The US Department of Justice has announced its largest-ever crypto seizure, targeting a vast criminal organization tied to forced labor and digital fraud.
Key Takeaways
- The DOJ seized approximately 127,271 Bitcoin, worth $15 billion, from unhosted wallets controlled by Prince Group chairman Chen Zhi.
- The Prince Group operated scam compounds in Cambodia using forced labor to execute crypto investment scams, often referred to as “pig butchering.”
- Sanctions were jointly imposed by the US Treasury and the UK’s Foreign Office against 146 individuals and entities connected to the criminal network.
- Chen Zhi, who remains at large, faces indictments for wire fraud and money laundering conspiracy linked to one of the largest cyber-fraud networks in history.
What Happened?
In a sweeping international crackdown, US authorities have indicted Cambodian businessman Chen Zhi for running a transnational criminal empire that trafficked individuals to carry out massive cryptocurrency scams. These operations, under the Prince Group conglomerate, defrauded victims worldwide of billions and used the stolen crypto for mining, luxury purchases, and laundering. The DOJ has seized $15 billion in Bitcoin linked to these crimes, marking the largest crypto forfeiture in US history.
Chairman of Prince Group Indicted for Operating Cambodian Forced Labor Scam Compounds Engaged in Cryptocurrency Fraud Schemes https://t.co/y2c7tiShgH @NewYorkFBI pic.twitter.com/8Nde99bQpu
— FBI (@FBI) October 14, 2025
A Global Financial Crime Empire
The Prince Group, founded by Chen Zhi, was once known for its sprawling business ventures across Asia. However, US prosecutors have unmasked the conglomerate as a front for one of the largest and most brutal cybercrime enterprises in recent memory.
- Since at least 2015, the Prince Group operated scam compounds across Cambodia, using trafficked individuals forced to work under violent conditions.
- These compounds were described as “prison-like,” equipped with barbed wire, dormitories, and torture rooms.
- Victims, lured through social media and dating apps, were groomed and convinced to transfer cryptocurrency to fraudulent investment schemes.
- In truth, their funds were stolen and funneled through complex laundering operations, involving online gambling, shell businesses, and a Laos-based crypto mining operation called Warp Data Technology Lao Sole Co.
Massive Sanctions and Financial Penalties
In a coordinated action on October 14, 2025, multiple US and UK government agencies took unprecedented steps:
- The US Treasury’s OFAC sanctioned 146 individuals and entities, designating the Prince Group as a transnational criminal organization.
- The UK government also imposed sanctions against connected entities, including the Byex Exchange and Jin Bei Group, which ran online gambling platforms and Telegram-based scam marketplaces.
- The DOJ unsealed a criminal indictment and launched a civil forfeiture complaint to seize assets from Chen Zhi and his network.
Elliptic, a blockchain analytics firm, identified Bitcoin addresses holding over $2.3 billion, including one not listed in official sanctions that contains another $560 million. The seized crypto was mined between 2021 and 2022 and had largely remained dormant.
Brutality Behind the Scenes
According to court filings, Chen Zhi:
- Personally directed violent tactics within scam compounds, ordering beatings of detained workers.
- Maintained ledgers detailing which scams were conducted from which rooms, as well as “phone farms” used to target victims en masse.
- Held images and diagrams documenting the laundering process and the brutal conditions inside the labor camps.
- Used proceeds to purchase luxury assets, including yachts, watches, private jets, vacation homes, and a Picasso painting.
The Prince Group also leveraged political connections across countries, paying bribes to officials to protect operations from law enforcement actions.
CoinLaw’s Takeaway
I’ve covered a lot of stories about fraud, but this one really hits hard. What makes the Prince Group case stand out is not just the staggering amount of stolen Bitcoin, but the level of cruelty and deception behind it all. We’re talking about modern-day slavery being used to power crypto scams. The fraud was global, but the pain was personal for thousands of victims. In my experience, enforcement actions like this don’t happen often, and they send a huge signal to bad actors in crypto. This was a digital empire built on trust and manipulation, and finally, it’s starting to crumble. If you’re in crypto, you must be cautious, verify every platform you deal with, and know that not all losses are accidental. Sometimes, there’s a dark machine behind the screen.
