DOJ Shatters $15B Crypto Scam, Exposing Forced-Labor Camps Behind Fraud

The U.S. Department of Justice has seized $15 billion in bitcoin tied to a massive "pig butchering" scam operated by Cambodia-based Prince Group, marking the largest forfeiture action in DOJ history [1]. The Treasury Department simultaneously designated Prince Group as a transnational criminal organization and imposed sanctions, while the U.K. joined in targeting the group [2]. The operation, led by Prince Group founder Chen Zhi, allegedly defrauded victims globally through cryptocurrency scams, with U.S. losses alone reaching $10 billion in 2024 [3].

Chen Zhi, 38, faces charges of wire fraud and money laundering conspiracy for overseeing forced-labor camps in Cambodia where trafficked workers executed the scams [4]. Prosecutors described the compounds as "prison-like," with barbed-wire fencing, automated call centers, and threats of violence against workers. One facility, linked to Prince's Jinbei Casino Hotel, reportedly used 1,250 phones to control 76,000 social media accounts [5]. The scam involved building trust with victims online before tricking them into transferring cryptocurrency under false investment promises, with stolen funds funneled into luxury purchases like yachts, jets, and a Picasso painting [6].

The Treasury's sanctions block Prince Group's financial activity in the U.S., severing ties with global institutions [7]. If courts allow, the seized bitcoin could be returned to victims, though a portion might join President Donald Trump's proposed Strategic Reserve [8]. The DOJ highlighted the case as a historic blow against cyber-fraud, with U.S. Attorney Joseph Nocella calling it "one of the largest investment fraud operations in history" [9].

Chen, who remains at large, allegedly directed the scheme since 2015, leveraging political connections in Cambodia and bribes to evade law enforcement [10]. The U.N. estimates 100,000 people were forced into online scams in Cambodia alone in 2023 [11].