Michaela
U.S. and U.K. authorities, including the Department of Justice (DOJ) and Treasury, have jointly targeted Cambodia-based Prince Holding Group and its chairman, Chen Zhi, in connection with a large-scale Pig Butchering crypto scam.
Key points:
- U.S. and U.K. authorities targeted Cambodia-based Prince Holding Group and chairman Chen Zhi in a massive $14B Pig Butchering crypto scam involving fraud, coercion, and human trafficking.
- Investigators traced billions laundered through shell companies, crypto exchanges, and mining operations, with 127,000 BTC ($14B) held in private wallets linked to Chen and associates.
- OFAC sanctioned 146 individuals and entities tied to the network, while U.S. losses from online scams surged past $16.6B, including $10B lost to Southeast Asia-based fraud in 2024 alone.
Unsealed filings in the Eastern District of New York show U.S. authorities are seeking the seizure of 127,000 Bitcoin, worth roughly $14 billion, linked to Chen and his associates. The DOJ describes Chen’s network as one of Asia’s most complex cross-border fraud schemes, with billions laundered through shell companies, cryptocurrency exchanges, and mining operations worldwide.
The company operated in real estate, finance, and hospitality across more than 30 countries, but prosecutors allege it became a criminal network that used deception and coercion. Victims were reportedly forced to run pig butchering scams, in which targets were slowly groomed before being duped into investing in fake cryptocurrency trading platforms.
After victims deposited funds, the fraudulent platforms disappeared. Prosecutors allege the money was laundered through over 100 shell and holding companies worldwide, routed through crypto exchanges and mining operations, and ultimately converted into Bitcoin stored in private wallets controlled by Chen and his associates.
Investigators uncovered that over 250 U.S. victims lost at least $18 million through shell entities operating in Brooklyn and Queens, New York. The DOJ notes that these losses are only a fraction of a sprawling global operation that funneled billions in stolen assets back to Cambodia.
Additionally, The Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on 146 individuals and entities linked to Prince Holding Group, describing the network as a transnational criminal organization involved in fraud, extortion, and human trafficking.
Authorities allege that proceeds from the pig butchering scam were spent on luxury assets, including private jets, vacation homes, and high-end collectibles, with Chen facing up to 40 years in prison if convicted.
U.S. losses from pig butchering scams have surged in recent years, exceeding $16.6 billion. In 2024 alone, Americans reportedly lost over $10 billion to Southeast Asia-based fraud schemes, marking a 66 percent increase from the previous year.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
