Federal Authorities Seize $15 Billion in Bitcoin Linked to International Fraud Operation Involving Trafficked Workers

Federal authorities have seized approximately $15 billion worth of bitcoin connected to what prosecutors describe as one of the largest investment fraud operations in history—an elaborate scheme that allegedly exploited trafficked workers across Southeast Asia to execute "pig butchering" scams against victims worldwide. The U.S. Department of Justice unsealed an indictment on October 14 against Chen Zhi, founder and chairman of Prince Holding Group, accusing the 37-year-old businessman of orchestrating a criminal enterprise that generated billions while allegedly detaining individuals against their will in forced-labor compounds throughout Cambodia.

The scale of the operation and the alleged involvement of human trafficking have sent shockwaves through international law enforcement circles, highlighting how cryptocurrency has become a vehicle for sophisticated, transnational criminal networks. According to court documents, the fraudulent scheme capitalized on the pandemic-driven surge in cryptocurrency investments, leveraging both technological sophistication and human exploitation to maximize criminal profits.

Background and Context

The term "pig butchering" refers to a specific type of long-form investment scam in which perpetrators gradually build trust with victims—often through romantic relationships or friendships—before convincing them to invest in fraudulent cryptocurrency platforms. The practice has proliferated globally since 2020, with the FBI's Internet Crime Complaint Center reporting that Americans alone lost $9.3 billion to cryptocurrency-related fraud in 2024. What distinguishes the case against Chen Zhi is the alleged systematic use of forced labor to staff these operations, with prosecutors claiming that compounds established under Prince Holding Group's auspices housed hundreds of workers who were coerced into executing scams under threat of violence.

The investigation represents a significant coordination between U.S. authorities and international partners, reflecting the borderless nature of modern cryptocurrency-enabled crime. According to Associated Press reporting, this case emerges amid growing concern among Southeast Asian nations about the proliferation of scam compounds masquerading as legitimate businesses, particularly in Cambodia, Myanmar, and Laos—regions where regulatory oversight remains limited and corruption allegations persist.

Key Figures and Entities

Chen Zhi, the principal defendant, is described in the indictment as the architect of the sprawling fraudulent operation. According to the Department of Justice filing, Chen utilized his conglomerate, Prince Holding Group, as a legitimate business facade while simultaneously directing criminal enterprises that generated hundreds of millions in illicit proceeds. The company's portfolio reportedly includes real estate development, banking, and hospitality ventures across Southeast Asia, providing what prosecutors describe as sophisticated financial infrastructure to launder criminal proceeds.

Court documents allege that Chen and his associates lived extravagantly with the fraudulent proceeds, purchasing private jets, luxury vacation homes, and rare artwork. Meanwhile, the trafficked workers in the compounds faced brutal conditions, with prosecutors claiming they were forced to work up to 18 hours daily under constant surveillance. The Prince Holding Group has previously denied involvement in scam operations, and according to the Associated Press, did not immediately respond to requests for comment regarding the latest allegations.

Legal and Financial Mechanisms

The indictment details a complex money laundering operation designed to obscure the origin of criminal proceeds through multiple cryptocurrency transactions and shell companies. Investigators allege that fraudulent gains were converted to bitcoin and transferred through a sophisticated network of digital wallets, making detection increasingly difficult for traditional financial oversight mechanisms. The seized $15 billion in bitcoin represents only a portion of the total funds allegedly generated by the operation, with investigators suggesting that billions more may remain hidden across additional cryptocurrency addresses.

U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York emphasized the unprecedented scale of the operation in a public statement, noting that "the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions." The charges against Chen include wire fraud conspiracy and money laundering conspiracy, each carrying a potential sentence of up to 20 years, for a combined maximum of 40 years imprisonment if convicted.

International Implications and Policy Response

The case underscores significant gaps in international regulatory frameworks designed to combat cryptocurrency-enabled crimes. Despite increased sanctions and asset freezes targeting Russian oligarchs and other designated entities since 2022, investigators note that similar mechanisms have been less effective against decentralized cryptocurrency operations, particularly those based in jurisdictions with limited regulatory oversight. The alleged use of human trafficking compounds further complicates international enforcement, requiring coordination between financial crime units and human rights investigators across multiple jurisdictions.

Regulatory bodies worldwide have begun implementing stricter know-your-customer requirements for cryptocurrency exchanges, but the speed of technological innovation continues to outpace policy responses. The European Union's Markets in Crypto-Assets regulation, set to take full effect in 2025, represents the most comprehensive attempt to date to create a harmonized framework for cryptocurrency oversight. However, experts note that enforcement challenges remain significant, particularly when criminal operations span jurisdictions with varying regulatory standards and levels of corruption.

Sources

This report draws on the U.S. Department of Justice indictment and Associated Press reporting on international cryptocurrency fraud operations, as well as public statements from U.S. Attorney Joseph Nocella Jr. and FBI Internet Crime Complaint Center data published between 2023 and 2024.