Record Breaking Bitcoin Forfeiture Action

Chairman of Prince Group Indicted for Operating Cambodian Forced-Labor Scam Compounds Engaged in Cryptocurrency Fraud Schemes

Primary Category: NEWS / Crimes & Criminals

Authors:
•  SCARS Editorial Team – Society of Citizens Against Relationship Scams Inc.
•  Portions from U.S. Department of Justice

About This Article

Federal authorities announced an indictment charging Chen Zhi, chairman of Cambodia-based Prince Group, with wire fraud conspiracy and money laundering conspiracy tied to forced-labor compounds that executed large cryptocurrency investment schemes known as “pig butchering.” The filing describes trafficked workers confined in guarded facilities, phone farms that drove mass outreach, and laundering methods that split, layered, and reconsolidated crypto before conversion through merchant fronts, gambling operations, and mining financed with stolen funds. Prosecutors simultaneously filed a civil forfeiture complaint for about 127,271 bitcoin, valued near 15 billion dollars, now in U.S. custody. Allegations include bribes to officials, political protection, violence inside compounds, and luxury spending on jets, yachts, real estate, and fine art. U.S. agencies coordinated with international partners on sanctions and investigative support. The defendant remains at large and is presumed innocent; if convicted, the charges carry a potential maximum of forty years.

Chairman of Prince Group Indicted for Operating Cambodian Forced-Labor Scam Compounds Engaged in Cryptocurrency Fraud Schemes

Federal prosecutors unsealed an indictment charging Chen Zhi, the founder and chairman of Cambodia-based Prince Group, with wire fraud conspiracy and money laundering conspiracy tied to forced-labor scam compounds that ran large-scale cryptocurrency investment fraud. According to the filing, trafficked workers were confined in guarded facilities, directed to execute “pig butchering” schemes, and managed through phone farms and strict quotas. The Justice Department also filed a civil forfeiture complaint for approximately 127,271 bitcoin, valued at about 15 billion dollars, described as proceeds and instruments of the schemes and now held in U.S. custody, which can potentially be returned to their victims.

Investigators say that the operation split, layered, and re-consolidated crypto through techniques called spraying and funneling, then washed funds through merchant fronts, online gambling, and crypto mining financed with stolen capital. The record cites bribes, political influence, and violence inside the compounds, along with luxury spending on yachts, jets, real estate, collectibles, and fine art. U.S. agencies announced coordinated action, while allied governments issued related sanctions. The defendant remains at large and is presumed innocent unless and until proven guilty. If convicted, the charged offenses carry a potential maximum of forty years’ imprisonment. This case marks one of the largest combined human trafficking and cyber-enabled fraud actions described by the Department of Justice to date.

Department of Justice Files Largest Ever Forfeiture Action Against Approximately $15 Billion in Bitcoin Currently in U.S. Custody

An indictment was unsealed today in federal court in Brooklyn, New York, charging Chen Zhi, also known as “Vincent,” the founder and chairman of Prince Holding Group (Prince Group), a multinational business conglomerate based in Cambodia, with wire fraud conspiracy and money laundering conspiracy for directing Prince Group’s operation of forced-labor scam compounds across Cambodia.  Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as “pig butchering” scams, that stole billions of dollars from victims in the United States and around the world.  The defendant is at large.

The United States Attorney’s Office for the Eastern District of New York and the Department’s National Security Division also filed today a civil forfeiture complaint against approximately 127,271 bitcoin, currently worth approximately $15 billion, that are proceeds and instrumentalities of the defendant’s fraud and money laundering schemes, and were previously stored in unhosted cryptocurrency wallets whose private keys the defendant had in his possession.  Those funds (the Defendant Cryptocurrency) are presently in the custody of the U.S. government.  The complaint is the largest forfeiture action in the history of the Department of Justice.

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John A. Eisenberg,  Assistant Attorney General for the Justice Department’s National Security Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Frank A Tarentino III, Special Agent in Charge, Drug Enforcement Administration, New York Division (DEA New York), and William Ferrari , Deputy Assistant Director, U.S. Department of State’s Diplomatic Security Service (DSS), Office of Investigations, announced the indictment and forfeiture action.

“Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” stated Attorney General Bondi.  “By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit.  We are grateful for the hard work of Director Patel and the men and women of the FBI.”

“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” stated United States Attorney Nocella.  “Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will.  This historic indictment and forfeiture complaint send a strong message to fraudsters everywhere that we will pursue you no matter where you are, no matter who you are, and no matter your insidious methods, and we will never stop fighting for victims.”

“As alleged, the defendant was the mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella, a criminal enterprise built on human suffering.  Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States,” stated Assistant Attorney General Eisenberg.  “This indictment and historic forfeiture, the largest in Department history, reflect our commitment to using every tool at our disposal to ensure such crimes do not pay.”

“Chen Zhi, the chairman of Prince Group, a transnational criminal organization, allegedly orchestrated an international cryptocurrency investment fraud scheme and labor trafficking network to steal billions of dollars from thousands of victims,” stated FBI Assistant Director in Charge Raia.  “Zhi allegedly victimized countless individuals: forcing thousands to serve as trapped accomplices and targeting countless others for their wallets.  By leveraging his co-conspirators and political influence, this alleged operation plagued all corners of the globe and evaded law enforcement detection for years.  Today’s indictment and historical forfeiture action demonstrates the FBI’s relentless determination to eradicate all unlawful revenue streams fueling criminal activity no matter where they are in the world. 

“Once again, we see the tremendous success of DEA’s Trident Initiative, an initiative built with our federal law enforcement partners to target and dismantle sophisticated criminal networks and their leadership, operating across the globe,” stated DEA New York Special Agent in Charge Tarentino.  “This investigation exposes a staggering level of fraud, corruption, and criminal greed that allowed billions of dollars in illicit funds to flow through global financial systems, leaving behind a trail of victims.  It also highlights how transnational criminal organizations continue to evolve, leveraging cryptocurrency and other digital assets to move their money and mask their crimes.  Money laundering isn’t a victimless crime, it fuels drug trade, funds violence, and undermines the rule of law.  The DEA remains committed to tracing every dollar, following every transaction, and bringing those who abuse our financial networks to justice.”

“This case is a powerful example of the DSS global footprint and our ability to collaborate seamlessly with both U.S. and international law enforcement on complex, multi-jurisdictional fraud schemes,” stated DSS Deputy Assistant Director Ferrari.  “Every day, DSS and our partners around the world are conducting investigations just like this, disrupting transnational criminal networks and protecting U.S. interests abroad.”

As alleged in the indictment and forfeiture complaint, since approximately 2015, the defendant has been the founder and chairman of Prince Group, a Cambodian corporate conglomerate that operates dozens of business entities in more than 30 countries.  Prince Group is ostensibly focused on real estate development, financial services, and consumer services.  However, in secret, the defendant and his top executives grew Prince Group into one of Asia’s largest transnational criminal organizations.  Under the defendant’s direction, Prince Group made enormous profits operating scam compounds across Cambodia that perpetrated fraudulent cryptocurrency investment schemes.

To perpetrate these schemes, malicious actors contacted unwitting victims through messaging or social media applications and convinced them to transfer cryptocurrency to specified accounts based on false promises that the funds would be invested and generate profits.  In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators.  The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds.

Prince Group’s schemes targeted victims around the world, including in the United States, with assistance from local networks working on Prince Group’s behalf.  One such network operated in Brooklyn, New York and facilitated the fraudulent transfer and laundering of millions of dollars on behalf of Prince Group from over 250 victims in New York and across the country.

Prince Group carried out these schemes by trafficking hundreds of workers and forcing them to work in compounds in Cambodia and execute the scams, often under the threat of violence.  The compounds housed vast dormitories surrounded by high walls and barbed wire, and functioned as violent forced labor camps.  The defendant was directly involved in managing the scam compounds and maintained records associated with each one, including ledgers tracking profits and which fraudulent schemes were run out of which rooms.  The defendant also maintained documents describing and depicting “phone farms” at the compounds: automated call centers that used thousands of phones and millions of mobile telephone numbers to facilitate the various fraudulent schemes.  The defendant was directly involved in using violence against the individuals within the forced labor camps and possessed images of Prince Group’s violent methods, including photographs depicting beatings and other methods of torture.  The defendant communicated directly with his subordinates about beating individuals who “caused trouble,” in one case specifying that the victims should not be “beaten to death.”

In furtherance of these schemes, the defendant and a close network of Prince Group’s top executives used their political influence in multiple foreign countries to protect their criminal enterprise and paid bribes to public officials to avoid disruption by law enforcement.  They subsequently laundered the proceeds of the fraudulent schemes through professional money laundering operations and through Prince Group’s own network of ostensibly legal business enterprises, including its online gambling and cryptocurrency mining operations.

At the defendant’s direction, Prince Group associates used sophisticated cryptocurrency laundering techniques to obscure the source of fraudulent Prince Group profits, including “spraying” and “funneling” techniques in which large volumes of cryptocurrency were repeatedly disaggregated across scores of virtual currency addresses and then re-consolidated into fewer addresses to obscure the source of the funds.  Some of these criminal proceeds were ultimately held in wallets at cryptocurrency exchanges or exchanged for traditional currency and stored in traditional bank accounts.  Other criminal proceeds included the Defendant’s Cryptocurrency, which was stored in unhosted cryptocurrency wallets whose private keys the defendant personally held.  The defendant maintained diagrams recording the process by which some of the Defendant’s Cryptocurrency was laundered.  The defendant boasted to others of Prince Group’s mining businesses that “the profit is considerable because there is no cost,” that is, unlike legitimate enterprises, the operating capital for the cryptocurrency mining businesses comprised money stolen from Prince Group’s many victims.

The defendant and his co-conspirators subsequently used some of the criminal proceeds for luxury travel and entertainment and to make extravagant purchases such as watches, yachts, private jets, vacation homes, high-end collectibles, and rare artwork, including a Picasso painting purchased through an auction house in New York City.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted, the defendant faces a maximum sentence of 40 years’ imprisonment.

The investigation was conducted by the FBI New York Joint Asian Criminal Enterprise Task Force with assistance from the FBI’s Virtual Asset Unit.

In parallel with today’s actions by the Department of Justice, the Department of the Treasury today designated Prince Group as a transnational criminal organization and announced sanctions against the defendant and multiple associated individuals and entities, for their roles in illicit activity.  The United Kingdom’s Foreign, Commonwealth and Development Office also announced sanctions.     

If you have information about Chen Zhi or Prince Group, please contact the FBI at PrinceGroupTips@fbi.gov.  According to the FBI Internet Crime Complaint Center’s 2024 Internet Crime Report, cryptocurrency investment fraud caused more than $5.8 billion in reported losses in 2024 alone.  You can learn more about cryptocurrency investment fraud here:  https://www.fbi.gov/how-we-can-help-you/victim-services/national-crimes-and-victim-resources/cryptocurrency-investment-fraud.  Members of the public who believe they are victims of cryptocurrency investment fraud and other cyber-enabled crime should contact the FBI Internet Crime Complaint Center at https://www.ic3.gov. 

The government’s case is being handled by the Eastern District of New York’s National Security and Cybercrime, Asset Recovery, Business and Securities Fraud, and Public Integrity Sections.  Assistant United States Attorneys Alexander F. Mindlin, Andrew D. Reich, Benjamin Weintraub, and Rebecca M. Schuman are in charge of the prosecution, in partnership with Deputy Chief Christopher B. Brown of the National Security Division’s NatSec Cyber Section, and Assistant United States Attorney Tanisha Payne of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.

The Department of Justice’s Office of International Affairs provided valuable assistance during the investigation.  The Office also thanks the United Kingdom’s National Crime Agency, the Isle of Man Constabulary’s Proactive International Money-Laundering Investigations Team, and the United Kingdom’s Foreign, Commonwealth & Development Office, which also announced sanctions today against entities related to Prince Group.

The Defendant:

• CHEN ZHI (also known as “Vincent”) Age: 37, United Kingdom and Cambodia
• E.D.N.Y. Docket No. 25-CR-312
• E.D.N.Y. Docket No. 25-CV-5745
• ecf_-_complaint_25cv5745.pdf

Recover Your Bitcoin

To claim restitution from seized Bitcoin by the Department of Justice (DOJ), victims should first report the crime to the FBI’s Internet Crime Complaint Center (IC3). The DOJ will typically use the seized funds to provide restitution to victims after a criminal case concludes and a court issues a restitution order. Victims should look for announcements from the DOJ or U.S. Attorney’s Offices for specific instructions regarding a case. 

Step 1: Report the crime

• File a report with the FBI’s Internet Crime Complaint Center (IC3) to report the cryptocurrency scam.
• When filing the report, provide as much detail as possible, including transaction information.
• If you have previously filed a complaint related to the same case, note the prior complaint number in your new report. 

Step 2: Cooperate with the investigation

• The FBI will conduct an investigation, and law enforcement may contact you for additional information. 
• Be aware that the government is committed to seizing assets and holding criminals accountable. 
• For specific cases, the DOJ may provide a specific case number or code to include in your complaint. 

Step 3: Follow the restitution process

• Once a criminal case is prosecuted and a conviction is secured, the court can issue a restitution order to compensate victims. 
• Seized cryptocurrency will be liquidated to provide restitution according to the court’s order. 
• You will be notified of the restitution process through official channels, such as a press release or information provided on the relevant Department of Justice (DOJ) website. 
• The DOJ will work to return the funds to victims, but the process can take time depending on the complexity of the case. 
• Be cautious of third parties who claim they can recover funds for a fee, as these are often scams themselves. 

Related Articles

• Chinese Court Sentences 11 Scammers to Death – 2025
• U.S. Government Going After Southeast Asian Scam Centers – 2025

Glossary

• Asset recovery — Describes the legal process that seeks to identify, restrain, and return criminal proceeds. In this case, prosecutors allege that bitcoin linked to the schemes is now in government custody, which can support restitution. Clear records from victims often strengthen any recovery attempt.
• Assistant Attorney General — Refers to a senior Justice Department official who oversees major national cases. Public statements from this role typically signal policy priorities and the scale of a prosecution. Their remarks help victims understand why a case receives federal attention.
• Barred-compound confinement — Describes walled facilities with guards and restricted movement. Reports of beatings and threats indicate forced labor conditions rather than legitimate employment. Such facts may affect future victim-witness support and immigration protections.
• Bitcoin (BTC) — A digital asset recorded on a public blockchain and transferred through wallet addresses. Large balances can move quickly across borders, which complicates recovery. Seizures require control of private keys or cooperation from custodians.
• Blockchain analysis — Means tracing transactions across a public ledger to link deposits, hops, and cash-outs. Investigators combine on-chain data with exchange records to identify holdings. Victims benefit when they provide exact timestamps and wallet addresses.
• Bribery of public officials — Describes payments or favors given to influence official action. Allegations of bribery explain how compounds operated with protection. Such conduct often triggers sanctions and extra charges.
• Brooklyn federal court (EDNY) — Refers to the U.S. District Court for the Eastern District of New York. High-impact cyber and international fraud cases are frequently filed here. The court location does not limit who can be a victim.
• Civil forfeiture complaint — Names a lawsuit against property that alleges the property is connected to crime. The filing can freeze assets before a criminal verdict. Victims may later petition the government for remission or restoration.
• Criminal enterprise — Describes a structured group that commits repeated crimes for profit. Evidence of roles, records, and coordination supports this designation. Enterprise findings help agencies attack leadership and finances, not only front-line workers.
• Cryptocurrency exchange — Identifies a business that converts fiat money to crypto or between crypto assets. Exchanges hold user balances and may honor lawful seizure or freeze orders. Prompt victim reports can support time-sensitive holds.
• Cryptocurrency investment fraud — Refers to schemes that solicit deposits with fake trading, staking, or mining claims. Offenders often build relationships first, then move funds into controlled wallets. Losses can be large and fast once trust forms.
• Defendant at large — Means the named person has not been arrested or is outside U.S. custody. Warrants and notices can follow, including international requests. Victims may still see asset actions move forward while a defendant remains abroad.
• Department of Justice (DOJ) — Identifies the U.S. agency responsible for federal prosecutions and asset recovery. Multiple DOJ sections can join when crimes span borders and finance. Public filings offer official facts that victims can cite to banks.
• Diplomatic Security Service (DSS) — Refers to the State Department’s investigative arm that supports global cases. DSS assists with cross-border interviews, document collection, and travel records. Their involvement can help locate witnesses and suspects.
• Extradition request — Describes a formal legal process to transfer a suspect from one country to another for trial. Treaties and local law control timing and outcomes. Victims may experience delays while these processes unfold.
• Federal indictment — Names a grand jury charging document that begins a felony case. It outlines alleged crimes and supporting facts but is not a conviction. The presumption of innocence remains until proven otherwise.
• Funneling (crypto) — Describes the re-consolidation of many small crypto transfers into fewer addresses. The goal is to hide the origin and prepare for liquidation. Pattern detection at exchanges can expose these moves.
• Human trafficking (forced labor) — Refers to recruiting, transporting, or holding people through force, fraud, or coercion for work. Victims can qualify for services and protections under U.S. law. Trafficked workers may also be witnesses in fraud prosecutions.
• IC3 report — Identifies a complaint filed with the FBI’s Internet Crime Complaint Center. An IC3 number documents a loss and supports bank, exchange, or insurer discussions. Timely filing preserves details needed for investigative leads.
• Instrumentalities of crime — Describes property used to commit or facilitate offenses, such as phones, wallets, or accounts. Courts can seize instrumentalities along with proceeds. This improves the chances of stopping further harm.
• Laundering diagram — Refers to visual records that map how funds move across wallets, accounts, and businesses. Such diagrams can prove intent and planning. Clear flow charts also help courts order forfeiture.
• Luxury asset spending — Describes purchases of yachts, jets, artwork, or high-end goods with criminal proceeds. Large items create traceable trails and seizure targets. These assets may later fund partial victim compensation.
• Money laundering conspiracy — Names an agreement to conceal the source, ownership, or control of criminal proceeds. Common methods include layering through wallets, companies, or gambling sites. Conspiracy charges can reach organizers and facilitators.
• National Security Division (NSD) — Identifies the DOJ unit that handles threats with international or systemic impact. NSD participation signals significant geopolitical or infrastructure risks. Their tools include sanctions coordination and specialized expertise.
• Phone farm — Describes racks of devices and SIM cards used to send messages, verify accounts, or run apps at scale. Phone farms enable mass outreach in investment and romance scams. Seizure of these systems can slow victim acquisition.
• Pig-butchering scam — Refers to romance-styled investment fraud where trust is cultivated before large deposits are requested. Offenders use scripts, screenshots, and fake platforms to simulate profits. Losses often spike after “fees” or “taxes” are demanded for withdrawal.
• Political protection — Describes influence used to shield criminal operations from scrutiny. Bribes, favors, or ties to officials can delay raids and arrests. International pressure and sanctions can counter this shield.
• Presumption of innocence — Means the accused is considered not guilty unless proven guilty in court. This standard protects fair trials while asset cases proceed separately. Victims can follow civil recovery even as the criminal case advances.
• Private keys — Identify the secret codes that control access to specific crypto wallets. Whoever holds the keys controls the assets. Lawful seizure often hinges on obtaining these keys or custodial cooperation.
• Sanctions designation — Refers to government restrictions placed on people or entities that aid crime or corruption. Sanctions can freeze assets and bar transactions through compliant banks and platforms. Public lists help victims and firms avoid further payments to flagged parties.
• Seizure warrant — Names a court order that authorizes law enforcement to take custody of property linked to crime. In crypto cases, warrants can move assets into government-controlled wallets. Early action can prevent dissipation.
• Spraying (crypto) — Describes the rapid disaggregation of funds across many addresses to break traceability. Offenders aim to outrun analytics and exchange controls. Linked timing and repeated patterns can still reveal the trail.
• Task force (joint) — Identifies a multi-agency team that combines expertise and jurisdiction. Task forces share data faster and coordinate arrests and seizures. Their structure improves support for victims across borders.
• Transnational criminal organization (TCO) — Describes a group that operates across countries with structured roles and financial systems. TCO status brings stronger tools such as sanctions and coordinated forfeiture. This increases pressure on leadership and facilitators.
• Unhosted wallet — Refers to a crypto wallet where a person holds the private keys rather than an exchange. Unhosted wallets reduce third-party control and complicate freezes. Tracing still follows funds when they touch hosted services.
• Virtual Asset Unit (FBI) — Names the specialized team that supports crypto-related investigations. The unit helps trace transactions, prepare seizures, and liaise with exchanges. Their involvement often improves the odds of securing assets.
• Wire fraud conspiracy — Describes an agreement to use electronic communications to obtain money by false pretenses. Messages, platforms, and transfers establish the wire element. This charge frequently anchors large cyber-enabled fraud cases.

Please Rate This Article

Please Leave Us Your Comment
Also, tell us of any topics we might have missed.

Thank you for your comment. You may receive an email to follow up. We never share your data with marketers.

-/ 30 /-

What do you think about this?
Please share your thoughts in a comment above!