The U.S. unveils the largest-ever seizure of cryptocurrency linked to global online scams, targeting a Cambodian conglomerate and its chairman, Chen Zhi. Authorities seek forfeiture of 127,000 Bitcoin tied to the operation, revealing a sophisticated transnational scam network that laundered billions through shell companies and crypto exchanges.

Chen, 38, founded Prince Holding Group as a legitimate business but transformed it into a criminal enterprise, luring workers to Cambodia with false job offers. Victims were coerced into “pig butchering” scams, where they were tricked into investing in fake crypto platforms. The funds were then laundered through shell companies and crypto operations worldwide.

Investigators traced $18 million from over 250 U.S. victims to shell entities in Brooklyn and Queens, representing just a fraction of the broader global operation channeling billions back to Cambodia. The Treasury announced sanctions on 146 people and entities tied to Prince Group, labeling them a transnational criminal organization involved in fraud, extortion, and human trafficking.

The crackdown sheds light on the intersection of human exploitation and cryptocurrency-based fraud in Southeast Asia. Previous efforts have targeted similar scams, with companies like Tether, Binance, and Coinbase assisting in freezing illicit assets. Losses from pig-butchering scams surged to $3.6 billion in 2024, highlighting the growing sophistication of these criminal networks.

Read more at Yahoo Finance: U.S. Moves to Seize Record $12B in Bitcoin from Global ‘Pig Butchering’ Scam After Joint Crackdown