US Seizes Record $15 Billion in Bitcoin: Charges 'Prince Group' Chairman Over Forced Labor Scam

US Seizes Record $15 Billion in Bitcoin: Charges ‘Prince Group’ Chairman Over Forced Labor Scam

US Seizes Record $15 Billion in Bitcoin: Charges ‘Prince Group’ Chairman Over Forced Labor Scam

WASHINGTON D.C.—In a massive global crackdown on cyber-enabled financial crime, the U.S. Department of Justice (DOJ) announced on October 14 the seizure of approximately 127,271 Bitcoin, valued at around $15 billion at the time of the action. Officials have described the action as the largest cryptocurrency forfeiture in DOJ history.

The historic seizure is linked to an indictment unsealed in federal court in Brooklyn, New York, charging Chen Zhi (also known as “Vincent”), the founder and chairman of the Cambodian conglomerate Prince Holding Group (Prince Group), with wire fraud conspiracy and money laundering conspiracy.

The DOJ and the U.S. Treasury Department allege that Chen Zhi was the mastermind behind a sprawling transnational criminal organization (TCO) that operated forced-labor scam compounds across Cambodia. These compounds housed victims of human trafficking who were forced to carry out sophisticated online investment fraud schemes known globally as “Pig Butchering” scams.

US Seizes Record $15 Billion in Bitcoin: Charges 'Prince Group' Chairman Over Forced Labor Scam

Details of the Criminal Enterprise

Court documents detail the scale of the operation:

Forced Labor: Hundreds of individuals, often lured by false promises of well-paying jobs, were trafficked and held against their will in prison-like compounds surrounded by high walls and barbed wire. They were reportedly subjected to violence and torture to ensure compliance and maximize their fraudulent output.
The Scale: The criminal network used a massive “phone farm,” operating in two facilities with 1,250 mobile phones to manage 76,000 social media accounts for targeting victims worldwide.
Luxury Laundering: Proceeds from the fraud were allegedly laundered through a complex web of shell companies and used to purchase lavish assets, including Picasso paintings, private jets, yachts, luxury real estate (including a London mansion), and high-end watches.

What is a ‘Pig Butchering’ Scam?

The term “Pig Butchering” is a literal translation of the Chinese term Shā Zhū Pán (杀猪盘). It refers to the agricultural practice of fattening a pig before slaughter, symbolizing how scammers systematically “fatten” a victim with false affection and fabricated investment gains before “slaughtering” them by stealing all their money.

It is a sophisticated type of crypto investment fraud that often incorporates elements of romance or “catfishing” scams.

How the Cheating is Conducted: A 4-Stage Script

The scam relies heavily on social engineering and meticulous, long-term manipulation.

1. Building Trust (Fattening the Pig)

Initial Contact: The scammer initiates contact, often via a seemingly random “wrong number” text message, a dating app, or social media.
Creating a Persona: The fraudster establishes a fake, yet highly successful online persona—often posing as an attractive, wealthy, and finance-savvy professional.
Relationship Development: The scammer dedicates weeks or even months to building a personal, intimate, or even romantic relationship with the victim, gaining their deep trust and emotional investment before any mention of money.

2. Introducing the Trap (The Pig Feed)

The “Secret”: Once the victim is sufficiently emotionally invested, the scammer casually introduces a highly profitable, “exclusive” investment opportunity, usually involving cryptocurrency or foreign exchange trading. They claim to have an “expert” connection or “insider knowledge.”
Fake Platform: The victim is persuaded to deposit money (in crypto) into a fraudulent trading platform or App controlled entirely by the scammers. This platform is expertly designed to look legitimate.
Small Wins: The scammers allow the victim to make a small initial investment and show them highly manipulated, fabricated returns. They may even allow a small withdrawal to cement the illusion of legitimacy.

3. Maximum Investment (The Final Feed)

Greed and FOMO: Encouraged by the initial success, the victim is pressured to deposit larger and larger sums—often tapping into their life savings, retirement funds, or taking out loans—to seize the “opportunity” before it’s gone.
Hidden Fees: When the victim attempts to make a large withdrawal of their “profits,” the scammers introduce massive, unexpected obstacles, such as needing to pay huge “taxes,” “insurance,” or “regulatory fees” to unlock the funds. This is a final attempt to extract cash.

4. The Exit (The Slaughter)

The Collapse: Once the victim has invested everything they have, or refuses to pay the arbitrary fees, the platform is suddenly shut down.
Disappearance: The scammer vanishes instantly, blocking the victim on all communication channels. The victim is left with nothing, and the stolen cryptocurrency has already been laundered through a complex process to fund the TCO’s illicit operations and luxury spending.

This coordinated U.S.-U.K. action marks a significant international effort to combat the growing scourge of “Pig Butchering” operations, which are increasingly intertwined with human trafficking and organized crime across Southeast Asia.