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The United States has announced the largest-ever cryptocurrency seizure tied to international online scams, in a sweeping crackdown that exposes a vast global fraud and human trafficking network.
Federal prosecutors and financial regulators revealed coordinated actions between the Department of Justice (DOJ), the U.S. Treasury, and authorities in the United Kingdom, targeting a Cambodia-based conglomerate known as Prince Holding Group and its chairman, Chen Zhi, also known as Vincent.
Court filings unsealed in the Eastern District of New York reveal that U.S. authorities are seeking the forfeiture of 127,000 Bitcoin held in wallets tied to Chen and his associates.
The DOJ described the network as one of the most sophisticated transnational scam operations in Asia, with billions laundered through shell companies, mining operations, and crypto exchanges worldwide.
Background: How a Cambodian Conglomerate Became a Global Crypto Fraud Empire
Chen, 38, a Chinese-born businessman who renounced his citizenship years ago, founded Prince Holding Group in 2015.
Officially, the firm operated in real estate, finance, and hospitality across more than 30 countries, but prosecutors say it evolved into a criminal enterprise built on deception and coercion.
According to court documents, Prince Holding Group lured thousands of workers to Cambodia with false job offers, only to trap them in heavily guarded compounds.
Inside, victims were forced to operate “pig butchering” scams, a form of long-term online fraud in which targets are groomed over time before being tricked into investing in fake crypto trading platforms.
Once victims deposited funds, the sites vanished. U.S. prosecutors say the funds from these schemes were laundered through an intricate web of more than 100 shell and holding companies worldwide.
From there, proceeds were routed through crypto exchanges and mining operations, eventually converted into Bitcoin, and stored in private wallets controlled by Chen and his associates.
Between May 2021 and August 2022, investigators traced at least $18 million from over 250 U.S. victims through shell entities operating in Brooklyn and Queens.
The DOJ said those funds were just a fraction of the broader global operation, which channeled billions in stolen assets back to Cambodia.
The Treasury’s Office of Foreign Assets Control (OFAC) simultaneously announced sanctions against 146 people and entities tied to Prince Group, labeling the network a transnational criminal organization engaged in fraud, extortion, and human trafficking.
The Financial Crimes Enforcement Network (FinCEN) also targeted the Cambodia-based Huione Group, accusing it of laundering at least $4 billion in illicit proceeds, including funds from North Korea-linked cyber heists.
Treasury Secretary Scott Bessent stated that the measures represent a decisive step in addressing a surge in online investment scams that have resulted in over $16 billion in total losses for Americans.
He described the coordinated actions as “a global response to a global crime,” emphasizing the role of cross-border intelligence sharing and joint enforcement with the U.K., which also imposed sanctions on Chen and several Prince Holding Group affiliates.
Prince Holding Group’s operations reportedly extended across multiple compounds in Cambodia, including those operating under names such as Jin Bei Casino and Golden Fortune Resorts.
U.S. officials said these sites were connected to forced labor, extortion, and even murder, with trafficked workers made to run high-volume scams under constant surveillance and abuse.
The investigation also sheds light on a growing intersection between human exploitation and cryptocurrency-based fraud in Southeast Asia.
Human rights organizations have long warned about forced labor compounds across the region, where victims are trapped in scam operations targeting global investors.
The Billion-Dollar Pig-Butchering War Goes Global: What Happened?
The latest crackdown builds on a series of global enforcement efforts to combat “pig butchering” scams, named after the method of “fattening up” victims through trust before defrauding them.
In August, stablecoin issuer Tether froze nearly $50 million in USDT connected to a Southeast Asia-based ring, working with Chainalysis, Binance, OKX, and local law enforcement.
That operation followed a 2023 case in which $225 million in USDT was seized in coordination with the U.S. Secret Service, then the largest crypto recovery in the agency’s history.
Crypto companies have increasingly joined in these efforts. Binance recently joined T3+, a global anti-crime alliance launched by TRON, Tether, and TRM Labs, which has frozen more than $250 million in illicit assets.
Its first joint success recovered $6 million linked to another pig-butchering scam. Coinbase has also assisted in tracing stolen funds tied to international trafficking networks.
According to U.S. data, losses from pig-butchering scams surged to $3.6 billion in 2024, a 40% increase from the previous year.
Authorities say the networks are growing more sophisticated, blending crypto fraud, organized crime, and human trafficking at an unprecedented scale.
