US Seizes $14 Billion in Bitcoin, Charges Cambodian Tycoon Chen Zhi in Global Crypto Scam
In one of the largest financial crackdowns in history, the U.S. government has seized more than $14 billion in Bitcoin and charged Chen Zhi, a dual UK-Cambodian national and founder of the Prince Group, for allegedly masterminding a sprawling international cryptocurrency scam linked to forced labor and human trafficking.
The massive bust, announced Tuesday by the U.S. Department of Justice (DOJ) in New York, represents the largest-ever Bitcoin seizure and one of the most significant fraud cases ever pursued by U.S. authorities. According to officials, approximately 127,271 bitcoins connected to the fraudulent network are now under government control.
Chen Zhi, who remains at large, is accused of orchestrating a multi-billion-dollar cyber-fraud empire operating across Southeast Asia under the guise of a legitimate business conglomerate. His company, the Prince Group, which claims to be a leader in real estate, financial services, and consumer products, is alleged to have served as the front for one of Asia’s biggest transnational criminal enterprises.
A Global Investigation Into a Digital Empire of Fraud
The U.S. and the U.K. jointly led the operation that exposed Chen’s empire. Alongside the DOJ’s criminal charges, the U.S. Treasury and the U.K. government imposed sweeping sanctions on Chen, his associates, and their network of companies. The U.K. said it has frozen 19 properties linked to the network — including one London mansion valued at nearly £100 million ($133 million) — as part of coordinated efforts to dismantle his financial operations.
According to prosecutors, Chen and his organization lured thousands of unsuspecting victims into transferring cryptocurrency through sophisticated online investment scams. Victims were deceived into believing their funds would be used for legitimate investments that promised lucrative returns. Instead, the money was allegedly funneled into Chen’s network of scam compounds across Cambodia.
Forced Labor Compounds and Human Trafficking
Court documents reveal that Chen’s operation built and maintained at least ten scam facilities in Cambodia, each designed to maximize victim outreach and defraud investors worldwide. These compounds reportedly housed thousands of trafficked workers, many of whom were coerced into conducting the scams under threat or confinement.
The DOJ alleges that these facilities functioned like digital sweatshops, where trafficked laborers were forced to run fake investment campaigns, romance scams, and social media fraud schemes targeting global victims.
According to investigators, Chen’s accomplices procured millions of stolen mobile phone numbers and operated extensive “phone farms” to carry out the scams. Two facilities alone allegedly contained over 1,250 smartphones connected to 76,000 fake social media accounts, which were used to contact potential victims and build trust.
Documents seized by U.S. prosecutors reportedly included training manuals that taught workers how to appear credible online. These guides contained detailed instructions on how to manipulate targets, including advice not to use profile pictures of women who looked “too beautiful,” as overly glamorous photos could arouse suspicion among potential victims.
“A Criminal Enterprise Built on Human Suffering”
Assistant Attorney General John A. Eisenberg, who leads the DOJ’s National Security Division, condemned the Prince Group’s activities as “a criminal enterprise built on human suffering.” He described how Chen’s operation allegedly combined financial fraud, human trafficking, and organized crime into a single global network that preyed on both victims and exploited workers.
“The Prince Group masqueraded as a multinational business while running one of the largest cyber-fraud and human trafficking networks in the world,” Eisenberg said. “Its foundation was built on deception, greed, and the suffering of thousands.”
Workers inside the compounds were reportedly confined in prison-like conditions, with limited access to communication or freedom of movement. Many were recruited under false pretenses and then forced to participate in the scams to repay fabricated “debts” — a system that U.S. officials have compared to modern-day slavery.
Luxury Lifestyle Funded by Fraud
While thousands of victims and workers suffered, prosecutors say Chen and his associates lived lives of extreme luxury. The DOJ’s indictment lists private jets, rare artwork, high-end watches, and multimillion-dollar properties among the assets purchased with illicit funds.
Investigators allege Chen used criminal proceeds to buy a Picasso painting from a New York auction house and spent millions more on luxury travel and entertainment. His financial empire extended across multiple continents, supported by a vast web of shell companies, cryptocurrency wallets, and offshore accounts designed to hide the flow of money.
U.S. and U.K. Tighten Sanctions and Asset Seizures
As part of the joint action, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and the U.K.’s National Crime Agency (NCA) imposed sanctions freezing Chen’s assets and blocking transactions linked to his network. Authorities are now working to trace additional holdings and properties connected to the Prince Group’s global operations.
British officials called the action a major step toward disrupting cross-border cryptocurrency fraud and human exploitation networks. “This case shows how law enforcement can work together across borders to protect victims and hold perpetrators accountable, no matter where they operate,” the U.K. Treasury said in a statement.
A Wake-Up Call for Global Cryptocurrency Regulation
The case against Chen Zhi highlights growing concerns about cryptocurrency’s role in global financial crimes, particularly in Southeast Asia, where loosely regulated investment schemes and digital exchanges have created fertile ground for scams. Experts say the massive Bitcoin seizure underscores both the scale of the problem and the increasing effectiveness of international cooperation in combating cybercrime.
“This is not just about cryptocurrency,” said a senior DOJ official familiar with the investigation. “It’s about protecting people from exploitation and sending a message that digital assets cannot be used to hide human rights abuses or criminal empires.”
As the manhunt for Chen continues, U.S. authorities have pledged to continue dismantling the network he allegedly built and to return seized assets to defrauded victims where possible.
“This case serves as a warning,” said Eisenberg. “No matter how sophisticated the technology or how far the money travels, justice will catch up with those who exploit it for greed.”