Government Seizes $15 Billion in Bitcoin
The U.S. government has seized a staggering $15 billion worth of Bitcoin, marking this as the largest confiscation of its kind in history. This comes as part of the dismantling of a significant “pig butchering” network, as described by authorities.
On Tuesday, federal prosecutors out of Brooklyn, New York, announced charges against Chen Zhi, the head of Prince Holding Group, who is also known as “Vincent.” The charges stem from a cryptocurrency scam that originated in Cambodia.
Zhi, who is 37, remains at large and faces allegations of managing a series of fraudulent forced labor operations across the U.S. Prosecutors state that he resorted to violence to maintain control over his workers.
Evidence unsealed in court revealed distressing images showing workers reportedly being abused while coerced into partaking in a “pig butchering” scam.
Prosecutors assert that Zhi orchestrated what could be considered the largest investment fraud operation to date. Joseph Nocera Jr., the U.S. Attorney for the Eastern District of New York, noted, “The allegations suggest this operation contributed to an illegal industry that has grown to alarming levels.”
Documents indicate that Zhi developed the Prince Group, which markets itself as a legitimate business dealing in real estate and consumer services, into a sprawling network known as “phone farms.” In these facilities, trafficked individuals were allegedly compelled to lure victims online via fake romantic narratives or enticing promises of high returns on cryptocurrency investments. The practice is referred to as “Sha Zhu Pan,” or “pig butchering.”
At its peak, prosecutors claim Zhi’s operation generated as much as $30 million daily and laundered crypto assets through unhosted digital wallets.
The seized Bitcoins, totaling 127,271, are now under the control of U.S. authorities and are believed to be tied to wallets associated with Zhi.
The Prince Group has been classified as a “transnational criminal organization” by the U.S. Department of the Treasury. Sanctions have also been imposed on Zhi and his associates.
The FBI director commented on the situation, highlighting the extensive reach of Zhi’s criminal network, which allegedly spanned multiple continents and exploited many innocent people.
With the completion of this significant operation, the FBI and its partners have concluded what they describe as the largest financial fraud bust in history.
FOX Business has sought comments from both the Department of Justice and Prince Holding Group regarding these developments.
