Feds Seize $15 Billion in Alleged Cryptocurrency Fraud Scheme Involving Forced Labor
BROOKLYN,NY – Federal prosecutors have unsealed an indictment and seized approximately $15 billion in cryptocurrency linked to an alleged forced-labor scam operation orchestrated by Chen Zhi,founder and chairman of Cambodian conglomerate Prince Group. The scheme, which authorities say netted billions of dollars from victims worldwide, relied on “pig butchering” – a sophisticated fraud where scammers cultivate romantic relationships with targets before convincing them to invest in phony cryptocurrency funds.
The operation allegedly involved trafficking individuals and holding them against their will in heavily secured compounds in Cambodia, forcing them to participate in large-scale cryptocurrency investment fraud and othre cybercrimes. The Justice Department alleges Zhi built Prince Group into one of Asia’s largest transnational criminal organizations while publicly presenting it as a legitimate multinational business operating in over 30 countries.
The indictment,filed in US District Court for the Eastern district of New York,details how Zhi and unnamed co-conspirators procured millions of phone numbers and account passwords from illicit online marketplaces and constructed ”phone farms” – automated call centers used to facilitate the fraud. “The defendant CHEN ZHI and his co-conspirators designed the compounds to maximize profits and personally ensured that they had the necessary infrastructure to reach as many victims as possible,” prosecutors wrote.
The “pig butchering” scam typically begins with attractive individuals feigning romantic interest to build trust with victims before persuading them to transfer large sums of bitcoin. In 2018, co-conspirators began acquiring phone numbers and passwords, and by 2019, construction was underway on the Golden Fortune compound, a key location for the operation. Evidence presented by prosecutors includes images of the “phone farms” used to conduct the fraudulent activities.
Zhi’s current whereabouts are unknown. The case highlights the growing threat of transnational cybercrime and the human cost associated with these schemes, where victims not only suffer financial loss but also contribute to a system built on forced labor and exploitation.
