NEW YORK: The US government has seized more than $14 billion in bitcoin and charged Chen Zhi for allegedly masterminding a massive cryptocurrency scam linked to forced labour camps.
Chen Zhi Accused of Global Crypto Fraud
According to the US Department of Justice (DOJ), Chen Zhi, a dual national including the UK, was charged in New York on Tuesday for wire fraud conspiracy and money laundering. The DOJ described the operation as one of the largest cyber-fraud schemes in the world.
US prosecutors called the case one of the biggest financial takedowns in history, noting that 127,271 bitcoins were confiscated — the largest cryptocurrency seizure ever made by the US government.
The DOJ alleged that Chen orchestrated a “sprawling cyber-fraud empire” through his multinational company, the Prince Group.
Sanctions and Asset Freezes in Joint UK-US Operation
As part of a coordinated international crackdown, both the US and UK governments sanctioned Chen’s businesses. The UK announced that it had frozen assets linked to his network, including 19 luxury properties in London, one of which is valued at nearly £100 million ($133 million).
Scam Compounds and Forced Labour Camps
Court documents cited by prosecutors claim that Chen oversaw at least ten scam compounds. These facilities allegedly operated as forced labour camps, where individuals were coerced into running online investment scams.
Workers were forced to contact unsuspecting victims worldwide, convincing them to transfer cryptocurrency based on false investment promises.
Sophisticated Digital Scam Network
Investigators found that Chen’s network created “phone farms” and fake online profiles to conduct large-scale social media scams. Two of the facilities alone had 1,250 mobile phones, controlling around 76,000 social media accounts used to deceive victims.
Chen Remains at Large
Despite the charges, Chen Zhi remains at large, and authorities have not confirmed his whereabouts. The DOJ emphasized that efforts are ongoing to locate and bring him to justice.
The Prince Group’s website lists its operations across property development, financial services, and consumer businesses, though US authorities allege it is a front for one of Asia’s largest transnational criminal enterprises.
