DOJ Seizes $15 Billion in Bitcoin from Cambodian Scammers Who Used Slave Labor to Trick Victims
The DOJ has seized approximately $15 billion in bitcoin from a massive Cambodia-based “pig butchery” fraud operation. The scammers allegedly ran forced labor camps in Cambodia where slaves were forced to lure individuals into their scam.
CNBC reports that the DOJ made history by seizing approximately $15 billion worth of bitcoin from cryptocurrency wallets belonging to a man who allegedly ran a massive fraudulent “pig butchery” operation in Cambodia. This seizure constitutes the largest forfeiture action ever undertaken by the DOJ.
Breitbart News has previously reported on large butchery scams, which often target Americans attracted to crypto riches:
Pig butchery scams often start with conversations about investments, usually involving cryptocurrencies, and are initiated by someone posing as a lover, financial advisor, or successful investor. Scammers initially allow withdrawals after the victim deposits money, but eventually lock the account and require a deposit of up to 20% of the balance in order to unlock it. The money is never returned, even after the deposit is made, and the scammers keep finding new excuses for the victim to send more money.
The scam’s name comes from the scam’s life cycle, during which targets are first “fattened” and then “slaughtered” for as much money as the scammers can make.
According to the unsealed indictment from federal court in Brooklyn, New York, the alleged scammer, Chen Zhi, also known as “Vincent,” was charged with wire fraud conspiracy and money laundering conspiracy. The 38-year-old immigrant of Chinese origin, still on the run, risks up to 40 years in prison if found guilty.
Prosecutors identified Zhi as the founder and chairman of Prince Holding Group, a multinational conglomerate based in Cambodia. The Prince Group is said to have grown in secret, becoming one of Asia’s largest transnational criminal organizations, operating 10 fraud complexes in Cambodia.
Brooklyn U.S. Attorney Joseph Nocella said Zhi “led one of the largest investment fraud operations in history, fueling an illicit industry that reached epidemic proportions.” The scams orchestrated by the Prince Group have caused billions of dollars in losses and untold suffering to victims around the world, including in New York.
The Prince Group, with businesses in more than 30 countries, conducted fraudulent forced labor operations across Cambodia. Individuals held against their will in these complexes engaged in fraudulent cryptocurrency investment schemes known as “pig butchery” scams. These scams lured people contacted via social media and messaging apps into transferring cryptocurrencies to accounts controlled by the system, with false promises of profitable investments. In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators.
Prosecutors said hundreds of people were trafficked and forced to work at the fraudulent complexes, often under threat of violence. Zhi and a network of senior Prince Group executives allegedly used their political influence in several countries to protect their criminal enterprise and paid bribes to officials to avoid actions by law enforcement authorities targeting the scheme.
The Treasury Department, in a parallel action, designated Prince Group as a transnational criminal organization and announced sanctions against Zhi and more than 100 associated individuals and entities for their roles in the alleged illicit activity.
Learn more about CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
