Authorities seize billion in Bitcoin and indict leader of crypto fraud linked to forced labor camps in Cambodia.

The U.S. government has recently seized assets valued at billion in Bitcoin from Chen Zhi, an alleged orchestrator of a vast cryptocurrency fraud scheme. Chen, who is also known as “Vincent,” is the founder and chairman of the Prince Holding Group in Cambodia. As outlined by federal prosecutors in Brooklyn, he stands accused of orchestrating forced labor camps where migrant workers were allegedly coerced into perpetrating fraudulent “pig-butchering” scams against victims worldwide.

On Tuesday, federal authorities announced the indictment against Chen, who, at 37 years old, is currently at large. He faces serious charges including conspiracy to commit wire fraud and money laundering. The severity of the allegations has drawn significant attention as they reveal a troubling nexus between human trafficking and sophisticated financial fraud.

According to court documents, the Prince Holding Group employed thousands of trafficked individuals who sought employment in Cambodia. These workers were reportedly confined to compounds designed to restrict their freedom, characterized by extensive dormitory-style living arrangements shielded by high walls and barbed wire. The working conditions were alleged to include severe physical abuse as a means of control, with Chen purportedly approving the use of violence to maintain order among the labor force.

Federal investigators have detailed how Chen’s organization operated extensive networks of “phone farms.” These farms utilized a staggering array of devices, including one with 1,250 cell phones capable of accessing up to 76,000 social media accounts. Through these platforms, scammers would reach out to potential victims, often under the pretext of having the wrong phone number. Following initial contact, these perpetrators would engage the victims in conversations that led to false investment opportunities, ultimately trapping them in schemes designed to siphon off their money.

The indictment asserts that Chen and his associates also laundered approximately million of stolen funds through an intricate web of shell companies. This operation involved over 250 victims, with significant financial ramifications felt across various regions, including New York.

U.S. Attorney Joseph Nocella stated that this case exemplifies one of the largest investment fraud operations in history. The fallout from the Prince Group’s scams has created substantial financial losses and inflicted misery on countless victims worldwide, particularly affecting vulnerable individuals exploited in Cambodia. This case highlights the troubling intersection of technology-driven fraud and human trafficking, as authorities continue to address the growing prevalence of such crimes.

As investigations continue, the potential impact on global cryptocurrency regulations and human trafficking awareness remains a topic of great concern. The seizure of these extensive digital assets marks a significant effort by law enforcement to combat such exploitative schemes and protect victims suffering from abuse and deception.

The authorities remain vigilant, urging individuals to exercise caution and due diligence in online investments to safeguard against emerging scams further fueled by advances in technology.