Historic crypto asset seizure tied to Cambodia-based forced labor scam operation; alleged mastermind Chen Zhi remains at large
Largest Bitcoin Seizure in DOJ History
The U.S. Department of Justice (DOJ) has seized $15 billion worth of Bitcoin (BTC) connected to a massive “pig butchering” scam, marking the largest cryptocurrency asset forfeiture in the agency’s history.
- The Bitcoin was found in crypto wallets linked to Chen Zhi, a Cambodian national also known as “Vincent”.
- Zhi has been indicted by a Brooklyn federal court, but remains at large, according to the U.S. Attorney’s Office for the Eastern District of New York.
What Is a ‘Pig Butchering’ Scam?
“Pig butchering” is a fraudulent investment scheme where scammers build trust with victims over time—typically via social engineering tactics—before persuading them to invest in fake crypto platforms.
- Victims often lose their life savings, thinking they’re investing in legitimate assets.
- In this case, victims were globally targeted, and operations were run through forced-labor compounds in Cambodia.
“Individuals were trafficked and held against their will, forced to commit crypto fraud under threat of violence,” DOJ officials stated.
The Man Behind the Operation
Chen Zhi, also known as Vincent, is the founder of Prince Holding Group, a conglomerate with operations in 30+ countries.
- The group allegedly served as a front for scam compounds involved in human trafficking, forced labor, and cryptocurrency fraud.
- Zhi is believed to have personally overseen the operations behind the scam and profited billions in Bitcoin.
Despite the seizure, Zhi remains a fugitive, and the DOJ is working with international authorities to bring him to justice.
Trafficking and Violence at the Core
The DOJ’s filing paints a harrowing picture of the scam compounds:
- Hundreds of people were trafficked into Cambodia and forced to work in the scam centers.
- Workers operated under constant surveillance, facing threats of physical harm for noncompliance.
- These compounds systematically targeted victims in the U.S. and abroad through online communication platforms.
Implications for Crypto Regulation and Trust
This historic seizure underlines growing U.S. enforcement action against crypto-related financial crimes, especially those with international and human rights dimensions.
- The scale of the seizure demonstrates that even decentralized assets like Bitcoin are not beyond the reach of law enforcement.
- It also raises renewed concerns about regulatory gaps, cross-border fraud, and the use of crypto in illicit finance.
Bitcoin Price Trends and Sentiment
Following news of the seizure, Bitcoin (BTC) is down 2.81%, and has declined 3.43% over the past 12 weeks, reflecting broader volatility.
- While most analysts do not offer Buy/Sell ratings on BTC, sentiment remains mixed amid macroeconomic pressures, regulatory scrutiny, and recent scandals like this one.
The U.S. DOJ has seized $15 billion in Bitcoin from a Cambodia-based crypto fraud ring run by Chen Zhi, marking its largest-ever asset forfeiture. Linked to forced labor and a global “pig butchering” scam, the case highlights crypto’s dark underbelly and the DOJ’s growing enforcement capabilities.
