U.S. and U.K. Seize $15B in Bitcoin in Massive Crackdown on Cyber-Fraud Empire

In a landmark move, U.S. and U.K. authorities announced the seizure of approximately 127,271 bitcoins — valued at about $15 billion — tied to a sprawling cyber-fraud network operating out of Cambodia. The crackdown, which includes coordinated sanctions and an indictment, represents one of the largest asset forfeitures in U.S. history and an aggressive push to dismantle transnational “pig butchering” schemes.

The Cyber-Fraud Operation: “Pig Butchering” and Forced Labor

At the heart of the case is Chen Zhi, also known as “Vincent,” the chairman of the Cambodian conglomerate Prince Holding Group. He is accused of masterminding a global fraud operation that lured victims into fake romantic or investment schemes via cryptocurrency. Over time, victims were pressured to invest increasing sums, only to later find their funds irretrievable.

What sets this case apart is the involvement of forced labor camps, where trafficked workers were reportedly held against their will, coerced into operating scam networks, and threatened with violence or torture if they refused.

According to the U.S. Department of Justice, the seized bitcoin assets were stored in unhosted wallets (i.e., wallets controlled via private keys not tied to exchanges) — making tracing and control especially complex until now.

Sanctions, Indictment, and Global Cooperation

On October 14, 2025, the U.S. Department of Justice unsealed an indictment charging Chen Zhi with wire fraud conspiracy and money laundering conspiracy in connection with these schemes. The case is being prosecuted in the Eastern District of New York.

Simultaneously, the U.S. Treasury, through its Office of Foreign Assets Control (OFAC), and U.K. authorities imposed sweeping sanctions on Chen, Prince Holding Group, and affiliated entities — including freezing U.K. real estate holdings tied to the operation.

The U.K. government specifically froze properties such as a £12 million mansion and a £95 million office block in London, linked to the scam network’s leaders.

Officials described the coordinated action as the “largest ever” CT-style (counter-threat finance) operation targeting a Southeast Asian cybercrime network.

Global Fallout and Victim Impact

Victims for this fraud spanned numerous countries; the network recruited via social media and messaging apps, promising high returns, and built trust over extended periods. Many victims lost life savings to the scheme.

Separately, many of the trafficked workers employed in scam compounds were themselves victims, enticed by job offers abroad before being trapped in deplorable conditions.

Experts say this case should serve as a warning to other fraud networks using cryptocurrency as a vehicle for money laundering. According to U.S. authorities, the operation may have generated daily revenues in the tens of millions.

Legal and Technical Challenges

Seizing crypto assets from unhosted wallets requires a combination of digital forensics, legal injunctions, and tracing techniques. Authorities believe this case represents the largest-ever crypto forfeiture in DOJ history.

Chen Zhi remains at large, possibly hiding in Cambodia or another sympathetic jurisdiction. His arrest may depend on international cooperation and diplomatic pressure.

Why This Matters: Takeaways for Public Security

• This case illustrates how cryptocurrency fraud has evolved: it’s no longer just online scams — it is now intertwined with human trafficking, forced labor, and transnational crime.
• The U.S. and U.K. response shows a willingness to target the financial infrastructure of criminal networks, not merely the front-facing operations.
• For potential investors and crypto users: always verify legitimacy, be wary of “too good to be true” promises, and use only regulated exchanges and platforms.
• For governments: stronger cross-border frameworks and digital asset regulation are critical to stymieing such crime across jurisdictions.

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Sources:

• Chairman of Prince Group Indicted for Operating Cambodian Forced
• N.Y. prosecutors indict business leader in alleged $15B cryptocurrency
• The U.S. government has seized over $14 billion in bitcoin