Bitcoin News Today: DOJ Seizes $14B in Bitcoin, Choking Scam Network's Oxygen Supply

The U.S. Department of Justice has seized over $14 billion in Bitcoin tied to a sprawling cryptocurrency fraud operation orchestrated by Cambodian-based Prince Group, marking the largest forfeiture in DOJ history. The crackdown targets Chen Zhi, the founder and chairman of Prince Group, who faces charges of wire fraud conspiracy and money laundering conspiracy for his role in a "pig butchering" scam that defrauded victims globally[1]. The Treasury Department simultaneously designated Prince Group a transnational criminal organization and imposed sanctions on Zhi and over 100 affiliated entities[2].

The operation, described by U.S. Attorney Joseph Nocella as "one of the largest investment fraud operations in history," exploited forced labor in Cambodia to execute scams. Prosecutors revealed that Prince Group operated at least 10 "scam compounds," where trafficked workers were held under violent conditions to contact victims via social media and messaging apps. These workers, often migrants lured with promises of high-paying jobs, were forced to build trust with targets before stealing cryptocurrency investments[3]. One facility alone housed 1,250 mobile phones controlling 76,000 social media accounts[1].

The scam's scale was staggering. At its peak, prosecutors allege, the scheme generated $30 million daily in illicit proceeds, which were funneled into luxury assets including yachts, private jets, and a Pablo Picasso painting[2]. The Treasury Department highlighted that Prince Group's operations caused "billions of dollars in losses and untold misery" for victims, with forced labor camps surrounded by barbed wire and torture rooms documented in court filings[5]. Zhi, a Chinese-born naturalized U.S. citizen also known as "Vincent," remains at large but faces up to 40 years in prison if convicted[1].

The U.S. and U.K. coordinated sanctions against Prince Group, blocking its access to the global financial system and targeting entities like Jinbei Casino Hotel and Byex Exchange, which processed over $1.3 billion in crypto transactions[6]. Harvard's J. Daniel Sims, a transnational crime expert, noted that while the actions won't eradicate the scam economy overnight, they "shrink its oxygen supply" and send a message to regimes like Cambodia's that "elite crime as a ruling strategy is a double-edged sword"[2].

Blockchain analytics firm Elliptic identified Bitcoin wallets holding $2.3 billion linked to the network, with some funds mined between 2021–2022 and previously dormant[5]. The DOJ's seizure of 127,271 Bitcoin-valued at approximately $113,000 each-now awaits potential distribution to victims, though its volatile value complicates recovery efforts[4].

The case underscores the growing intersection of cryptocurrency, human trafficking, and global fraud. With Southeast Asia-based scams costing Americans $10 billion in 2024 alone-a 66% increase from 2023-the DOJ's action signals a shift toward aggressive enforcement in the crypto space[4]. As Sims observed, the indictment and sanctions "fundamentally change the risk calculus" for banks and investors, forcing scrutiny of Cambodia's elite-linked capital[2].