Federal prosecutors have charged Chen Zhi, chairman of Cambodia's Prince Holding Group, with wire fraud and money laundering in a global cryptocurrency scam that exploited forced labor. The U.S. government seized bitcoin worth approximately $15 billion, marking the largest forfeiture action in Department of Justice history. Chen remains at large, facing up to 40 years in prison if convicted.
On Tuesday, an indictment was unsealed in federal court in Brooklyn, New York, charging 37-year-old Chen Zhi, also known as Vincent, with conspiracy to commit wire fraud and money laundering. Prosecutors allege that Chen oversaw a criminal network operating scam centers in Cambodia, Myanmar, and other Southeast Asian countries, where trafficked workers—many lured by fake job ads—were forced under threat of torture to conduct 'pig-butchering' frauds. These scams involved building trust with victims online, often through fake romantic relationships, before convincing them to invest in phony cryptocurrency platforms, stealing billions worldwide.
The U.S. Justice Department described the operation as a 'sprawling cyberfraud empire' that laundered funds through Prince Group's businesses, including gambling and cryptocurrency mining, to finance luxury purchases like yachts, private jets, vacation homes, and a Picasso painting. At one point, Chen allegedly boasted the scam generated $30 million daily. The network built at least 10 compounds in Cambodia, functioning as forced-labor camps with high walls, barbed wire, and dormitories; one was linked to Prince's Jinbei Casino Hotel, another called Golden Fortune. Workers, including hundreds trafficked from abroad, managed tens of thousands of fake social media profiles.
In coordination with the U.K., the U.S. Treasury sanctioned 146 entities tied to Prince Group, designating it a transnational criminal organization, while the U.K. froze 19 London properties worth over 100 million pounds. 'By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets and bring to justice those who exploit the vulnerable for profit,' said Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche.
The U.S. seized 127,271 bitcoins, currently valued at around $15 billion, which could compensate victims if approved by courts. Last year, Americans lost over $10 billion to such Southeast Asian scams, a 66% increase. Experts like Jacob Daniel Sims of Harvard's Asia Center noted the actions 'shrink its oxygen supply' for Cambodia's elite-backed scam economy, though criminal groups have adapted to past crackdowns. The United Nations estimates 100,000 people forced into online scams in Cambodia alone, with 120,000 in Myanmar and tens of thousands elsewhere in the region. Chen, a former adviser to Cambodian Prime Minister Hun Manet, allegedly used bribes and political influence to evade detection. Prince Group, a major Cambodian conglomerate in real estate, banking, and finance, has denied involvement but did not respond to recent requests for comment.