Who Is Chen Zhi? Crypto Fraud Case Linked to Bitcoin Seizure and International Scandal

The U.S. authorities revealed one of the largest financial fraud cases in history, seizing $15 billion worth of Bitcoin (BTC) connected to an alleged Chen Zhi. 

The case has drawn global attention, not only because of its massive financial scale but also due to allegations of forced labor, money laundering, and deep political ties in Southeast Asia.

Federal prosecutors in Brooklyn have indicted Chen Zhi, the 37-year-old founder and chairman of Prince Holding Group, one of Cambodia’s largest conglomerates. 

The charges against him include wire fraud and money laundering, with prosecutors alleging he oversaw a vast criminal network that exploited victims across multiple continents through deceptive cryptocurrency investment schemes.

The $15 Billion Bitcoin Seizure

According to the U.S. Department of Justice, the seizure marks the largest forfeiture of digital assets in U.S. history. The confiscated funds are linked to a fraudulent operation that federal authorities describe as a global scam built on deception and coercion.

“By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool to defend victims and recover stolen assets,” said Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche in a joint statement.

Despite the historic crackdown, Chen Zhi remains at large. If convicted, he faces up to 40 years in prison. 

The FBI Director, Kash Patel, described the case as “one of the largest financial fraud takedowns in history,” adding that Chen allegedly managed a global network that laundered billions while exploiting vulnerable individuals for profit.

Read also: Telegram Scam Channels Surge in 2025: Pavel Durov’s Response

Inside the Chen Zhi Crypto Fraud Network

Prosecutors allege that Chen Zhi and his associates orchestrated a “pig butchering scam”, a term used for fraudulent investment schemes in which scammers gain victims’ trust over time before convincing them to invest in fake cryptocurrency opportunities.

Victims were lured through social media and messaging platforms, persuaded to transfer their digital assets under the belief they were participating in legitimate investment ventures. 

Instead, their money was siphoned, laundered, and used for luxury goods, entertainment, and political influence.

Read also: How to Avoid Crypto Scams: Stay Away from BEEG Untrusted Sites

The Justice Department stated that the Chen Zhi bitcoin seizure resulted from an intricate network of shell companies and accounts designed to obscure the flow of illicit funds. 

U.S. officials say Chen’s conglomerate, Prince Holding Group, had direct links to this money laundering operation.

Allegations of Human Trafficking and Forced Labor

One of the most disturbing aspects of the case involves allegations of human trafficking. 

Prosecutors claim that Chen’s criminal organization operated “forced labor compounds” in Cambodia, where hundreds of workers were coerced into participating in online scams.

According to the investigation, the compounds were surrounded by high walls and barbed wire, resembling detention centers more than workplaces. 

The victims were reportedly trafficked from neighboring countries and forced to work under violent conditions to sustain the criminal network.

Mark Taylor, a human rights expert formerly working with Winrock International, said Chen was “embedded in Cambodia’s elite and well protected by the government,” which made enforcement difficult. He added that Cambodia had become a regional hub for online scams and cryptocurrency laundering.

Read also: Brute Crypto Attack Tactics Exposed, Here’s How to Stay Safe!

The Role of Prince Holding Group

The Prince Holding Group, which presents itself as a major player in real estate, finance, and consumer services, has long been considered one of Cambodia’s most influential corporations. It has also claimed to engage in philanthropic activities.

However, following the U.S. government’s announcement, the U.S. Treasury Department designated the company a transnational criminal organization. It also imposed sanctions on 146 affiliated entities linked to Chen Zhi’s alleged operations.

Despite the severe allegations, Prince Holding Group has denied involvement in any scam-related activity and has not publicly commented on the recent seizure or indictment.

Read also: Should Women Be Stopped from Crypto? Unpacking the Myths and Realities of Gender in Blockchain

Cambodia’s Growing Role in Crypto Scams

The Chen Zhi scam case has brought renewed scrutiny to Cambodia’s role as a center for online fraud operations. According to Cyber Scam Monitor, an independent research group, there are more than 200 online scam centers and casinos currently operating in Cambodia.

These operations often involve complex cross-border networks, with funds laundered through banks and real estate projects before being converted into cryptocurrency. 

The U.S. Treasury noted that Cambodia has become a money laundering hub for the region, partly due to weak enforcement and political protection for powerful figures.

Read also: US Sanctions North Korea Over Crypto Theft

What Happens Next

As Chen Zhi remains a fugitive, international law enforcement agencies are coordinating efforts to locate him and freeze additional assets tied to the Chen Zhi bitcoin seizure. 

The U.S. Department of Justice confirmed that investigations are ongoing in collaboration with the U.K., Interpol, and several Southeast Asian governments.

If convicted, Chen could face decades in prison, marking one of the most significant convictions in the history of cryptocurrency-related crimes.

The case serves as a stark reminder of how large-scale crypto fraud can intertwine with corruption, human exploitation, and international politics, illustrating the darker side of the digital asset boom.

Find other interesting articles on Bitrue blog! You can also directly buy selected assets on Bitrue by registering here!

FAQ

Who is Chen Zhi?

Chen Zhi, also known as Chen Zhi, is the founder and chairman of Prince Holding Group in Cambodia. He has been accused of running a global crypto fraud and money laundering operation involving billions of dollars.

What is the Chen Zhi crypto fraud case about?

The Chen Zhi crypto fraud case involves allegations that Chen ran a worldwide scam network built on forced labor, using deceptive cryptocurrency investment schemes to defraud victims.

What is the Chen Zhi bitcoin seizure?

The Chen Zhi bitcoin seizure refers to the U.S. government’s confiscation of $15 billion worth of bitcoin connected to Chen’s alleged fraudulent operations.

Is Chen Zhi in custody?

No. According to the Justice Department, Chen Zhi remains at large. Authorities are coordinating internationally to locate him.

Why is Cambodia involved in crypto scams?

Experts believe Cambodia has become a hub for online scams and crypto laundering because of weak regulations, corruption, and the protection of influential business figures.