The leader of the scam, Chen Zhi, remains at large
The US government has seized roughly $15 billion in Bitcoin linked to one of the largest global cryptocurrency fraud schemes ever uncovered. Federal prosecutors allege the digital assets were tied to a “pig butchering” scam — a criminal network blending romance fraud, forced labor, and crypto manipulation. The operation was allegedly run by Chinese businessman Chen Zhi, whose company, Prince Holding Group, posed as a legitimate multinational investment firm while operating scam compounds in Cambodia.
According to court documents unsealed in New York, Chen’s organization lured victims into fake online relationships before convincing them to invest through fraudulent crypto trading platforms. Once deposits were made, victims found their accounts locked, their money vanished, and communication cut off. Many of the workers behind these scams were reportedly trafficked into the compounds and forced to work under threat or confinement.
The Department of Justice described the scheme as one of the most extensive investment frauds in history. Authorities recovered 127,271 bitcoins, now held in US custody, following an international investigation involving financial crime units and blockchain analysts. Officials emphasized that the seizure demonstrates the growing ability of law enforcement to trace and reclaim digital assets, even from complex cross-border operations.
While Chen Zhi remains at large, his network is facing heavy scrutiny. The US Treasury has issued sanctions against Prince Group and several associates, cutting off access to American financial systems. Analysts say the move signals a more aggressive stance on crypto-related crime, especially those linked to human trafficking and money laundering.
For the cryptocurrency market, the seizure represents both a victory for regulation and a wake-up call for traders. It shows that blockchain transactions, once thought to be untouchable, can be traced and frozen. The operation not only dismantled a billion-dollar scam but also marked a turning point in global crypto enforcement efforts.
