Bitcoin News Today: DOJ's $15B Bitcoin Seizure Unveils Cybercrime Network Built on Forced Labor

The U.S. Department of Justice has seized a record $15 billion in Bitcoin from Chen "Vincent" Zhi, the founder of Cambodia-based Prince Holding Group, in what prosecutors are calling one of history's largest cryptocurrency fraud operations. The seizure, announced Oct. 14, targets proceeds from a sprawling "pig butchering" scam network that allegedly used forced labor to defraud victims globally, with funds funneled into luxury real estate, artwork, and high-end assets [1]. Zhi, 37, faces charges including wire fraud, money laundering, and orchestrating violent labor camps in Cambodia, where trafficked workers were held under threat of violence to execute the scams [4].

The DOJ alleges that Zhi's operation, spanning over a decade, involved at least 10 scam compounds in Cambodia. These facilities, described as "forced labor camps" with barbed wire and high walls, housed workers who were coerced into luring victims via social media and fake romantic relationships. Once trust was established, scammers directed victims into fraudulent cryptocurrency investment schemes, siphoning funds that were later laundered through gambling operations, mining ventures, and shell companies . At its peak, the scheme reportedly generated up to $30 million daily in illicit profits [1].

The U.S. Treasury and the United Kingdom coordinated sanctions against Zhi and 146 affiliated entities, designating Prince Group a "transnational criminal organization." British authorities froze assets including a $16 million London mansion and a $126 million office building in the City of London. The Treasury also blocked access to the Huione Group, a financial network accused of laundering billions for the operation, from U.S. banks [2]. The U.S. and UK emphasized the case as a landmark effort to dismantle cybercrime ecosystems fueled by forced labor and cross-border collusion [6].

The seized Bitcoin-127,271 coins-exceeds the previous record for U.S. crypto seizures, which stood at $3.6 billion in 2022 from the Bitfinex heist. The DOJ's forfeiture action is now the largest in its history, surpassing even the Silk Road takedown. However, the funds' origins have raised questions: Elliptic, a crypto-tracing firm, noted the Bitcoin may have been stolen in 2020 from Chinese mining firm Lubian, with prosecutors alleging Zhi funneled the funds through mining operations to "clean" them [2].

Experts highlight the case's broader implications for global cybercrime. Ari Redbord of TRM Labs called the operation "factory-scale fraud" enabled by crypto's speed and secrecy, while John Wojcik of Infoblox noted Prince Group's role as a "leader in criminal fintech infrastructure." The FBI's 2024 Internet Crime Report reported $5.8 billion in crypto investment fraud losses, underscoring the urgency of such enforcement [2].

Zhi, who remains at large, could face up to 40 years in prison if convicted. The DOJ's Joseph Nocella called the operation "one of the largest investment fraud schemes in history," while Treasury Secretary Scott Bessent emphasized the need to protect Americans from "predatory criminals." The case also raises questions about how seized crypto will be managed, with some suggesting it could bolster a U.S. strategic Bitcoin reserve-though legal hurdles remain in returning funds to victims .