US Seizes Record $15 Billion in Bitcoin from Scam Network Linked to Forced Labor Camps

US Authorities Uncover Massive Crypto Scam Linked to Forced Labor Camps

In a stunning development that underscores the dark underbelly of the digital asset world, the U.S. Department of Justice has seized a staggering $15 billion in Bitcoin. This record-breaking confiscation is directly linked to the illicit activities of a criminal syndicate known as Prince Group, which orchestrated elaborate cryptocurrency investment frauds, chillingly dubbed "pig butchering" scams, impacting thousands of victims primarily in the United States.

The Mechanics of Deception: Pig Butchering Scams Exposed

These insidious schemes relied on a calculated build-up of trust. Perpetrators would initiate contact through social media, dating apps, or direct messaging, slowly weaving a web of deception. Their objective was to convince unsuspecting individuals to invest in seemingly lucrative cryptocurrency projects. The cruel reality, however, was that all funds funneled into these phantom investments were siphoned directly into the criminals' accounts.

A New Benchmark in Crypto Seizures

This $15 billion seizure shatters the previous record, which stood at $7.3 billion in Bitcoin. That prior seizure, also involving significant sums unlikely to be recovered by victims, was attributed to the so-called "Queen of Bitcoin." The sheer magnitude of the current confiscation highlights the escalating sophistication and financial reach of organized crypto crime.

Prince Group: A Global Network of Exploitation

Operating since at least 2015, Prince Group has established a vast and complex network, boasting over 100 shell companies strategically spread across more than 30 countries. Their modus operandi involves not only defrauding investors but also recruiting thousands of individuals as unwilling participants, often through coercion. This global reach has historically allowed them to evade law enforcement agencies.

The Horrifying Link to Forced Labor

In a particularly disturbing revelation, U.S. Department of Justice officials detailed how Prince Group implemented its fraudulent schemes by trading hundreds of workers and forcing them into grueling labor within specialized compounds in Cambodia. These facilities, described as functioning like "forced labor camps," were characterized by large dormitories, imposing high walls, and razor-wire fencing, all maintained under the constant threat of violence against the captive workforce.

The Mastermind and His Brutal Reign

At the helm of this criminal enterprise is Chen Zhi, also known as Vincent. He is identified as the leader of Prince Group and the architect of the massive crypto-fraud operation, though he remains at large. Evidence suggests Zhi was personally involved in bribing officials to sidestep investigations, directly overseeing the "camp" operations, and employing brutal violence against those held against their will. To launder the illicit proceeds, Zhi instructed his accomplices to obfuscate the flow of funds by distributing large volumes of cryptocurrency across hundreds of addresses. These assets were then moved to exchange wallets or converted into fiat currency and deposited into bank accounts. The operation also leveraged automated call centers managing millions of phone numbers to execute their scams.

Lavish Lifestyles Funded by Deceit

The ill-gotten gains were not merely stashed away. Records indicate that a portion of the funds financed extravagant lifestyles, including luxury travel, yachts, private jets, opulent villas, and even the acquisition of a Picasso painting at a New York auction. This stark contrast between the victims' losses and the criminals' opulent spending paints a grim picture of the syndicate's priorities.

Sanctions and Mounting Losses

In response to these revelations, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on Chen Zhi and an additional 146 Prince Group members. The OFAC also highlighted that American losses from online investment fraud have surged past $16.6 billion in recent years. Compounding these figures, U.S. government estimates indicate that Americans lost at least $10 billion to Southeast Asia-based fraudulent operations in 2024 alone, a staggering 66% increase from the previous year.