An indictment was unsealed in Brooklyn federal court, charging Chen Zhi, a Cambodian national and chairman of Prince Holding Group, with wire fraud conspiracy and money laundering. The charges allege that Prince Group operated forced-labor scam compounds in Cambodia, engaging in cryptocurrency fraud schemes that deceived victims globally. The U.S. Department of Justice has filed a civil forfeiture complaint against approximately 127,271 Bitcoin valued at around $15 billion, marking the largest forfeiture action in its history.
Attorney General Pamela Bondi said, "Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud." FBI Director Kash Patel added that this operation dismantled a criminal network spanning continents.
The indictment claims Chen Zhi led a cyber-fraud empire under Prince Group, using trafficked workers to execute scams. Assistant Attorney General John A. Eisenberg noted that these actions reflect their commitment to ensuring such crimes do not pay.
Since 2015, Prince Group has allegedly operated fraudulent investment schemes worldwide. Victims were misled into transferring cryptocurrency with false promises of profit. In reality, these funds were stolen and laundered for the perpetrators' benefit.
U.S. Attorney Joseph Nocella Jr. emphasized the impact on victims: "Prince Group’s investment scams have caused billions of dollars in losses and untold misery." He assured that efforts to pursue fraudsters will continue relentlessly.
The Department of Justice also announced sanctions against Prince Group as a transnational criminal organization alongside the U.K.'s Foreign Office. The FBI's New York Joint Asian Criminal Enterprise Task Force is investigating the case.
Cryptocurrency investment fraud resulted in over $5.8 billion in reported losses last year according to the FBI Internet Crime Complaint Center's report. Those affected by such crimes are encouraged to contact www.ic3.gov for assistance.
Assistant U.S. Attorneys Alexander F. Mindlin and others are prosecuting the case with support from international agencies including the U.K.'s National Crime Agency.
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