money laundering, human trafficking, and forced labor. Sanctions target several companies linked to Chen, as well as individuals like Rose Wang, who allegedly facilitated “predatory investments” in Palau.
Authorities claim Chen’s company, Grand Legend, leased Ngerbelas Island in Palau to develop a luxury resort that allegedly serves as a front for money laundering. The sanctions freeze all U.S.-based assets of Chen Zhi and his associates and bar American citizens and businesses from engaging with the group, effectively cutting them off from the U.S. financial system.
FinCEN Highlights Money Laundering Risks
The Financial Crimes Enforcement Network (FinCEN) also issued a report linking the Huione Group—another Chen-associated entity—to over $4 billion in laundered funds between August 2021 and January 2025. This includes $37 million tied to North Korean cyberattacks, $36 million from crypto investment scams, and $300 million connected to other online fraud schemes.
In response to the case, OKX CEO Star issued a statement confirming that the exchange has strengthened its anti-money laundering (AML) protocols targeting activities linked to the Huione Group. All crypto deposits and withdrawals associated with the organization will now undergo rigorous compliance checks. Depending on the findings, OKX may freeze funds or terminate accounts involved in suspicious transactions.
Blockchain Investigators Raise Concerns
Crypto investigator ZachXBT highlighted that the wallet addresses connected to the 127,000 Bitcoins were previously identified in a report by Milky Sad, which flagged vulnerabilities in their private keys. This has sparked questions about how the wallets were accessed—whether the assets were seized directly or through intermediaries.
The Chen Zhi case has emerged as one of the largest crypto-related criminal prosecutions in U.S. history, involving billions in digital assets across multiple countries. It underscores both the global scale of crypto crime networks and the lengths regulators are willing to go to dismantle them.
