Federal prosecutors have seized $15 billion in cryptocurrency from a large-scale investment scam dubbed a “pig butchering” scheme, allegedly orchestrated by Chen Zhi and his Cambodia-based Prince Group. The Justice Department called it the largest forfeiture in its history, while Treasury sanctions targeted dozens of affiliated organizations.

Scam Structure and Forced Labor Operations

Authorities allege that Chen Zhi and his co-conspirators operated at least ten forced labor camps in Cambodia since 2015. The compounds, surrounded by high walls and barbed wire, were transformed into automated call centers and phone farms designed to lure victims into cryptocurrency scams. Two facilities alone reportedly contained 1,250 mobile phones controlling 76,000 social media accounts.

Workers were trained to build online relationships with victims, sometimes using profile photos “not too beautiful” to appear authentic. Victims were persuaded over weeks to transfer funds, often under the guise of investment opportunities or emergencies, with fake profits shown to encourage further transfers.

Scale of the Operation and Financial Impact

In 2018, the Prince Group reportedly earned over $30 million daily from fraudulent schemes. Stolen funds were used to purchase luxury items, including yachts, private jets, and artwork such as a Picasso bought through a New York auction house. The $15-billion crypto seizure far exceeds the previous $225-million record for Justice Department forfeitures announced in June.

Law Enforcement Response and Ongoing Investigation

Chen Zhi has been charged with money laundering conspiracy and wire fraud conspiracy but remains at large. Christopher Raia, assistant director of the FBI’s New York field office, said the case represents one of the largest pig butchering scams the bureau has investigated. Authorities are focusing on major operations to “cut off the head of the snake” and encourage victims to report scams promptly.

Treasury officials have also sanctioned multiple affiliates of the Prince Group, designating them as criminal organizations. The investigation revealed that Chen and his associates bribed government officials in China and elsewhere to evade detection and maintain operations.

Public Warnings and Online Scam Proliferation

Authorities warn that cryptocurrency investment scams continue to proliferate across Southeast Asia, particularly along the Myanmar-Thailand border. Raia emphasized that victims should exercise extreme caution before transferring money online. He said, “It’s just not a good decision, especially in this day and age with social media and everybody on the Internet portraying themselves to be somebody they’re not.”

The federal government is calling on anyone who believes they have been targeted to contact the FBI and remain vigilant against online fraud schemes.