U.S. and U.K. Crack Down on $4B Crypto Scam Network Linked to Human Trafficking

The latest price of was $, in the last 24 hours. Recent developments surrounding the cryptocurrency ecosystem highlight the growing intersection between digital assets and transnational criminal activity. Law enforcement agencies from the United States and the United Kingdom have taken decisive action against a sophisticated global scam network operating in Southeast Asia, particularly in Cambodia. The operation, known as Prince Holding Group, has been linked to extensive online investment fraud and human trafficking, with victims lured under false pretenses and forced to participate in fraudulent cryptocurrency schemes.

These scams, commonly referred to as "pig butchering," typically involve cultivating trust with victims over extended periods through social media and messaging platforms. Once trust is established, victims are led to invest in fake trading platforms, only to have their funds disappear. The U.S. Department of Justice has reported that these types of schemes have cost Americans over $16.6 billion in losses. The Prince Holding Group is believed to be one of the most sophisticated networks involved in these operations, with victims being held in heavily guarded compounds under conditions of forced labor and coercion.

As part of its enforcement actions, the U.S. government has sought the forfeiture of 127,000 Bitcoin stored in wallets linked to the operation. This cryptocurrency is part of a larger network of illicit proceeds that were laundered through a complex web of over 100 shell companies operating globally. These entities were used to route funds through various crypto exchanges and mining operations before converting them into Bitcoin for storage in private wallets controlled by the group's leadership.

Investigators have traced at least $18 million from over 250 U.S. victims through shell companies operating in New York. These funds represent only a small fraction of the broader scheme, which has been estimated to have funneled billions in stolen assets back to Cambodia. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions against 146 individuals and entities connected to the Prince Group, labeling the network as a transnational criminal organization engaged in fraud, extortion, and human trafficking. These actions reflect a broader global strategy to dismantle criminal enterprises that exploit both technology and vulnerable populations.

U.S. officials have emphasized the deep connection between human exploitation and cryptocurrency-based fraud in Southeast Asia. The investigation into Prince Holding Group has revealed that some of the compounds used to house victims were operated under names such as Jin Bei Casino and Golden Fortune Resorts. These facilities were not only centers of forced labor but also hubs for high-volume scams targeting international investors. Victims were subjected to constant surveillance, abuse, and in some cases, murder. The findings underscore the alarming scale of the crisis and the urgent need for coordinated global responses.

Chen Zhi, the founder of Prince Holding Group, has been a central figure in the operation. A 38-year-old Chinese-born individual who renounced his citizenship years ago, Chen is accused of building a criminal enterprise under the guise of legitimate businesses in real estate, finance, and hospitality. The U.S. and U.K. enforcement actions against Prince Holding Group represent a significant escalation in the global fight against transnational crime networks that exploit digital assets and human vulnerabilities. These coordinated efforts highlight the importance of international collaboration in addressing complex and evolving threats.

The U.S. Treasury and the Department of Justice have taken additional steps to sever ties between the criminal network and the U.S. financial system. Actions against the Huione Group, a Cambodia-based financial services conglomerate, have been a key part of this strategy. The group was accused of laundering at least $4 billion in illicit proceeds, including funds from cyber heists linked to North Korea. These measures underscore the broader goal of disrupting the financial infrastructure that enables transnational criminal organizations to operate with impunity.

The enforcement actions against Prince Holding Group and its affiliates are part of an ongoing global effort to combat cryptocurrency-based fraud. In recent months, Tether has frozen nearly $50 million in USDT linked to a Southeast Asia-based scam ring, working in coordination with Chainalysis, Binance, and local law enforcement. This operation followed a 2023 case in which $225 million in USDT was seized in collaboration with the U.S. Secret Service. These efforts illustrate the increasing role of public-private partnerships in addressing financial crime in the digital age.

Private sector players, including Binance, have also contributed to these efforts. Binance recently joined T3+, a global anti-crime alliance launched by TRON, Tether, and TRM Labs, which has frozen over $250 million in illicit assets. In its first joint success, Binance helped freeze $6 million linked to another pig-butchering scam. Coinbase has also played a role in tracing stolen funds tied to international trafficking networks. These collaborations highlight the growing recognition of the private sector’s critical role in disrupting criminal activities in the digital economy.

U.S. data indicates that losses from pig-butchering scams have surged to $3.6 billion in 2024, a 40% increase from the previous year. Authorities warn that these networks are becoming increasingly sophisticated, combining crypto fraud with organized crime and human trafficking at an unprecedented scale. The coordinated actions against Prince Holding Group and related entities represent a critical step in addressing these evolving threats. As the digital economy continues to expand, the need for such collaborative enforcement efforts will only grow more pressing.

The U.S. and U.K. actions against Prince Holding Group represent a significant milestone in the global fight against transnational cybercrime and human trafficking. The coordinated efforts of regulatory bodies, law enforcement agencies, and private sector entities demonstrate the potential for a unified response to these complex and evolving threats. As digital currencies become more integrated into global financial systems, the need for robust regulatory frameworks and international cooperation will be essential in mitigating the risks posed by criminal exploitation of these technologies.