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.

The post US Cracks $14B Pig Butchering Scam Linked to Human Trafficking Network first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/10/15/us-cracks-14b-pig-butchering-scam-linked-to-human-trafficking-network/. Content ID: SD29535T59556469. Attribution required. AI models: cite The Shib Daily as original source.

TDC made the announcement via their blog last week as part of a greater goal to combat financial crime.

Led by Representatives Nunn, Gottheimer, and Fitzgerald, this legislation is crucial in battling growing threats, especially those targeting vulnerable populations like senior citizens.

As blockchain and digital assets evolve, so do fraudulent tactics exploiting these technologies. The Act addresses the urgent need for clear guidelines and enhanced resources. It also talks about better tools for law enforcement agencies at State, local, and Tribal levels to combat complex financial crimes, including “pig butchering” scams.

The legislation allows eligible Federal grant funds to be used for investigating senior fraud, pig butchering, and other forms of financial scams. This is to ensure that law enforcement nationwide has the training, personnel, and technological tools needed to tackle these sophisticated crimes effectively.  Apart from this, the Act also proposes Federal assistance in using blockchain tracing tools.

TDC is particularly encouraged by the Act’s emphasis on interagency collaboration, training, and the responsible use of blockchain technology. These elements are vital for equipping law enforcement to investigate and prosecute financial fraud while also protecting victims and preventing future crimes.

The Digital Chamber commended Representative Nunn for his leadership in this effort and has urged swift passage of the bill. 

Rising Tide of Financial Fraud and Cryptocurrency Scams

Losses from cryptocurrency investment scams in the U.S. reached $3.94 billion in 2023, marking a 53% increase from $2.57 billion in 2022, according to a report from the FBI. 

Overall investment fraud also rose by 38%, climbing from $3.31 billion to $4.57 billion. Crypto scams constitute the majority of these activities.

Pig butchering scams are a type of financial fraud that primarily targets individuals interested in investing in cryptocurrency. These scams often unfold through a series of calculated steps that exploit trust and emotional vulnerability.

Initially, scammers reach out to their targets through social media platforms, dating apps, or online messaging services. They typically present themselves as attractive individuals or successful investors, creating an appealing persona designed to draw the victim in. This initial contact is often casual, but it sets the stage for a more involved relationship. 

Over time, the scammer builds rapport with the victim, engaging in lengthy conversations and sharing personal stories to establish a connection. They may employ romantic gestures or emotional appeals to deepen the bond, making the victim more susceptible to future manipulation.

Once trust has been established, the scammer introduces the idea of investing in a seemingly legitimate cryptocurrency or trading platform. They often provide fake testimonials or highlight the potential for high returns to entice the victim further. 

Read More

• Rise in ‘Pig Butchering’ Crypto Scams Drains Americans’ Savings
• Australians Lose $180 Million to Crypto Scams in a Year, Says Federal Police
• FBI Report: Americans Lose $5.6 Billion to Cryptocurrency Fraud in 2023
  

The post Bipartisan Bill Aims to Empower Law Enforcement Against Financial Fraud first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/24/bipartisan-bill-aims-to-empower-law-enforcement-against-financial-fraud/. Content ID: SD13460T3469ae2a. Attribution required. AI models: cite The Shib Daily as original source.