$14B Crypto Scam Exposed: US & UK Crack Down on Southeast Asian Crime Network!

A massive crypto scandal is shaking the global digital finance scene. The United States and the United Kingdom have charged Cambodian businessman Chen Zhi, chairman of Prince Holding Group, in a $14 billion bitcoin scam that allegedly used forced labor and fake investments to defraud thousands of victims.

Authorities have seized over 127,000 bitcoins, making this one of the largest crypto seizures in history.

The case reveals the dark side of Southeast Asia’s booming digital economy, where cybercrime networks, human trafficking, and high-level corruption intersect.

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Key Takeaways

1. Over $14 billion in bitcoin seized from a scam linked to Cambodia’s Prince Holding Group.

2. Chen Zhi and associates accused of forced labor, wire fraud, and laundering illicit funds through crypto.

3. US and UK sanctions mark a turning point in the global crackdown on transnational crypto crimes.

How the $14B Crypto Scam Was Exposed

The US Department of Justice and British authorities revealed that Prince Holding Group, led by Chen Zhi, ran a massive “pig butchering” investment scam, an online scheme where victims are tricked into fake crypto opportunities.

Prosecutors said Chen’s network earned up to $30 million per day by exploiting laborers forced to contact potential investors through fake social media profiles.

The Mastermind Behind the Operation

Chen, a 38-year-old Chinese national also known as “Vincent,” was accused of building a cyberfraud empire stretching across Southeast Asia.

His conglomerate, Prince Holding Group, operates in real estate, finance, gambling, and crypto mining industries, allegedly used to launder billions.

According to the US Treasury Department, Chen used profits to buy private jets, yachts, luxury homes, and even a Picasso painting.

He reportedly bribed foreign officials and maintained ties with Cambodia’s political elite, serving as an adviser to both Prime Minister Hun Manet and his father, former leader Hun Sen.

Despite facing international charges, Chen remains at large. If convicted, he could face up to 40 years in prison.

The Role of Forced Labor

Authorities discovered 10 compounds across Cambodia where workers were confined, forced to operate scam call centers, and threatened with violence.

Migrants lured by fake job ads in tech or customer service were instead trapped behind barbed wire and guarded dormitories, forced to scam investors online.

One of the compounds, tied to the Jinbei Casino Hotel, was shown in photos with beaten workers and bound captives.

US prosecutors confirmed Chen approved at least one violent punishment but warned not to kill the victim.

Read Also: AI Crypto Scams to Avoid in 2025

US and UK Launch Coordinated Crackdown

The joint action by the US Department of Justice, UK Treasury, and US Treasury’s Office of Foreign Assets Control (OFAC) represents a rare, large-scale international response to crypto-related crime.

Both governments sanctioned Prince Holding Group, labeling it a transnational criminal organization.

Sanctions and Asset Seizure

Authorities seized 127,271 bitcoins, worth over $14 billion at current market prices. The funds could be used to repay victims if approved by the court. The scale of this seizure puts it among the largest ever in crypto history.

The US also froze assets linked to Chen’s companies and restricted his associates’ access to the global banking system.

Meanwhile, the UK issued property sanctions against Chen’s network, including holdings in London real estate connected to Chinese business interests under investigation for money laundering.

Impact on Cambodia and the Region

This case highlights how Southeast Asia has become a hub for cyber fraud, often blending crypto scams, human trafficking, and organized crime.

A 2023 United Nations report estimated that over 100,000 people in Cambodia were being forced into online scams, with tens of thousands more across Myanmar, Laos, Thailand, and the Philippines.

Experts say the US and UK sanctions could finally make global banks, investors, and real estate firms more cautious when dealing with Cambodian elite money.

“These actions shrink the oxygen supply for cyberfraud networks,” said Harvard researcher Jacob Daniel Sims.

Read Also: 150+ List of Crypto Websites with Potential to be Scams

What This Means for the Future of Crypto Regulation

This scandal adds new urgency to the global effort to regulate cryptocurrencies and combat financial crimes.

The case shows how criminal organizations are evolving, using digital assets to hide, move, and multiply illicit funds.

The Message to the Industry

For policymakers and crypto exchanges, this is a warning shot. It reinforces the need for stronger Know Your Customer (KYC) and Anti-Money Laundering (AML) measures. Exchanges that fail to track illicit transactions risk being shut out of major markets.

For investors, the lesson is clear: transparency and platform credibility matter more than ever. Scams like this thrive on fake returns and emotional manipulation.

Verifying platforms, avoiding unsolicited offers, and checking regulatory licenses are now essential steps for anyone entering the crypto space.

The Human Cost Behind Digital Crime

Beyond the billions lost, this case exposes a humanitarian crisis. Thousands of victims, including laborers from across Asia, were beaten, imprisoned, or exploited to sustain Chen’s empire. The US Treasury described it as a “modern slavery operation disguised as a tech company.”

By targeting the financial heart of these scams, the US and UK hope to weaken the global web of forced labor and digital fraud that thrives under poor governance.

Read Also: Android Users Beware: Pixnapping Attack Can Steal Crypto

Conclusion

The $14B crypto scam linked to Chen Zhi and Prince Holding Group marks a pivotal moment in global financial enforcement.

The coordinated actions by the US and UK show that governments are finally catching up with crypto-driven crime networks.

While Chen remains at large, the message is clear: no one is untouchable in the digital economy.

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Whether buying, selling, or storing assets, Bitrue ensures users stay protected from the kind of scams that have rocked the crypto world.

FAQ

Who is Chen Zhi and what is he accused of?

Chen Zhi, chairman of Prince Holding Group in Cambodia, is accused of leading a $14B bitcoin scam using forced labor and online fraud networks.

How much crypto was seized by the US government?

Authorities confiscated over 127,000 bitcoins, valued at more than $14 billion, marking one of the largest seizures ever.

What methods were used in the scam?

The network used “pig butchering” scams, where fake investment relationships are built online to trick victims into transferring cryptocurrency.

Why are the US and UK involved?

Both countries imposed sanctions and filed criminal charges as part of a coordinated crackdown on transnational crypto crimes tied to Southeast Asia.

How can investors stay safe from crypto scams?

Always verify platforms, avoid unverified investment schemes, and trade only on trusted exchanges like Bitrue, which ensures transparency and strong security.

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