DOJ seizes $15B in crypto from Cambodian national for “pig butchering” scam

The United States Department of Justice has seized a total of 127,271 bitcoin, which is currently worth approximately $15 billion, from Chen Zhi.

Zhi, who is also known as “Vincent,” is the founder and Chairman of Prince Holding Group, a multinational business conglomerate based in Cambodia since 2015. He’s being charged with conspiracy to commit wire fraud, money laundering, and forced-labor scam across Colombia.

Individuals were held against their will in compounds and were forced to participate in cryptocurrency investment fraud schemes, also known as “pig butchering.”

Pig butchering is a type of scam that’s being used to depict victims of a fake romance or friendship who’ve been gradually lured into making increasing contributions as part of an investment fraud scheme. Victims are left with great financial losses, as well as psychological harm.

“Prince Group carried out these schemes by trafficking hundreds of workers and forcing them to work in compounds in Cambodia and execute the scams, often under the threat of violence. The compounds housed vast dormitories surrounded by high walls and barbed wire, and functioned as violent forced labor camps,” the Department of Justice says in a press release.

According to unsealed court documents, Zhi was directly involved in managing the scam compounds. He was also responsible for bribing local officials and maintained so-called “phone farms” at the compounds to facilitate various fraudulent schemes. Furthermore, he was responsible for using violence against workers who “caused trouble.”

Lastly, Zhi taught his associates sophisticated cryptocurrency laundering techniques to hide the source of fraudulent profits, including “spraying” and “funneling.” Some of the criminal proceeds were used to fund their lavish lifestyle, including luxurious travels, entertainment, and extravagant purchases, such as yachts, private jets, and vacation homes, as well as a Picasso painting purchased at a New York City auction.

“The defendant was the mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella, a criminal enterprise built on human suffering. Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States,” John A. Eisenberg, Assistant Attorney General for the Justice Department’s National Security Division, says in a statement.

“This indictment and historic forfeiture, the largest in Department history, reflect our commitment to using every tool at our disposal to ensure such crimes do not pay,” he adds.

If convicted, Zhi faces a maximum sentence of 40 years in prison.