US Justice Department Seizes Over $29 Billion in Bitcoin from Southeast Asian Crypto Scam Network
The US Justice Department seized over $29 billion in Bitcoin from Chen Zhi's Southeast Asian crypto scam network, accused of operating forced labor camps and defrauding investors through 'pig butchering' schemes.
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Overview
- The US Justice Department seized over $29 billion in Bitcoin, its largest forfeiture against a Southeast Asian crypto scam network involved in fraud and money laundering.
- Chen Zhi and co-conspirators are indicted for leading a massive 'pig butchering' crypto scam operation, defrauding investors of billions through online lures.
- The network ran forced labor camps in Cambodia, where trafficked workers, lured by fake job adverts, were held against their will and forced into online fraud.
- Workers at these compounds faced threats of torture while being compelled to execute various online scams, highlighting the severe human rights abuses within the operation.
- Beyond the initial fraud, Chen Zhi's network also laundered approximately $18 million in stolen funds through local channels, adding to the financial crimes committed.
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Analysis
Center-leaning sources frame this story by emphasizing the severity of the alleged crimes and the decisive actions of the U.S. government. They use strong descriptive language like "massive alleged cryptocurrency scam" and prioritize official U.S. statements, positioning the U.S. as a strong defender against transnational crime. The narrative consistently highlights the scale of the fraud and human trafficking.
"The indictment says people held against their will in the compounds were forced to engage in fraudulent investment schemes, also known as "pig butchering" scams that stole billions from unsuspecting investors around the world."
NPR"Prosecutors alleged that the Prince Group trafficked hundreds of workers, using fake job adverts to lure them into violent forced labor camps where they were coerced into committing online fraud."
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FAQ
Chen Zhi is the founder and chairman of the Prince Group, a Cambodian conglomerate, accused by U.S. prosecutors of masterminding a massive 'pig butchering' cryptocurrency scam network that used forced labor camps and defrauded investors globally.
The 'pig butchering' scam involves grooming victims through fake online relationships to invest in fraudulent cryptocurrency platforms, tricking them into investing large sums before defrauding them.
Chen Zhi's network operated forced labor camps in Cambodia where trafficked workers, deceived by fake job ads, were held against their will and coerced, under threat of torture, to execute online fraud schemes.
U.S. and U.K. authorities seized over $29 billion in bitcoins, imposed sanctions on Chen Zhi and his companies, froze assets including a mansion in London, and filed criminal indictments including charges of wire fraud, money laundering, and human trafficking.
The network has been operating since at least 2015, spanning over 30 countries, running scam compounds across Cambodia, Myanmar, and Laos, and targeting victims worldwide including in the United States.
History
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