tl;dr
The U.S. DOJ seized $15 billion in Bitcoin linked to Chen Zhi, a fugitive leading a global fraud operation involving human trafficking and 'pig butchering' schemes. The unprecedented move highlights the fight against transnational crypto crimes and the challenges of recovering stolen assets.
**DOJ Seizes Record $15 Billion in Bitcoin in Historic Crackdown on International Fraud Operation**
The U.S. Department of Justice (DOJ) has made history by seizing approximately $15 billion worth of Bitcoin from cryptocurrency wallets linked to Chen Zhi, a fugitive accused of leading one of the largest transnational fraud operations in history. The seizure, announced Tuesday, marks the largest forfeiture action in DOJ records and underscores a major blow to a criminal network that exploited victims globally through a deceptive scheme known as “pig butchering” fraud.
Chen Zhi, also known as “Vincent,” remains at large after federal prosecutors in New York unsealed an indictment against him in the U.S. District Court for the Eastern District of New York. According to court documents, Zhi founded and chaired the Prince Holding Group, a multinational conglomerate based in Cambodia that prosecutors allege evolved into one of Asia’s most extensive criminal enterprises.
**A Global Scam Built on Exploitation**
The Prince Group, which operates in over 30 countries, allegedly ran “forced-labor scam compounds” in Cambodia, where individuals were trafficked and coerced into participating in cryptocurrency fraud. Victims, often lured through social media and messaging apps, were tricked into transferring digital assets under false promises of high returns. In reality, the funds were stolen and laundered to benefit the perpetrators, with scammers building trust over time before siphoning victims’ money.
U.S. Attorney Joseph Nocella described the operation as “one of the largest investment fraud operations in history,” noting that it caused “billions of dollars in losses and untold misery” worldwide. He emphasized the human toll, including victims who were trafficked and forced to work under threats of violence.
**Political Influence and Bribes to Shield the Crime**
Prosecutors allege that Zhi and his network of executives used political influence and bribery to shield their activities from law enforcement. They reportedly paid off public officials in multiple countries to avoid investigations, allowing the scheme to flourish. The indictment highlights the sophisticated nature of the operation, which combined cybercrime, human trafficking, and cross-border financial laundering.
**A Legacy of Fraud and Recovery**
The seizure of Bitcoin represents a significant victory for U.S. authorities, who have been intensifying efforts to combat cryptocurrency-related crimes. The funds, held in wallets linked to Zhi, will likely be distributed to victims or used to offset the costs of the investigation. However, Zhi’s fugitive status means the case remains ongoing, with the DOJ urging international cooperation to locate him.
As the DOJ continues its crackdown on transnational crime, the case serves as a stark reminder of the evolving threats posed by cyber-enabled fraud and the need for global collaboration to dismantle such networks. For victims, the seizure offers a rare glimmer of justice in a scheme that exploited trust and desperation on an unprecedented scale.