In a landmark crackdown on global financial crime, U.S. authorities have seized over $14 billion in bitcoin and charged Chen Zhi, the founder of Cambodia’s Prince Holding Group, with orchestrating a sprawling cryptocurrency scam. The indictment, unsealed by Brooklyn federal prosecutors on Tuesday, accuses Chen and unnamed co-conspirators of exploiting forced labor to defraud investors and laundering illicit proceeds to fund a lavish lifestyle, including the purchase of yachts, private jets, and a Picasso painting. Chen, 38, faces charges of wire fraud conspiracy and money laundering conspiracy, with potential penalties of up to 40 years in prison if convicted. The U.S. Treasury Department has designated Prince Holding Group, a conglomerate involved in real estate and financial services, as a transnational criminal organization, while sanctions have been imposed by both U.S. and British authorities. Chen, who remains at large, is alleged to have sanctioned violence against workers, authorized bribes to foreign officials, and used his businesses, including online gambling and cryptocurrency mining, to launder profits. The scam, described as one of the largest investment fraud operations in history, reportedly generated $30 million daily at its peak. U.S. authorities plan to use the seized bitcoins, currently valued at approximately $113,000 each, to compensate victims. The case highlights the growing threat of Southeast Asia-based scams, which cost Americans $10 billion in 2023 alone. Chen, a close associate of Cambodia’s ruling elite, has been under investigation by Chinese authorities since 2020 for cyber fraud and money laundering. Experts warn that while the indictment and sanctions disrupt the criminal network, dismantling the scam economy will require sustained international efforts.
US charges Cambodian executive in massive crypto scam and seizes more than $14 billion in bitcoin
