Unmasking a $14 Billion Bitcoin Fraud: The Shocking Tale of Chen Zhi's Scandalous Empire

In a groundbreaking crackdown, the US government has seized over $14 billion (£10.5 billion) in bitcoin, tied to an alleged cryptocurrency scam masterminded by Chen Zhi, founder of the Prince Group, a Cambodian business network. Charged with wire-fraud conspiracy and money laundering, Zhi, who remains at large, is accused of running a vast cyber-fraud enterprise that involved forced labor camps in Cambodia and swindled thousands of victims globally.

The authorities revealed that Zhi’s operations were a part of one of the largest financial takedowns in history, marking the biggest seizure of bitcoin by the US to date, with approximately 127,271 bitcoins in custody. His organization reportedly incorporated at least ten scam centers across Cambodia, deploying sophisticated tactics to lure unwitting victims into transferring their cryptocurrency based on false promises of profitable investments.

According to US prosecutors, the Prince Group operated as a serious transnational criminal organization, engaging in human trafficking and maintaining prison-like compounds where victims were forced to work on scams. These compounds utilized massive setups, including call centers with thousands of mobile phones to reach potential victims online.

The ruling comes alongside the freezing of Zhi’s assets in the UK, with properties including a £100 million office building in London. Both US and UK authorities have joined forces in this operation, reflecting a commitment to combating the threats posed by such international crime networks. UK Foreign Secretary Yvette Cooper condemned the actions of the Prince Group for exploiting vulnerable individuals and using the proceeds to invest in luxury properties.

Adding to the gravity of the situation is the disturbing revelation that many of the workers in these scam centers are foreign nationals misled by the promise of legitimate employment, only to be subjected to severe exploitation and threats. Zhi faces a maximum of 40 years in prison if convicted, as the West intensifies efforts against the proliferation of financial fraud impacting countless lives.