Alleged Ringleader of Fraud Ring Arrested
The supposed leader of a fraud operation that bilked billions of dollars from individuals in the U.S. and globally was apprehended in Cambodia on Tuesday and subsequently extradited to China, according to officials.
Chen Zhi, a Cambodian national and the founder of Prince Holding Group, was indicted in October on charges related to a conspiracy for wire fraud and money laundering, specifically for his involvement in a fraudulent enterprise that victimized numerous people.
As part of this scheme, Zhi’s organization allegedly held people in compounds against their will, forcing them to participate in a cryptocurrency scam popularly known as “pig butchering.” In this method, scammers cultivate relationships with unsuspecting targets before ultimately robbing them of their money. The term reflects the tactic of fattening up pigs prior to slaughtering them.
Zhi’s network reportedly amassed over 127,271 Bitcoins, amounting to roughly $11.6 billion based on current values. Those funds are now under the U.S. government’s control as they pursue a massive civil seizure and forfeiture case, marking a historic moment for the Department of Justice.
Alongside the indictment, the Justice Department identified the Prince Group as a transnational criminal organization, imposing sanctions on Zhi and others involved.
The indictment revealed that Zhi’s group trafficked hundreds of workers to various sites in Cambodia to manage the fraudulent network. He allegedly oversaw the operations directly, maintaining meticulous records, while instructing his employees on the use of cryptocurrencies to cover up the organization’s activities.
Part of the stolen funds was reportedly used by Zhi and his associates for extravagant purchases, which included luxury vacations and artwork by Pablo Picasso.
In total, Zhi’s fraud was linked to nearly $12 billion in seized funds connected to illegal activities. A report by Chainalysis indicated that illegal entities held nearly $15 billion as of last July, signifying a more than 300% increase since 2020, with a substantial portion derived from stolen assets.
