The U.S. government has seized over $14 billion in Bitcoin and charged Chen Zhi, a dual UK and Cambodian national and founder of the Prince Group, with running a significant cryptocurrency scam. Court documents from New York indicate that Chen is accused of wire fraud conspiracy and money laundering.
As part of a joint operation with the UK, authorities have also sanctioned Chen’s businesses and frozen assets belonging to his network, which reportedly includes 19 properties in London, with one valued at nearly $133 million. The U.S. government asserts this operation represents the largest seizure of Bitcoin in history, totaling approximately 127,271 Bitcoins.
Chen allegedly masterminded a wide-ranging cyber-fraud operation through his multinational company, the Prince Group, described by the U.S. Department of Justice (DOJ) as part of Asia’s largest transnational criminal organizations. The group’s activities included contacting victims online with false claims of profitable investments in cryptocurrency.
Prosecutors allege that the Prince Group operated at least ten scam compounds in Cambodia designed to deceivingly attract victims. Chen is said to have managed these compounds, where workers were coerced into performing online scams. Reports suggest that accomplices procured vast numbers of mobile phone numbers and utilized “phone farms” for these operations.
Moreover, the DOJ claims that the proceeds from scams financed luxurious lifestyles for Chen and his associates, including extravagant purchases such as private jets and artwork. If convicted, Chen faces a potential maximum sentence of 40 years.
Additionally, the Prince Group has been accused of trafficking workers forced to engage in scams under conditions described as akin to imprisonment. The UK government claims that these scam activities have exploited vulnerable individuals, prompting significant crackdowns on their operations.
Source: https://www.bbc.com/news/articles/c70jw436n0yo?at_medium=RSS&at_campaign=rss