In a significant operation targeting global cryptocurrency scams, the US government has seized over $14 billion worth of bitcoin (Ksh2.17 trillion) as part of a crackdown on a sprawling fraud network. The operation centers around Chen Zhi, a UK and Cambodian national accused of orchestrating one of the largest cryptocurrency scams in history.
Zhi, the founder of the Prince Group a multi-national business empire based in Cambodia—has been charged with running a wire-fraud conspiracy and a money laundering scheme. The US authorities have charged him in New York, while UK authorities have frozen assets linked to his network, including high-value properties in London. This move comes after a joint investigation by both the US and UK governments, which also saw the imposition of sanctions on Zhi’s businesses.
The seizure of approximately 127,271 bitcoin marks the largest-ever confiscation of cryptocurrency by US authorities. The Prince Group, operating across several countries, allegedly used online platforms to deceive victims into transferring cryptocurrency based on promises of profitable investments. Many of these individuals were led to believe their funds would yield returns, only to find they had been scammed.
Zhi’s operations spanned multiple scam compounds in Cambodia, where workers were reportedly trafficked and forced to carry out fraudulent activities, such as running call centers to contact victims. These compounds were designed specifically to maximize the number of people targeted. In some cases, workers were coerced into using thousands of mobile phones to run scams through social media.
The US Department of Justice has described the Prince Group as one of the largest transnational criminal organizations operating in the region. Prosecutors have also revealed that proceeds from the scam were used to fund lavish lifestyles, including private jets and expensive art, such as a Picasso painting bought in New York.
As part of the global effort to dismantle the organization, the UK Foreign Office has also imposed sanctions on Zhi and his associates, locking them out of the UK financial system. This includes freezing assets linked to the Prince Group, which is believed to have used illicit proceeds to buy properties and casinos, laundering the funds through various businesses.
Authorities emphasize the importance of these actions in protecting vulnerable individuals from exploitation and preventing the flow of illicit money into legitimate economies. If convicted, Zhi faces up to 40 years in prison.
