The Justice Department has seized $15 billion in bitcoin from a global “pig butchering” fraud operation that a Chinese-born businessman orchestrated with forced-labor camps in Cambodia — using the ill-gotten gains to snap up artwork, luxury watches and pricey real estate.
Prosecutors in Brooklyn federal court on Tuesday charged 37-year-old Chen “Vincent” Zhi, the founder and chairman of Prince Holding Group — with alleged wire fraud, bribery, and money laundering conspiracy stretching over the past decade.
Authorities allege Chen directed “phone farms” in Cambodia where trafficked workers were forced to execute what the DOJ called “pig butchering” — slang for a scam that lures “fattened up” victims online with pleas for financial help, fake romantic relationships or promises of lucrative crypto investments.
The indictment and forfeiture complaint allege that since late 2014, Chen built Prince Group — a firm purportedly set up to invest in real estate, finance, and consumer services across more than 30 countries — into one of Asia’s largest criminal organizations.
Proceeds funded luxury items like yachts, jets, watches, and a Picasso painting bought in New York.
One Brooklyn-based network laundered millions from over 250 US victims for Prince Group.
The British government also said that it would move to hit the alleged fraudster with sanctions.
Frozen properties include a $16 million London mansion and a $126 million office block in the heart of London’s financial district.
Chen built trust with victims online before convincing them to transfer crypto funds that were then stolen and laundered, the DOJ claimed.
At one point his company was raking in as much as $30 million a day, according to court documents.
Hidden operations included scam compounds with high walls, barbed wire and forced labor, where workers ran the mega-billion-dollar fraud under threat of violence, the DOJ alleged.
United States District Court Eastern District Of New York
Chen allegedly managed the compounds, tracking profits and schemes, and possessed images of beatings and torture.
He spoke to his associates about punishing those who “caused trouble” but stressed that laborers should “not be beaten to death.”
Scammers often contacted victims via messaging apps or social media, promising investment returns, the indictment alleged.
The bitcoin, totaling about 127,271 coins, was held in unhosted wallets controlled by Chen and is now in US custody.
The alleged fraudster remains at large and could face up to 40 years in prison if convicted.
The price of Bitcoin stood at $112,327 just before noon on Tuesday.
The Post has approached a spokesman for Chen’s Prince Holding Group for comment.
A Prince associate was also involved “in procuring millions of mobile telephone numbers and account passwords from an illicit online marketplace,” according to the DOJ.
Chen and executives allegedly bribed foreign officials and used political influence to shield operations, laundered money via gambling and mining businesses, according to the indictment, and boasted of “no cost” profits from stolen funds.
The announcement came as the Treasury designated Prince Group as “a transnational criminal organization and announced sanctions against Chen and his associates.
“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” said Joseph Nocella, Jr., United States Attorney for the Eastern District of New York.”
The FBI’s Christopher G. Raia, the assistant director in charge of the probe, accused Chen of “forcing thousands to serve as trapped accomplices and targeting countless others for their wallets.”
“By leveraging his co-conspirators and political influence, this alleged operation plagued all corners of the globe and evaded law enforcement detection for years,” he added, vowing that the Feds would “eradicate all unlawful revenue streams fueling criminal activity no matter where they are in the world.”
According to the FBI’s 2024 Internet Crime Report, cryptocurrency investment fraud caused more than $5.8 billion in reported losses last year alone.
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