TLDR
- The US and UK governments seized over $14 billion in Bitcoin linked to a global scam network.
- Cambodian businessman Chen Zhi was charged with wire fraud and money laundering by US prosecutors.
- The scam operation used fake online relationships to trick victims into transferring Bitcoin.
- The Prince Group allegedly operated at least ten scam compounds across Cambodia.
- Workers in the scam centers were trafficked and forced to work under threats and abuse.
Authorities from the United States and the United Kingdom have dismantled a massive scam network in a coordinated global operation. The action resulted in the seizure of over $14 billion in Bitcoin and criminal charges against Cambodian business tycoon Chen Zhi. Officials described it as one of the most significant financial operations ever carried out against cybercrime and fraud.
Chen Zhi Charged in Billion-Dollar Bitcoin Scam Network
US prosecutors charged Chen Zhi with wire fraud and money laundering linked to an elaborate crypto-based scam scheme. The Department of Justice confirmed the seizure of around 127,271 Bitcoin in the process. Chen remains at large but faces up to 40 years in prison if convicted.
According to court documents, Chen operated a criminal syndicate using fake investments to defraud victims online. His organization, the Prince Group, allegedly ran at least ten scam centers across Cambodia to facilitate these crimes. Prosecutors claimed the network used “phone farms” with thousands of devices to target victims globally.
US officials called the network a “criminal enterprise built on human suffering.” They added that it manipulated people through fake romantic relationships and false financial promises. The Bitcoin collected through scams was used to fund luxury travel, private jets, and rare artworks, including a Picasso painting.
Scam Centres Used Forced Labour and Trafficking
The scam operations reportedly involved trafficking and forced labor inside prison-style compounds in Cambodia. Prosecutors said foreign nationals were lured by job offers and then trapped in work scams. These workers managed approximately 76,000 social media accounts using fake personas.
Court records show the criminals used psychological tactics to win victims’ trust before asking for Bitcoin investments. Employees were instructed not to use overly attractive profile photos to appear more believable. Internal documents reportedly included scripts and manipulation strategies for online conversations.
Amnesty International previously linked some of these centers to torture and human rights abuses. Two named facilities operated by Jin Bei Group and Golden Fortune Resorts matched the sites highlighted in their report. The UK Foreign Office confirmed these businesses were sanctioned during this joint operation.
UK Seizes London Properties and Sanctions Criminal Network
British authorities froze assets tied to Chen’s organization, including 19 properties across London. These properties include a £100 million office block and a £12 million mansion. Officials said the network laundered scam proceeds through UK property and offshore companies.
UK Foreign Secretary Yvette Cooper said, “They were ruining lives and buying up London homes to store their money.” She confirmed sanctions against the Prince Group, Jin Bei Group, Byex Exchange, and Golden Fortune Resorts World. The move cuts Chen and his partners off from UK financial systems.
Fraud Minister Lord Hanson stated, “We will not tolerate this.” He emphasized that fraud harms victims both emotionally and financially, and that action was long overdue. The crackdown demonstrates cooperation between global governments in combating industrial-scale fraud networks that utilize Bitcoin.
The UK government said the scammers operated across borders, affecting thousands of victims worldwide. British and American authorities pledged to monitor and prevent future abuse involving cryptocurrency schemes. Officials emphasized that dirty money has no place in the UK’s financial system.
Global Impact of the Record Bitcoin Seizure
The Bitcoin seizure marks the largest in US government history and signals growing enforcement against crypto-linked crimes. The Department of Justice stated that the operation disrupted a central cybercriminal hub operating under the guise of a legitimate business. US officials added that such scams are increasingly run from professionally built compounds.
Authorities said the recovery of Bitcoin will support future victim compensation and further investigations. Officials are now analyzing financial records to trace additional transactions linked to Chen’s network. Bitcoin was the primary currency used to defraud victims and conceal criminal profits.
