U.S. DOJ Seizes $15B in Bitcoin from Global “Pig Butchering” Crypto Scam — Chen Zhi Wanted
The U.S. authorities has made one in all its largest cryptocurrency seizures ever, 127,271 Bitcoin, value practically $15 billion. This huge rip-off is related to an enormous worldwide “pig butchering” rip-off allegedly led by Chen Zhi, a Chinese language-born businessman and founding father of Cambodia’s Prince Holding Group.
Largest Crypto Rip-off in U.S. Historical past
On October 14, the Division of Justice (DOJ) filed a civil forfeiture complaint to take management of the seized 127,271 Bitcoin value about $15 billion, marking what it calls the largest motion of its type.
Authorities accuse Chen Zhi, also referred to as “Vincent,” who’s accused of working a community of forced-labor rip-off compounds in Cambodia, the place victims have been trafficked and made to conduct crypto scams generally known as “pig butchering.”
Including to the thriller, on-chain investigator ZachXBT noted that the identical Bitcoin pockets was flagged two years in the past for having a weak non-public key. It was as soon as seen as compromised, however now the U.S. authorities says it controls the pockets.
How the Scams Labored?
Investigators say that victims have been typically recruited with false job provides in IT or advertising and marketing. As soon as they arrived in Cambodia, they have been held captive and compelled to focus on unsuspecting folks on-line, primarily by social media and messaging apps.
These scams typically start with on-line friendships or romantic conversations earlier than luring victims into pretend crypto funding platforms.
As soon as the belief is constructed, victims are satisfied to switch funds, that are then stolen and laundered by a community of over 100 shell and holding corporations all over the world to cover their origin.
Billions Misplaced to Crypto Scams
The U.S. Treasury and Amnesty Worldwide estimate that hundreds of victims have been trafficked into such rip-off operations. In 2024 alone, crypto frauds of this type value customers over $4 billion, a 40% bounce from the earlier 12 months.
Cambodia has now change into a significant hub for these scams, with at the least 53 lively compounds recognized this 12 months.
The scheme reportedly defrauded hundreds of traders throughout greater than 30 nations, producing billions in illicit income.
Chen Zhi Stays on the Run
The seized Bitcoin, now below U.S. authorities custody, is valued at practically $15 billion, whereas Chen Zhi stays on the run. Authorities say this case is not only about monetary crime, it’s a stark reminder of how human trafficking and crypto fraud have merged, exposing the darkish facet of digital finance.
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