DOJ Seizes $15 Billion in Bitcoin from Chen Zhi
The U.S. Department of Justice (DOJ) announced a civil forfeiture action against Chen Zhi. He is the founder and chairman of the Prince Holding Group. The DOJ seized approximately 127,271 Bitcoin, valued at about $15 billion, currently held in U.S. custody.
This is the largest cryptocurrency seizure in the Department’s history. The case involves a transnational criminal enterprise that ran forced-labor camps in Cambodia. These camps were used to carry out large-scale cryptocurrency investment fraud schemes.
Chen Zhi Accused of Leading Cyber-Fraud Scheme
According to the official DOJ announcement, Chen Zhi was the alleged mastermind behind the fraud. Since 2015, the Prince Group reportedly trafficked hundreds of workers into forced-labor camps in Cambodia.
These workers were forced to run “pig butchering” scams. The scams involved building long-term trust with victims through messaging or social media. Victims were then convinced to transfer cryptocurrency into fake investment accounts.
The funds were stolen, causing billions in losses worldwide, including in the U.S. The workers were coerced into committing fraud under threat of violence.
Cryptocurrency Laundering and Sanctions
The DOJ complaint states that Chen Zhi’s associates used laundering techniques like “spraying” and “funneling.” These methods moved large amounts of cryptocurrency across many wallets to hide illicit profits.
A U.S. Attorney’s Office spokesperson said, “This indictment and historic forfeiture reflect our commitment to using every tool to ensure such crimes do not pay.”
In a related move, the Department of the Treasury designated the Prince Group as a transnational criminal organization. It also imposed sanctions on Chen Zhi and several related individuals and entities for their roles in the fraud.
