DOJ Seizes $15 Billion in Bitcoin From “Pig Butchering” Scam

The United States Department of Justice (DOJ) has seized $15 billion worth of BTC held by an individual at the head of a massive “pig butchering” operation based in Cambodia. The seizure is the largest forfeiture action in the DOJ’s history

Federal prosecutors unsealed an indictment charging the alleged scammer, Chen Zhi, in a federal court in Brooklyn, New York

DOJ Seizes $15B Worth Of BTC

The United States Department of Justice (DOJ) has seized $15 billion worth of Bitcoin (BTC) held in crypto wallets owned by Chen Zhi, who oversaw a massive “pig butchering” scam based in Cambodia. The seizure is the largest forfeiture action sought by the DOJ. Federal authorities unsealed an indictment charging Zhi with wire fraud conspiracy and money laundering conspiracy in a federal court in Brooklyn, New York. According to the US Attorney’s Office for the Eastern District of New York, Zhi faces up to 40 years in prison if convicted. However, the individual remains at large

Federal prosecutors alleged that Zhi operated “industrial-scale” cryptocurrency scams that involved forced-labor compounds across Cambodia. Authorities also alleged that the workers were held against their will in these labor compounds and forced to participate in cryptocurrency investment fraud schemes

The Prince Holding Group

Zhi was identified as a 38-year-old Chinese emigre in court filings. It was also revealed to be the founder and chairman of the Prince Holding Group, a multinational business conglomerate based in Cambodia. According to prosecutors, the group secretly grew and transformed itself into one of Asia’s largest transnational criminal organizations. Prosecutors alleged the group operates ten scam compounds in Cambodia

The United States Treasury Department has also designated the Prince Group as a transnational criminal organization. It also announced sanctions against Zhi and over 100 individuals associated with the group and their complicity in the alleged scam. US Attorney Joseph Noella stated that Zhi directed one of the largest investment fraud operations

“Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will.”

According to authorities, the Prince Group operates businesses in over 30 countries

Forced Labor Scam Compounds

The US Attorney’s office also alleged that the group ran forced labor scam compounds across Cambodia, where individuals were held against their will and forced to participate in cryptocurrency fraud

“Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as ‘pig butchering’ scams, that stole billions of dollars from victims in the United States and around the world.”

Pig Butchering scams trick individuals contacted via social media to transfer funds and cryptocurrencies into accounts controlled by individuals associated with the scheme. Unsuspecting individuals were tricked with promises of large profits

“In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators. The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds.”

Prosecutors also revealed that hundreds were trafficked and forced to work at these compounds

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