BROOKLYN, N.Y. — The U.S. Department of Justice has charged Chen Zhi, who is also referred to as Vincent, a 37-year-old Cambodian citizen and the chairman of Prince Holding Group, with conspiracy to commit wire fraud and conspiracy to launder money.
Prosecutors allege that Chen directed the operation of forced-labor compounds in Cambodia that ran large-scale cryptocurrency investment scams, commonly referred to as “pig butchering” schemes. The scams allegedly defrauded victims in the United States and other countries of billions of dollars. Chen is currently at large.
In a related move, federal authorities have initiated a civil forfeiture complaint aiming to confiscate around 127,271 Bitcoin, estimated to be worth approximately $15 billion. Investigators claim these funds are the result of alleged fraud and money laundering activities. Currently, the Bitcoin is held in custody by the U.S. government. Officials have characterized this filing as the largest forfeiture action in the history of the Department of Justice.
Court documents reveal that Prince Holding Group, a multinational conglomerate established by Chen in 2015, has been operating in more than 30 countries under the pretense of real estate development, financial services, and consumer ventures. Prosecutors assert that the company also managed scam operations in Cambodia, where trafficked workers were coerced into executing online investment fraud under threats of violence.
The indictment indicates that victims were approached via social media or messaging platforms and convinced to send cryptocurrency for supposed investment opportunities. Allegedly, the funds were misappropriated and laundered through intricate cryptocurrency transactions, employing methods intended to obscure the origins of the assets.
Investigators report that Chen and his associates utilized the illicit proceeds to acquire luxury items, including yachts, private jets, vacation homes, and artwork, such as a Picasso painting purchased in New York. Furthermore, the indictment claims that executives from Prince Group bribed officials in various countries to safeguard their operations and laundered proceeds through business activities like online gambling and cryptocurrency mining.
If found guilty, Chen could receive a maximum prison sentence of 40 years.
Simultaneously, the U.S. Department of the Treasury has classified Prince Group as a transnational criminal organization, imposing sanctions on Chen along with related individuals and entities. The United Kingdom has also announced corresponding sanctions.
Authorities are encouraging anyone with information regarding Chen or Prince Group to reach out to the FBI at PrinceGroupTips@fbi.gov. Individuals who suspect they have fallen victim to cryptocurrency investment fraud can submit reports through the FBI Internet Crime Complaint Center at www.ic3.gov. An indictment is simply an accusation. The defendant is considered innocent until proven guilty in a court of law.
