U.S. Justice Department Seizes $15bn in Bitcoin Tied to Cambodia-Based ‘Pig Butchering’ Scam

The U.S. Department of Justice has seized roughly $15 billion worth of bitcoin from wallets linked to a man prosecutors described as the ringleader of one of the largest cryptocurrency fraud schemes ever uncovered — a transnational criminal enterprise built on human trafficking, investment scams, and digital deception.

Federal prosecutors in Brooklyn, New York, said on Tuesday that the bitcoin belonged to Chen Zhi, also known as “Vincent,” a Chinese businessman and founder of the Prince Holding Group, a sprawling Cambodia-based conglomerate that, according to investigators, masked its global criminal operations behind legitimate corporate structures. The Justice Department said the seizure marks the largest forfeiture action in its history, underscoring the expanding scale and sophistication of international crypto-related financial crimes.

Zhi remains at large, but the unsealed indictment paints a grim picture of an empire built on exploitation and deceit. U.S. Attorney Joseph Nocella described him as the orchestrator of “one of the largest investment fraud operations in history,” adding that the scheme had “fueled an illicit industry that is reaching epidemic proportions.”

“Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will,” Nocella said.

According to the DOJ, the Prince Group secretly evolved into one of Asia’s most powerful transnational criminal networks, with operations spanning over 30 countries. Prosecutors allege that under Zhi’s leadership, the group constructed and managed “forced-labor scam compounds” across Cambodia — sites where hundreds of people were trafficked, detained, and forced to participate in cryptocurrency scams.

The scams followed a pattern increasingly known worldwide as “pig butchering” — a term derived from the method of slowly “fattening” victims with fake affection and trust before financially “slaughtering” them. Fraudsters, often posing as romantic partners or investment advisers, would contact victims through social media or messaging apps. They would gradually persuade them to invest in supposedly high-return cryptocurrency opportunities. Once victims transferred their funds, the money was siphoned away, laundered, and hidden behind layers of digital accounts controlled by the syndicate.

“In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators,” the U.S. Attorney’s Office said in its statement. “The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds.”

Investigators found that the scam’s victims spanned continents, including many from the United States. Prosecutors said losses from Prince Group’s crypto investment schemes reached billions of dollars, leaving a global trail of financial and emotional devastation.

But beyond financial fraud, the DOJ said the case exposed a darker underbelly — one that combined modern digital crime with traditional forms of human exploitation.

“Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes,” the agency said, adding that many were “trafficked and forced to work under the threat of violence.”

These victims, according to prosecutors, were lured to Cambodia and neighboring countries with false promises of legitimate employment, only to have their passports seized and be subjected to forced labor. Inside the scam compounds, they were made to target unsuspecting people online, often under strict surveillance and coercion.

Prosecutors further allege that Zhi and other top executives within the Prince Group used their wealth and influence to insulate themselves from scrutiny. The indictment details how the group allegedly leveraged political connections and paid bribes to public officials in several countries to shield their operations from law enforcement. By exploiting local authorities, they managed to maintain the façade of a legitimate conglomerate even as their criminal enterprises expanded.

The Prince Group has long presented itself as one of Cambodia’s largest and most respected investment companies, with interests spanning real estate, finance, and hospitality. But the DOJ’s charges now threaten to dismantle that image, exposing what prosecutors describe as the organization’s “dual identity” — a corporate empire built on systemic criminality.

The DOJ’s record-breaking bitcoin seizure is not only a symbolic strike against the syndicate but also a milestone in the U.S. government’s growing ability to trace and confiscate illicit crypto assets. In recent years, law enforcement agencies have become increasingly adept at tracking blockchain transactions and identifying digital wallets linked to criminal networks, even when criminals attempt to use mixers or shell accounts to obscure the flow of funds.

The case also adds to a growing list of “pig butchering” crackdowns worldwide. In 2023 and 2024, several Asian governments, including Thailand, Laos, and the Philippines, conducted raids on compounds suspected of housing trafficking victims used in similar scams. Human rights groups have repeatedly warned that the problem is spreading rapidly across Southeast Asia, with Cambodia at its center.

The economic impact has been staggering. The FBI estimates that Americans alone lost over $3.5 billion to pig-butchering scams in 2023, and officials say the real figure could be far higher due to underreporting. Analysts warn that these scams are increasingly blending emotional manipulation with sophisticated digital laundering techniques, making them harder to detect and prosecute.

Experts say the DOJ’s massive seizure could mark a turning point in global crypto law enforcement — both as a deterrent and as a model for future international cooperation.