Major Indictment in Cryptocurrency Fraud and Forced Labor Case
The Department of Justice (DOJ) has revealed significant charges against an alleged mastermind behind a cryptocurrency fraud operation centered in Cambodia.
This indictment, officially filed on October 8 and made public recently, claims that Chen Zhi, also known as Vincent, managed a forced labor facility in Cambodia while running a deceptive cryptocurrency investment scheme through his business, Prince Holding Group. The alleged activities have reportedly resulted in billions of dollars in losses for victims across the U.S. and globally.
In conjunction with this case, the United States Attorney’s Office for the Eastern District, along with the DOJ’s National Security Division, has initiated civil forfeiture actions for 127,271 Bitcoins, valued at around $15 billion. This suit is claimed to be the largest forfeiture case in the Justice Department’s history.
Prince Holding Group, according to its website, is involved in various sectors such as real estate development and financial services across over 30 countries. Attempts to reach the company for comment yielded no response.
Additionally, a key figure, Mr. Gee, who is currently unaccounted for, faces charges of conspiracy to commit wire fraud and money laundering. If found guilty, he could face a lengthy prison sentence, potentially up to 40 years.
Attorney General Pam Bondi and Deputy Attorney General Todd Blanche have characterized the indictment as a crucial move against the pervasive issues of human trafficking and cyber-related financial crimes.
They stated, “By dismantling a criminal enterprise reliant on forced labor and fraud, the U.S. sends a strong message that we will do everything possible to protect victims, reclaim stolen assets, and hold accountable those who exploit others for profit.”
The indictment further alleges that Prince Holding Group orchestrated a worker trafficking scheme, coercing individuals to labor across various Cambodian sites, often under the threat of violence. These workers would reach out via messaging and social media, convincing people to send cryptocurrencies for investment, a fraudulent practice known as “pig butchering.”
Instead of authentic investments, the funds were funneled to benefit Mr. Gee and several unnamed accomplices. Victims spanned the globe, supported by local networks that aided in the operation.
A network based in Brooklyn reportedly laundered over $18 million from more than 250 victims throughout the U.S. between May 2021 and August 2022. In October 2022, law enforcement apprehended 11 individuals connected to these activities.
To conceal their actions, Mr. Gee and his associates allegedly employed techniques called “spraying” and “funneling,” which involved distributing cryptocurrency profits across multiple virtual addresses only to later consolidate them. Reports also suggest that they bribed international officials to evade scrutiny.
The FBI’s New York Joint Asian Criminal Enterprise Task Force, alongside the bureau’s Virtual Assets Unit, is actively investigating this matter.
On the same day, the Treasury’s Office of Overseas Assets Control and the Financial Crime Enforcement Network—along with the UK’s Foreign, Commonwealth and Development Office—imposed sanctions on approximately 146 entities affiliated with Prince Holdings Group.
Treasury Secretary Scott Bessent remarked, “The rise in cross-border fraud has cost Americans significant amounts and devastated life savings in moments. The Treasury Department is committed to cracking down on foreign fraudsters to safeguard Americans.”
