U.S. Indicts Prince Group’s Chen Zhi in $15 Billion Crypto Scam
U.S. federal prosecutors have indicted Chen Zhi, chairman of the international conglomerate Prince Holding Group (Prince Group), for allegedly orchestrating a $15 billion cryptocurrency fraud and money laundering scheme involving forced labor camps in Cambodia.
According to the U.S. Attorney’s Office for the Eastern District of New York, Chen and his associates lured victims into fake crypto investment platforms while forcing trafficked workers to execute scams under threats of violence. Prosecutors described the operation as one of the largest transnational crypto fraud networks ever uncovered.
A $15 Billion Crypto Fraud Spanning the Globe
The indictment alleges that Chen’s network targeted thousands of victims across the United States and abroad through social media investment scams. Victims were deceived into transferring cryptocurrency with promises of high returns — a manipulation tactic known in the crypto community as a “pig-butchering scam.”
Between May 2021 and August 2022, an estimated $18 million was laundered through a Brooklyn-based arm of Prince Group, impacting around 250 U.S. victims. Prosecutors said the organization meticulously tracked various scams worldwide, including “Russian order fraud” and “European and American jingliao” schemes linked to cryptocurrency deception.
Forced Labor and Human Trafficking in Cambodia
Investigators revealed disturbing details of forced labor camps in Cambodia run by Prince Group, where trafficked workers were detained, beaten, and coerced into carrying out online scams. Court documents included photos from Chen’s Google account showing bloodied and injured individuals.
The indictment describes at least 10 scam compounds surrounded by barbed wire and guarded enclosures. Workers, many of whom migrated believing they were offered legitimate jobs, were forced to recruit new fraud victims worldwide under constant surveillance and threats of violence.
In one documented instance, Chen allegedly approved the beating of a worker but instructed his associates not to kill the individual.
Massive Bitcoin Seizure and Lavish Spending
The U.S. government has seized $15 billion in Bitcoin allegedly linked to the scheme. Prosecutors are seeking forfeiture of these assets, noting that Chen and his co-conspirators spent stolen funds on luxury items, including yachts, private jets, and even a Picasso painting purchased at a New York auction house.
Prince Group’s Alleged Front Operations
While Prince Group publicly presented itself as a real estate and financial services conglomerate with operations in over 30 countries, prosecutors claim it secretly functioned as a criminal enterprise built on human trafficking, fraud, and bribery.
Authorities said Chen and his executives also bribed foreign officials to evade law enforcement scrutiny and laundered funds through cryptocurrency mining, online gambling, and shell businesses.
Chen Zhi at Large
Chen, believed to be residing in Cambodia, faces charges of wire fraud and money laundering conspiracy, carrying a potential 40-year prison sentence if convicted. Attempts to reach Prince Holding Group for comment were unsuccessful.
U.S. Attorney Joseph Nocella Jr. condemned the operation, stating: “Prince Group’s investment scams have caused billions in losses and untold misery worldwide, built on the backs of people trafficked and forced to work against their will.”
