The United States government has taken custody of roughly 127,271 Bitcoin, worth about $15 billion, marking the largest cryptocurrency forfeiture in Department of Justice history. The move effectively adds a massive tranche to the federal government’s strategic Bitcoin reserves following the dismantling of an alleged transnational cyber-fraud empire based in Cambodia.
The seizure stems from a sweeping federal indictment unsealed Tuesday in Brooklyn, charging Chen Zhi, 37, a U.K. and Cambodian national known as Vincent, and chairman of Prince Holding Group, with wire fraud conspiracy and money laundering conspiracy, according to a DOJ press release.
Prosecutors allege Chen and his associates “operated forced-labor scam compounds across Cambodia” that carried out “cryptocurrency investment fraud schemes, known as ‘pig butchering’ scams, that stole billions of dollars from victims in the United States and around the world.”
The DOJ release says that the seized funds—referred to in court documents as the Defendant Cryptocurrency—are now under U.S. government control. “The U.S. Attorney’s Office for the Eastern District of New York and the Justice Department’s National Security Division also filed today a civil forfeiture complaint against approximately 127,271 Bitcoin … currently worth approximately $15 billion … presently in the custody of the U.S. government,” the department stated.
Attorney General Pamela Bondi called the case “one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” emphasizing that the United States will “use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit.”
According to the indictment, Prince Group’s scam operations trafficked hundreds of workers who were “confined in prison-like compounds and forced to carry out online scams on an industrial scale.” Prosecutors allege the network laundered illicit crypto proceeds using advanced “spraying” and “funneling” techniques to obscure the origins of stolen assets.
Assistant Attorney General John A. Eisenberg described Chen as “the mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella,” adding that the “historic forfeiture, the largest in Department history, reflect[s] our commitment to using every tool at our disposal to ensure such crimes do not pay.”
Chen remains at large. The Department of the Treasury designated Prince Group a transnational criminal organization and announced sanctions against Chen and affiliated entities. The United Kingdom also announced parallel sanctions through its Foreign, Commonwealth & Development Office.
The FBI New York Joint Asian Criminal Enterprise Task Force, supported by the Bureau’s Virtual Asset Unit, led the investigation. “Today the FBI and partners executed one of the largest financial fraud takedowns in history,” said FBI Director Kash Patel. “This is an individual who allegedly operated a vast criminal network across multiple continents … targeting millions of innocent victims in the process. Justice will be done."