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U.S. Government Seizes $15 Billion in Bitcoin from Alleged Global Crypto Fraud Network
The U.S. Department of Justice (DoJ) has seized nearly $15 billion worth of bitcoin connected to a Cambodian businessman accused of operating a vast forced-labor and cryptocurrency investment fraud network. The case, one of the largest crypto-related asset seizures in history, underscores the rising overlap between cyber fraud, human trafficking, and digital finance.
Officials said the bitcoin, totaling 127,271 tokens, was linked to Chen Zhi, founder and chairman of Cambodia’s Prince Group, a conglomerate involved in real estate, finance, and other industries. The DoJ has charged Chen with wire fraud conspiracy and money laundering conspiracy.
If convicted, he faces a maximum sentence of 40 years in prison. Chen remains at large.
A Forced-Labor Network Behind Crypto Fraud
According to U.S. investigators, Chen’s organization allegedly built a global network of compounds in Cambodia that functioned as forced-labor camps. Workers were trafficked into the country and compelled under threat to run fraudulent investment operations.
These individuals were forced to contact potential victims on messaging and social media platforms, presenting themselves as legitimate financial professionals or investors. They persuaded victims to transfer digital assets to specified wallets, claiming the funds would be invested in cryptocurrencies that promised high returns.
Authorities said the claims were false, and the stolen assets were moved through layers of accounts before being consolidated into cryptocurrency wallets controlled by Chen. The DoJ said it has now secured control of those wallets, marking a significant disruption of the operation.
Scale of the Seizure and Global Reach
The recovery of 127,000 bitcoin is among the largest cryptocurrency seizures ever made by any government. The digital assets, valued at nearly $15 billion, were found in unhosted wallets — accounts not managed by a centralized exchange and accessible only through private keys. Those keys were allegedly held by Chen and his associates.
The U.S. government now holds custody of the recovered funds while investigations into related laundering activities continue. Officials are working with international partners to trace additional assets and identify remaining participants in the network.
In parallel, the United Kingdom has frozen assets belonging to Chen and his associates. Authorities there have targeted 19 properties in London, including one valued at more than $130 million. The action represents one of the most significant cross-border enforcement efforts involving digital assets.
Trafficking and Coercion Allegations
Investigators described the Prince Group compounds as large, enclosed facilities surrounded by walls and barbed wire. The sites allegedly held hundreds of trafficked workers under constant surveillance. Individuals who resisted were reportedly beaten or threatened with violence.
Evidence gathered by U.S. authorities indicates that Chen maintained direct involvement in these operations. He allegedly issued instructions to subordinates regarding the treatment of workers and expressed approval of coercive tactics used to enforce compliance.
The DoJ said that these actions constitute a combination of human trafficking, forced labor, and financial fraud, carried out under the guise of cryptocurrency investment opportunities.
How the “Pig Butchering” Scheme Worked
The fraud network employed a method often referred to as a “pig butchering” scam — a term used to describe schemes in which fraudsters build personal trust with victims before convincing them to invest large sums in fraudulent ventures.
In this case, victims were approached online and persuaded to deposit cryptocurrency into fake investment platforms. The platforms displayed fabricated profit data to encourage additional deposits. When victims attempted to withdraw funds, their access was blocked, and communication ceased.
The scale and organization of Chen’s operation set it apart from smaller scams. Authorities said the group used industrial-scale facilities and trafficked labor to manage outreach, communications, and the laundering of proceeds.
The Intersection of Human Trafficking and Financial Crime
The case highlights how global crime networks are using the structure of the cryptocurrency ecosystem to carry out human trafficking and fraud simultaneously. The ability to move value through decentralized systems without immediate oversight allows illicit actors to conceal profits while operating across borders.
In recent years, law enforcement agencies have noted a rise in similar patterns across Southeast Asia, where victims are coerced into digital fraud work. This case, however, represents one of the most extensive known examples and underscores the human cost of cyber-enabled financial crime.
Financial analysts say the incident also reflects how the global reach of fintech tools, including digital wallets and blockchain networks, can be exploited when oversight is weak. Regulators continue to push for stronger compliance frameworks around digital assets to prevent such abuse.
Prince Group and Its Global Footprint
Prince Group, headquartered in Phnom Penh, operates across more than 30 countries and maintains interests in real estate, banking, and consumer services. The company gained prominence during Cambodia’s construction boom, presenting itself as a symbol of the country’s rapid economic growth.
The DoJ alleges that elements within the group’s structure were used to support fraudulent and coercive operations. While the broader corporate entity has yet to comment, several subsidiaries are reportedly under review by regulators in multiple jurisdictions.
Analysts note that the allegations raise questions about how conglomerates with complex cross-border holdings can be used to mask illicit activity, particularly in environments with limited financial transparency.
International Cooperation and Enforcement
The U.S. seizure followed an extensive investigation that included cooperation from international law enforcement agencies. The effort involved digital forensics experts tracing blockchain transactions, identifying wallet ownership, and linking activity to entities within the Prince Group network.
Authorities in Europe and Asia contributed data on financial flows and property acquisitions, helping to locate assets tied to the operation. The global nature of the case has underscored the importance of international coordination in combating cryptocurrency-related crimes.
Officials said that both the financial recovery and the rescue of trafficked individuals represent significant progress against cross-border exploitation networks.
Financial and Regulatory Implications
The case adds to growing momentum for stricter cryptocurrency regulations aimed at identifying and disrupting money-laundering activity. Governments worldwide are accelerating the introduction of rules requiring exchanges and wallet providers to collect user identification data and report suspicious transactions.
The scale of the funds recovered also highlights the potential risks associated with unregulated crypto wallets. Unlike assets held in centralized exchanges subject to compliance checks, unhosted wallets can conceal ownership structures.
Financial experts suggest that such high-profile enforcement actions may encourage institutional investors and payment firms to adopt more robust due diligence protocols when dealing with digital assets.
Humanitarian and Social Dimensions
Beyond its financial magnitude, the case draws attention to the human impact of cyber-enabled trafficking. Victims forced to carry out online fraud were often recruited through false job offers and confined under threat.
International organizations tracking human trafficking have warned that digital scams increasingly rely on coercive labor. The convergence of technology, finance, and exploitation complicates detection, as the criminal networks involved operate simultaneously in physical and virtual spaces.
Efforts by global law enforcement agencies aim not only to recover stolen assets but also to dismantle the human supply chains behind such crimes.
Outlook
The U.S. government’s seizure of $15 billion in bitcoin linked to the alleged forced-labor scam represents a turning point in how authorities respond to the merging of financial fraud and human trafficking. The case underscores the reach of digital criminal enterprises and the evolving capacity of regulators to trace and recover assets in decentralized environments.
It also reinforces a central message for global policymakers: financial innovation must advance alongside strong enforcement and human rights protections.
As the investigation continues, the recovered bitcoin will likely remain under federal custody until court proceedings determine its final disposition. The broader impact of this case may extend well beyond asset recovery — shaping future frameworks for cryptocurrency regulation, corporate accountability, and the prevention of technology-enabled exploitation.
