The U.S. government has made one of its largest cryptocurrency seizures ever, 127,271 Bitcoin, worth nearly $15 billion. This massive scam is connected to a vast international “pig butchering” scam allegedly led by Chen Zhi, a Chinese-born businessman and founder of Cambodia’s Prince Holding Group.
On October 14, the Department of Justice (DOJ) filed a civil forfeiture complaint to take control of the seized 127,271 Bitcoin worth about $15 billion, marking one of the largest crypto scams in U.S. history.
Authorities accuse Chen Zhi, also known as “Vincent,” who is accused of running a network of forced-labor scam compounds in Cambodia, where victims were trafficked and made to conduct crypto scams known as “pig butchering.”
Adding a twist in the story, on-chain investigator ZachXBT noted that the same Bitcoin wallet the DOJ now claims to control was flagged two years ago for having a weak private key. Back then, the wallet was once seen as compromised, but now the U.S. government says it controls the wallet.
Investigators say that victims were often recruited with false job offers in IT or marketing. Once they arrived in Cambodia, they were held captive and forced to target unsuspecting people online, mainly through social media and messaging apps.
These scams often begin with online friendships or romantic conversations before luring victims into fake crypto investment platforms.
Once the trust is built, victims are convinced to transfer funds, which are then stolen and laundered through a network of over 100 shell and holding companies around the world to hide their origin.
The U.S. Treasury and Amnesty International estimate that thousands of victims have been trafficked into such scam operations. In 2024 alone, crypto frauds of this kind cost users over $4 billion, a 40% jump from the previous year.
Cambodia has now become a major hub for these scams, with at least 53 active compounds identified this year.
The scheme reportedly defrauded thousands of investors across more than 30 countries, generating billions in illicit profits.
The seized Bitcoin, now under U.S. government custody, is valued at nearly $15 billion, while Chen Zhi remains on the run. Authorities say this case is not just about financial crime, it’s a stark reminder of how human trafficking and crypto fraud have merged, exposing the dark side of digital finance.
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