US Seizes $14 Billion in Bitcoin from Crypto Scam Linked to Chinese National
By: Eliza Bennet
The United States is in the process of seizing over $14 billion in Bitcoin, stemming from a cross-border crypto scam orchestrated by Chinese national Chen Zhi. This enormous haul results from a wide-reaching "pig butchering" scam, which a legal filing claims involves a concoction of crypto fraud, human trafficking, and political corruption. Chen Zhi, identified as the mastermind, operated under the cloak of Prince Group within Cambodia's shadowy digital economy. This group became infamous for its fraudulent operations, which allegedly comprised scam compounds doubling as detention centers for trafficked laborers coerced into running deceitful crypto schemes.
The disruption of this criminal enterprise has been labeled a significant coup by law enforcement, revealing the breadth of scams that emotionally manipulate victims for financial gain. Under Chen's direction, these compounds not only functioned as scams but also fortified the group's hold within Cambodia’s underground economy by leveraging political connections and evading prosecution. This investigation unfolds as part of the U.S. government's broader efforts, as outlined in an Executive Order regarding the establishment of a Strategic Bitcoin Reserve, which could grow significantly with the integration of these illegally acquired Bitcoins.
Sanctions have already been implemented against Chen and his affiliates through a coordinated international effort. The U.S., alongside the U.K.'s Foreign, Commonwealth, and Development Office (FCDO), announced punitive measures against the networks associated with the Prince Group. The Office of Foreign Assets Control (OFAC) has sanctioned 146 individuals and entities that have affiliations with this transnational criminal organization.
In conjunction with these sanctions, U.S. financial authorities have employed legal maneuvers to isolate entities like Cambodia's Huione Group from the American financial system, citing its role as a facilitator in laundering proceeds from such crypto crimes. These actions by federal agencies reflect a determined approach to thwarting international crypto fraud networks and fortifying regulatory frameworks around digital assets.
