US Indicts Mastermind of Cambodian Cyber-Scam Network and Seizes $15B in Bitcoin

Major Indictment Against Cyber Fraudster

The Department of Justice (DOJ) announced a significant indictment against Chen Zhi, known as Vincent, linked to a Cambodia-based cryptocurrency fraud scheme. The indictment, unsealed in the Eastern District of New York, alleges that Zhi operated forced-labor compounds conducting extensive crypto investment scams, resulting in substantial losses for numerous victims worldwide.

Seizure of Assets

The DOJ reported a remarkable civil forfeiture action concerning 127,271 Bitcoin, estimated to be worth about $15 billion, marking the largest forfeiture in the department's history.

Chen Zhi's Operations

• Zhi's organization, Prince Holding Group, is involved in real estate, financial, and consumer services across over 30 countries.
• Charged with wire fraud conspiracy and money laundering conspiracy, Zhi potentially faces up to 40 years in prison.

Attorney General Pam Bondi articulated that this indictment represents a significant move against human trafficking and cyber-enabled financial fraud efforts. By disrupting Zhi's operations, the DOJ emphasizes its commitment to justice for victims and recovery of stolen assets.

Impact on Victims

The indictment specifies how Zhi and his co-conspirators operated by trafficking laborers and coercing them into scams aimed at persuading individuals to transfer cryptocurrency under false pretenses, a tactic termed as pig butchering.

Law Enforcement Actions

• Authorities uncovered a money laundering network that facilitated over $18 million in transfers associated with over 250 victims in the United States.
• Sanctions were also announced against 146 targets within the Prince Holding Group by the Treasury Department.

Treasury Secretary Scott Bessent highlighted the profound financial impact of transnational fraud on American citizens, stating that the department is taking stringent measures to shield citizens from foreign scams.