An indictment has been unsealed in federal court in Brooklyn, New York, charging Chen Zhi, also known as Vincent, with wire fraud conspiracy and money laundering conspiracy. Chen Zhi, a UK and Cambodian national, is the founder and chairman of Prince Holding Group (Prince Group), a multinational conglomerate based in Cambodia. According to the U.S. Department of Justice, Prince Group operated forced-labor scam compounds across Cambodia where individuals were held against their will and compelled to participate in fraudulent cryptocurrency investment schemes known as “pig butchering” scams. These activities reportedly resulted in billions of dollars being stolen from victims in the United States and globally. Chen Zhi is currently at large.
In addition to the indictment, the U.S. Attorney’s Office for the Eastern District of New York and the Justice Department’s National Security Division filed a civil forfeiture complaint against approximately 127,271 Bitcoin, valued at around $15 billion. The funds are alleged to be proceeds and instrumentalities of the fraud and money laundering schemes led by Chen Zhi and were previously stored in unhosted cryptocurrency wallets controlled by him. The U.S. government currently holds these assets. The Justice Department states that this is the largest forfeiture action in its history.
The indictment and forfeiture complaint allege that since about 2015, Chen Zhi has led Prince Group, which operates dozens of businesses in over 30 countries and is publicly focused on real estate development, financial services, and consumer services. However, prosecutors allege that under Chen Zhi’s direction, Prince Group secretly became one of Asia’s largest transnational criminal organizations, generating significant profits from scam operations in Cambodia.
Further details can be found on the Department of Justice’s website.