The Justice Department has seized around $15 billion in Bitcoin from a large-scale “pig butchering” scam based in Cambodia. This operation allegedly involved forced labor camps where individuals were coerced into luring others into the scam.
According to a CNBC report, this seizure marks a historic moment as the Justice Department has confiscated nearly $15 billion worth of Bitcoin from a cryptocurrency wallet linked to a suspect involved in a significant “pig butchering” scheme operating in Cambodia. This action represents the largest forfeiture ever executed by the Department of Justice.
Breitbart News highlighted earlier that this extensive scam was targeting Americans by tempting them with promises of cryptocurrency wealth.
Pig butchering scams typically start through discussions about cryptocurrency investments. The attackers often pose as romantic interests, financial experts, or successful investors. Initially, victims might be able to make withdrawals after their deposits, but the scammers eventually lock these accounts, demanding up to 20% of the total balance to unlock them. Once paid, the victims find that their money is gone, with scammers inventing new stories to solicit further payments.
The term “pig butchering” originates from the process where the scammer first “fattens” the target up with investments, only to later “slaughter” them to extract as much money as possible.
The accused fraudster, Chen Zhi, known as “Vincent,” faces charges of wire fraud and conspiracy to commit money laundering, as per an indictment revealed in federal court in Brooklyn, New York. The 38-year-old, who immigrated from China, is still at large and might face a lengthy prison sentence if found guilty.
Prosecutors have identified Mr. Gee as the founder and chairman of the Cambodia-based Prince Holding Group. This group has reportedly evolved into Asia’s largest transnational criminal organization, operating ten fraudulent setups across Cambodia.
Brooklyn U.S. Attorney Joseph Nocera claimed that Gee orchestrated the largest investment fraud operation on record, contributing to a rampant illegal industry that caused extensive financial losses and suffering worldwide, including in New York.
The Prince Group has been active in over 30 countries, managing forced labor operations in Cambodia. Victims were held captive and forced into participating in the cryptocurrency scam known as “pig butchering.” These scams deceived people contacted via social media and messaging apps into sending cryptocurrencies to accounts controlled by the perpetrators, falsely promising profitable investments. In reality, the victims’ funds were stolen and laundered for the scam operators’ gain.
Prosecutors indicated that hundreds of individuals were trafficked and subjected to forced labor under the threat of violence. Allegedly, Mr. Shi and a network of Prince Group executives utilized political influence across various countries to safeguard their criminal activities, while also bribing public officials to evade law enforcement scrutiny regarding the scheme.
In a concurrent action, the Treasury Department has designated the Prince Group as a transnational criminal organization, implementing sanctions against Zhi and over 100 individuals and entities associated with their alleged illicit operations.
