DOJ seizes $15 billion in bitcoin from massive ‘pig butchering’ scam based in Cambodia - largest in history

Key Points * The Department of Justice has seized about $15 billion worth of bitcoin held by a man who oversaw a massive “pig butchering” fraud operation based in Cambodia, prosecutors said. * The seizure is the largest forfeiture action by the DOJ in history. * An indictment charging the alleged pig butcherer, Chen Zhi, was unsealed in federal court in Brooklyn, New York.

The Department of Justice has seized about $15 billion worth of bitcoin held in cryptocurrency wallets owned by a man who oversaw a massive “pig butchering” fraud operation based in Cambodia, prosecutors said Tuesday.

The seizure is the largest forfeiture action by the DOJ in history.

An indictment charging the alleged pig butcher, Chen Zhi, was unsealed Tuesday in federal court in Brooklyn, New York.

Zhi, who is also known as “Vincent,” remains at large, according to the U.S. Attorney’s Office for the Eastern District of New York.

Zhi was identified in court filings as the founder and chairman of Prince Holding Group, a multinational business conglomerate based in Cambodia, which operates dozens of business entities in more than 30 countries.

The Prince Group’s operation included “forced-labor scam compounds across Cambodia,” the U.S. Attorney’s Office said in a press release.

“Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as ‘pig butchering’ scams, that stole billions of dollars from victims in the United States and around the world,” the release said.

The scams duped people contacted via social media and messaging applications online into transferring cryptocurrency into accounts controlled by the scheme with false promises that the crypto would be invested and produce profits, according to the office.

“In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators,” the release said. “The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds.”

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 are accused of using 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, according to prosecutors.