U.S. authorities have charged Chen Zhi, the chairman of Cambodia’s Prince Holding Group, with wire fraud and money laundering conspiracy, seizing more than $14 billion in bitcoin in what’s being called one of the largest investment fraud operations in history. The indictment, unsealed by Brooklyn federal prosecutors, accuses Chen of exploiting forced labor to operate a vast “pig butchering” scam that at one point was reportedly pulling in $30 million a day. The scam, which preys on would-be investors by building fake rapport online before enticing them to transfer cryptocurrency, has cost Americans at least $10 billion in the past year alone.
In a concerted effort, both U.S. and British authorities have imposed sanctions on Chen’s company, declaring it a transnational criminal organization. The Prince Holding Group, which operates in real estate development and financial services, is also being investigated by Chinese authorities for cyber scams and money laundering. Prosecutors allege that Chen, a Chinese native also known as “Vincent,” sanctioned violence against workers, authorized bribes to foreign officials, and laundered illicit profits through his other businesses, including online gambling and cryptocurrency mining.
According to the indictment, Prince Holding Group built at least ten compounds in Cambodia where workers, often migrants held against their will, were forced to operate the scam. These facilities, described as forced labor camps, were surrounded by high walls and barbed wire. Lured by promises of high-paying jobs in tech, the victims were held captive, isolated, and sometimes severely beaten. Photographs included in the indictment show a man with a bloody gash on his face and others with red lash marks on their bodies. Prosecutors noted that Chen himself approved of a beating, with the caution that the victim shouldn’t be “beaten to death.”
The money scammed from victims was allegedly funneled into other Prince Holding Group businesses and shell companies. Instead of being invested, the funds were used to finance a lavish lifestyle for Chen and his associates. The indictment details the purchase of luxury items like watches, vacation homes, rare artwork, and even a Rolex watch for an executive’s spouse. With Chen at large, the U.S. government hopes that if he is convicted, the seized 127,271 bitcoins could be used to repay victims, though the value of the coins will fluctuate.
Experts believe these actions, while not instantly ending the scam economy, will significantly change the risk calculus for global financial institutions and investors. Jacob Daniel Sims, a transnational crime expert at Harvard University, describes Prince Holding Group as an “essential part of the scaffolding that makes global cyber-scamming possible” and Chen as a “central pillar” of a criminal economy intertwined with Cambodia’s ruling regime. Chen, who has served as an adviser to Cambodian Prime Minister Hun Manet and his father, has strong ties to the country’s elite. By targeting such a high-profile figure, the sanctions send a clear message that supporting this type of elite crime is a risky strategy.
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