The DOJ has seized about $15 billion worth of bitcoin from a massive “pig butchering” fraud operation based in Cambodia. The scammers allegedly ran forced-labor camps in Cambodia where slaves were forced to lure individuals into the scam.
CNBC reports that the DOJ has made history by seizing around $15 billion worth of bitcoin from cryptocurrency wallets owned by a man who allegedly ran a vast “pig butchering” scam operation in Cambodia. This seizure marks the largest forfeiture action ever undertaken by the DOJ.
Breitbart News has previously reported on big butchering scams, which often target Americans with the lure of crypto riches:
Pig-butchering scams frequently start with conversations about investments, usually involving cryptocurrency, and are initiated by someone posing as a romantic interest, financial advisor, or successful investor. The con artists initially permit withdrawals after the victim deposits money, but eventually lock the account and demand a deposit of up to 20 percent of the balance in order to unlock it. The money is never returned, even after the deposit is made, and the con artists keep coming up with new excuses for the victim to send more money.
The name of the scam comes from the life cycle of the con, where targets are first “fattened up” and later “butchered” for as much money as scammers can get.
According to the unsealed indictment in federal court in Brooklyn, New York, the alleged scammer, Chen Zhi, also known as “Vincent,” has been charged with wire fraud conspiracy and money laundering conspiracy. The 38-year-old Chinese-born emigre, who remains at large, faces up to 40 years in prison if convicted.
Prosecutors identified Zhi as the founder and chairman of Prince Holding Group, a multinational conglomerate based in Cambodia. The Prince Group allegedly grew in secret, becoming one of Asia’s largest transnational criminal organizations, operating 10 scam compounds in Cambodia.
Brooklyn U.S. Attorney Joseph Nocella, stated that Zhi “directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions.” The scams orchestrated by the Prince Group have caused billions of dollars in losses and untold misery to victims worldwide, including in New York.
The Prince Group, with businesses in more than 30 countries, ran forced-labor scam compounds across Cambodia. Individuals held against their will in these compounds engaged in cryptocurrency investment fraud schemes known as “pig butchering” scams. These scams duped people contacted via social media and messaging applications into transferring cryptocurrency to accounts controlled by the scheme, 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 that hundreds of people were trafficked and forced to work in the scam compounds, often under the threat of violence. Zhi and a network of top executives in the Prince Group allegedly used political influence in multiple countries to protect their criminal enterprise and paid bribes to public 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.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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