The US authorities have charged a Cambodian executive in a massive cryptocurrency fraud scheme, seizing over $15 billion in bitcoin, one of the largest digital asset confiscations in history.
Federal prosecutors in Brooklyn unsealed an indictment against Chen Zhi, 38, chairman of Prince Holding Group, a Cambodian conglomerate with interests in real estate, finance, online gambling, and crypto mining. Chen, also known as “Vincent,” is accused of orchestrating a massive fraud network, which involved forced labor, bribery, and transnational money laundering.
Authorities allege that Chen and unnamed co-conspirators lured global victims into online investment scams, generating illicit profits that were funneled into luxury assets, including yachts, and private jets. Prosecutors say the scheme relied on coerced workers and violent tactics to operate online scam centers throughout Southeast Asia.
In addition to the criminal charges, which include conspiracy to commit wire fraud and money laundering, US and UK officials imposed sanctions on Chen and his businesses. The US Treasury Department labeled Prince Holding Group a transnational criminal organization and sanctioned 146 related entities and individuals.
The seized bitcoin, totaling 127,271 coins currently valued at over $14 billion, may be used to compensate victims, pending court approval. According to blockchain analysis company Elliptic, the Bitcoins were “stolen” in 2020 from LuBian, a bitcoin mining business with operations in China and Iran.
The theft appears to have been carried out via brute-force attacks that exploited a weakness in the algorithm LuBian used to generate its cryptographic keys. In the days following the hack, LuBian spent over $40,000 sending hundreds of transactions to the hacker’s wallets, asking the perpetrators to return the stolen money.
The US also took action against Huione Group, another Cambodia-based financial firm, designating it as a “primary money laundering concern” under the USA PATRIOT Act. Officials say Huione has long served as a conduit for laundering crypto scam proceeds on behalf of cybercriminals.