$15 Billion Bitcoin Seizure: How Billionaire Chen Zhi Built a Global Crypto Scam and Lost It All

Chen Zhi, a Chinese-born tycoon accused of orchestrating a multibillion-dollar cryptocurrency scam, was arrested in Cambodia and extradited to China on January 7. He was one of three Chinese nationals taken into custody after a months-long joint investigation between Cambodian and Chinese authorities. The move followed months of international pressure on Chen and his company, Prince Group, which was designated a transnational criminal organization by the U.S. and U.K.

U.S. prosecutors allege Chen directed forced labor operations in Cambodia, where workers were held in prison-like conditions and used to carry out cryptocurrency fraud schemes. These so-called 'pig butchering' scams targeted victims globally and netted billions in illicit funds. Chen faces up to 40 years in prison if convicted on wire fraud and money laundering conspiracy charges involving approximately $15 billion in seized Bitcoin.

Prince Group has denied the allegations, calling the charges baseless and politically motivated. The firm operates in real estate, financial services, and consumer goods, and has been a major player in Cambodia's economy. The U.S. and U.K. have imposed sanctions on Chen and his companies, while multiple Asian jurisdictions have frozen assets tied to the group.

Why the Move Happened

Chen's Cambodian citizenship was revoked in December 2025, according to a royal decree, clearing the way for his extradition. The operation was carried out at the request of Chinese authorities and was conducted within the framework of bilateral cooperation on transnational crime. It is unclear what charges Chen faces in China.

The extradition appears to reflect shifting diplomatic priorities between China and Cambodia. China has played a significant role in brokering peace between Cambodia and Thailand, while the U.S. has increasingly focused on countering scam operations in Southeast Asia. Analysts suggest that China may prefer to handle Chen within its own jurisdiction rather than face U.S. legal proceedings.

How Markets Reacted

The $15 billion Bitcoin seizure by U.S. authorities in October was the largest forfeiture in the Justice Department's history. This action sent shockwaves through the crypto market, prompting increased scrutiny of digital asset transactions and compliance practices. Several Asian jurisdictions, including Singapore, Hong Kong, and Taiwan, have also frozen assets linked to Chen's operations.

Investors and regulators are now closely monitoring how the U.S. and other governments will handle seized crypto assets. The U.S. Treasury has added 25 new crypto wallet addresses to its sanctions list, containing an estimated $780 million in Bitcoin. This has raised questions about the future of illicit digital assets and how they might be repurposed for legitimate uses.

What Analysts Are Watching

Analysts are focusing on the broader implications of the case for global anti-money laundering frameworks. The U.S. and other countries are now more aggressively targeting the intersection of cryptocurrency and organized crime. Cambodia's cooperation with international authorities marks a departure from its previous stance, in which it defended Prince Group's operations.

The case also highlights the growing role of Southeast Asia in transnational cybercrime. Scam centers in Cambodia, Myanmar, and Laos continue to pose a significant threat to global financial security. The U.S. has pledged $45 million in aid to help Cambodia and Thailand address the issue, with a focus on border stabilization and anti-scam initiatives.

The long-term impact of Chen Zhi's arrest and extradition remains to be seen. However, it is clear that the global crackdown on crypto fraud and forced labor networks is intensifying. Investors and financial institutions will need to remain vigilant as enforcement actions expand across multiple jurisdictions according to analysis.