By Key Points
- US seizes 127,000+ BTC in crypto fraud operation.
- Cambodian tycoon Chen Zhi charged in global scam.
- Prince Group labeled as a criminal organization.
- Victims targeted through fake crypto investments.
In a historic move, US prosecutors have exposed what they’re calling the biggest crypto fraud case in history. Cambodian billionaire Chen Zhi, head of Prince Holding Group, is at the center of a multi-billion dollar digital scam that spanned several countries and left thousands of victims.
Chairman of Prince Group Indicted for Operating Cambodian Forced Labor Scam Compounds Engaged in Cryptocurrency Fraud Schemes https://t.co/y2c7tiShgH @NewYorkFBI pic.twitter.com/8Nde99bQpu
— FBI (@FBI) October 14, 2025
Authorities seized over 127,000 Bitcoins, currently valued at $15 billion, from digital wallets believed to be controlled by Chen and his associates.
These assets were traced back to years of illegal activity involving “pig butchering scams,” a growing form of crypto fraud where victims are manipulated into investing in fake cryptocurrency platforms.
Interestingly, despite ongoing crackdowns like this, investor confidence in Bitcoin has dropped to multi-year lows, raising concerns about market stability and user trust in digital assets.
The fraud operation was not just digital, it was physical and brutal. Workers were trafficked into compounds in Cambodia and forced to operate fake online profiles, acting as romantic or financial contacts to lure unsuspecting users into the scheme.
What’s most interesting is wallet addresses listed in the US government $14B (127K BTC) seizure previously were named in a Milky Sad report ~2 years ago for having vulnerable private keys and now the USG says they have custody of them. https://t.co/sHNwMXhLKH pic.twitter.com/icLWKU33kC
— ZachXBT (@zachxbt) October 14, 2025
These workers were kept under constant watch, with reports of violent enforcement methods being used to maintain control.
Prosecutors noted that these scams were run at industrial scale. Some compounds housed massive “phone farms” filled with thousands of devices sending automated messages through social media apps and crypto trading platforms.
Many of these activities were allegedly connected to Prince Holding Group’s casino and real estate operations.
This crypto fraud network went to great lengths to disguise its financial trails. Shell companies, crypto mining rigs, and online gambling platforms were used to hide the origin and movement of stolen funds. According to the Department of Justice, it was an “orchestrated ecosystem of deception.”
If found and convicted, Chen Zhi faces up to 40 years in prison for wire fraud and money laundering conspiracy. He is currently at large.
Global Sanctions Target Crypto Fraud Empire
The US Treasury Department has stepped in to deliver an even bigger blow. In coordination with UK officials, they labeled Prince Holding Group a transnational criminal organization, accusing it of playing a central role in global crypto fraud schemes.
The move effectively cuts off the conglomerate from US financial markets. UK regulators also froze over $172 million in assets tied to Chen, including a $16 million property in London. These efforts are part of a wider global push to limit the reach of large-scale crypto fraud networks.
The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes. Treasury is taking action to protect Americans by cracking down on foreign scammers. Working in close coordination with federal law enforcement and… https://t.co/oCbqtMJkAj
— Treasury Secretary Scott Bessent (@SecScottBessent) October 14, 2025
“Transnational crypto fraud has cost Americans billions,” said US Treasury Secretary Scott Bessent, “often wiping out life savings within minutes.”
Authorities believe Prince Holding Group used its legitimate-looking businesses, spanning real estate, finance, and tech, to launder dirty money across more than 30 countries.
Funds were reportedly moved through a complex web of crypto wallets and used to purchase luxury goods like private jets, super yachts, and fine art.
The Justice Department also revealed that it plans to use some of the seized bitcoin to compensate victims, pending court approval. If successful, it could be one of the largest restitution efforts in crypto fraud history.
Even as efforts continue globally to dismantle such networks, some initiatives still fail to move allocated crypto funds, showing the gap between enforcement and effective execution.
Top executives in Chen’s network are accused of bribing foreign officials and using sophisticated crypto transfers to dodge international regulations. This kind of crypto fraud goes far beyond phishing scams—it’s deeply embedded in global finance.
Crypto Fraud Networks Are Spreading Across Southeast Asia
This case is not an isolated incident. In fact, it exposes how rapidly crypto fraud is spreading across Southeast Asia.
According to the United Nations, over 100,000 individuals in Cambodia have been forced to work in similar scam operations. These scams are often backed by powerful business figures and involve well-funded, highly coordinated criminal enterprises.
Regions like Myanmar, Laos, and the Philippines are also emerging as hubs for crypto-linked fraud. What makes this case stand out is the scale, the brutality, and the direct involvement of a known business tycoon with international assets.
Jacob Daniel Sims, a researcher at Harvard University’s Asia Center, said the US crackdown “changes the risk calculus” for global investors and financial institutions who do business with elites in the region.
He noted that it represents a rare example of governments taking strong action against organized crypto fraud networks led by influential figures.
Even as the investigation continues, Prince Holding Group maintains its public image, claiming to operate over 100 businesses in real estate, finance, and tourism. Cambodian officials have not commented publicly on the indictment.
Studies from the University of Texas show that global losses from pig butchering scams exceeded $75 billion from 2020 to 2024. In 2024 alone, the FBI recorded $5.8 billion in US crypto investment fraud losses, highlighting the massive scale of the problem.
The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes. Treasury is taking action to protect Americans by cracking down on foreign scammers. Working in close coordination with federal law enforcement and… https://t.co/oCbqtMJkAj
— Treasury Secretary Scott Bessent (@SecScottBessent) October 14, 2025
This isn’t the only challenge facing the crypto world today. Major platforms like Coinbase are tracking regional trading trends to understand capital flows better, and DEX platforms like SNX are pivoting toward perpetuals to stay competitive in a market filled with uncertainty.
As the holiday season approaches, even retail traders are gearing up for crypto’s Black Friday deals, but cases like this serve as a stark reminder that not every opportunity in the digital asset space is legit.
This case could mark a turning point. It sends a message that crypto fraud, no matter how big or well-hidden, can and will be confronted by international law enforcement.
What is your reaction?
