Authorities in the United States and the United Kingdom have collaborated on a significant operation, seizing a staggering amount of Bitcoin valued at over $14 billion (£10.5 billion). The crackdown targeted a sophisticated cryptocurrency scam reportedly masterminded by Chen Zhi, a businessman with Cambodian and UK nationality.
Mr. Zhi has been charged in New York with conspiracy to commit wire fraud and money laundering. His businesses, operating under the banner of the Prince Group, have also been sanctioned by both governments, indicating a coordinated effort to dismantle his alleged criminal network. The UK has additionally frozen assets linked to his operations, including 19 properties in London, with one prime London office building valued at approximately £100 million ($133 million).
The US Department of Justice has hailed the operation as one of the largest financial takedowns in history and the biggest seizure of Bitcoin ever, with over 127,000 Bitcoin now in government custody. Prosecutors allege that Mr. Zhi led a “sprawling cyber-fraud empire” from Cambodia, which preyed on unsuspecting individuals online. Victims were allegedly lured with false promises of investment returns, persuaded to transfer cryptocurrency, only to have their funds stolen.
According to court documents, the Prince Group is accused of operating numerous scam compounds across Cambodia. These compounds allegedly functioned as hubs for fraudulent activities, with millions of phone numbers reportedly used to facilitate call centre scams through vast “phone farms.” These operations are said to have controlled tens of thousands of social media accounts used for these scams.
The seized proceeds from these alleged illicit activities were reportedly used by Mr. Zhi and his associates for lavish expenses, including luxury travel, private jets, and high-value art, such as a Picasso painting acquired from a New York auction. If found guilty, Mr. Zhi could face up to 40 years in prison.
The Prince Group and associated entities have also faced sanctions in the US and have been labelled as criminal organizations. UK Foreign Secretary Yvette Cooper emphasized the impact of such operations, stating that fraudsters “ruin the lives of vulnerable people and buy up London homes to store their money.” She further highlighted the collaborative effort with US allies to combat transnational threats and protect citizens.
The Prince Group’s alleged involvement in facilitating human trafficking and forced labor within these scam centers has also been noted, with reports from organizations like Amnesty International detailing the exploitative conditions faced by workers, often foreign nationals lured by false job offers.
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