Chinese Businessman Arrested for Alleged $11 Billion Bitcoin Scam
A businessman from China, Cheng Ji, is being sought in the United States for allegedly orchestrating a massive scam, stealing at least $11 billion in Bitcoin. This scheme, often referred to as a “pig butchering” scam, targets Americans and, reportedly, others as well. Local authorities confirmed his arrest in Asia.
Cheng, who leads the Prince Group, a conglomerate based in Cambodia, was apprehended and handed over to Chinese authorities, as announced by Cambodian officials. The arrest occurred on Tuesday at the request of the Chinese government, described by the Cambodian interior ministry as part of “cooperation in combating transnational crime.”
Once a naturalized citizen of Cambodia, Cheng’s extradition to China raises questions—it’s uncertain if he will be prosecuted there. This scheme is described as a form of cryptocurrency fraud where victims are lured into fake online relationships, leading them to misleading investment platforms.
Scammers typically invest weeks or even months building trust, often posing as successful investors or potential romantic interests, which eventually leads to victims being tricked into transferring their cryptocurrencies to fraudulent accounts. They often find themselves drained of funds when attempting to withdraw.
In October, the Ministry of Justice noted that Cheng had seized 127,271 bitcoins worth about $15 billion at that time. Since then, the value of Bitcoin has dropped nearly 30%.
Prosecutors allege that stolen funds were funneled into extravagant purchases, including luxury watches, fine art, private jets, and upscale real estate. Some of these assets, such as a $16 million mansion in London and a Picasso purchased in New York, have reportedly been frozen by authorities.
Both Cheng and the Prince Group have denied any wrongdoing. The situation is complicated, as China lacks a formal extradition treaty with the U.S., which leads to questions about whether Cheng could eventually stand trial in America.
Extradition between the countries is infrequent and generally managed through informal diplomatic channels, not established legal agreements.
Cheng is thought to be linked to a widespread online fraud operation utilizing human trafficking and forced labor to defraud victims across various countries. U.S. authorities assert that Cheng, along with the Prince Group, ran at least 10 fraudulent operations in Cambodia, where many workers were trafficked from China and coerced into committing fraud.
Reports suggest that the trafficked individuals, often misled with promises of legitimate jobs, had their passports confiscated and faced threats or violence if they failed to meet targets.
Federal prosecutors in Brooklyn released an indictment claiming that Cheng operated under names like “Vincent” and “Mastermind,” leading a criminal enterprise built on exploitation and inherently suffering.
The indictment outlines the operation’s malicious tactics, where unsuspecting victims were contacted through messaging and social media platforms, persuaded to transfer digital currency based on false promises of profitable investments. Ultimately, the funds were unjustly taken and laundered for the benefit of the culprits.
U.S. authorities have characterized this as one of the largest crypto fraud cases discovered, with victims lured into deceptive relationships and drained financially through bogus investments. Legal actions continue as federal prosecutors seek to reclaim the seized cryptocurrencies and further investigate the network involved.
