Federal authorities have seized $15 billion in Bitcoin from Chen Zhi, the alleged mastermind behind a massive cryptocurrency fraud operation linked to forced labor camps in Cambodia. Known as the “Pig Butcher,” Zhi, also called “Vincent,” remains at large while facing multiple criminal charges.
What Happened: Fraud Scheme and Seizure of Assets
On Tuesday, federal prosecutors in Brooklyn announced the seizure of $15 billion worth of Bitcoin tied to Chen Zhi, founder and chairman of Prince Holding Group in Cambodia. Zhi, 37, faces charges including:
- Wire fraud conspiracy
- Money laundering conspiracy
According to court documents, Zhi and his associates allegedly ran one of the largest cryptocurrency scams in history, targeting victims worldwide while exploiting trafficked migrant workers in forced labor camps.
The “Pig Slaughter” Scam: How It Worked
The fraudulent scheme, dubbed the “pig slaughter” scam, involved scammers contacting victims via text or social media. They would:
- Pretend to be someone else or create fake identities.
- Build trust through extended conversations or fabricated emergencies.
- Convince victims to invest in non-existent cryptocurrency funds through fraudulent websites or apps.
Once the victims transferred funds, the scammers disappeared, leaving investors with no recourse.
Forced Labor and Human Trafficking in Cambodia
Chen Zhi’s operation allegedly forced thousands of migrant workers into harsh conditions at ten different compounds in Cambodia. Workers were confined behind high walls and barbed wire, subjected to physical abuse, and forced to manage phone farms with thousands of devices and tens of thousands of social media accounts to perpetuate the scam.
Victims were coerced into long working hours, and beatings were used to maintain control, highlighting a disturbing intersection of digital crime and human trafficking.
Money Laundering and Global Reach
Prince Group allegedly laundered approximately $18 million through shell companies in local networks, including Brooklyn. The illicit funds were used to purchase luxury assets, including yachts, jets, and even a Picasso painting at a New York auction house.
U.S. Attorney Joseph Nocella stated:
“As charged, the defendants directed one of the largest investment fraud campaigns in history, fueling an illegal industry that is reaching epidemic levels. Prince Group’s investment scams have caused billions of dollars in losses and untold suffering to victims worldwide, including trafficked individuals forced to work against their will.”
What Happens Next: Hunt for Chen Zhi
Chen Zhi remains at large, and authorities are actively working to locate and apprehend him. The unprecedented scale of fraud, trafficking, and money laundering has drawn attention from law enforcement agencies around the globe.
The U.S. government’s seizure of Bitcoin highlights its commitment to dismantling illicit digital operations and serves as a warning to other potential cybercriminals.
Conclusion: Global Impact and Ongoing Investigation
This case underscores the growing threat of large-scale cryptocurrency fraud intertwined with human trafficking. Authorities continue to investigate, and updates will follow as efforts to locate Chen Zhi and recover assets progress.