The U.S. Department of Justice has announced the indictment of Chen Zhi, chairman of the Cambodia-based Prince Holding Group, in connection with an international fraud and human trafficking investigation. The indictment, unsealed in federal court in Brooklyn, charges Zhi with conspiracy to commit wire fraud and conspiracy to commit money laundering. The charges relate to the operation of forced-labor scam compounds in Cambodia, which have been linked to cryptocurrency investment fraud schemes commonly known as "pig butchering" that have resulted in billions of dollars in global losses, according to a press release.
The indictment is connected to a civil forfeiture complaint involving approximately 127,271 bitcoin, valued at about $15 billion. As reported by the U.S. Attorney's Office, the cryptocurrency represents proceeds from the alleged criminal activities and was previously stored in unhosted wallets controlled by Chen Zhi.
"Today's action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud," said Attorney General Pamela Bondi in a press release. The indictment alleges that under Zhi's direction, the Prince Group developed into one of Asia's largest transnational criminal organizations, generating profits by defrauding investors through scams carried out by trafficked individuals who were forced to participate.
According to court filings, the Prince Group established contact with potential victims through social media and messaging apps, using false claims of profitable cryptocurrency investments. The schemes were carried out by individuals who had been trafficked and forced to participate under threat of violence, often within secured compounds located in Cambodia.
In addition to transferring illicit proceeds through cryptocurrency transactions, Zhi and his network used the funds to purchase luxury goods and entertainment, including high-end art such as a Picasso painting acquired in New York City. The indictment has resulted in coordinated sanctions by the U.S. Department of the Treasury and the United Kingdom’s Foreign, Commonwealth and Development Office, which have designated the Prince Group as a transnational criminal organization and frozen related assets.
The FBI continues to support the ongoing investigation into Chen Zhi, encouraging individuals with information about Zhi or the Prince Group to contact their tip line. If convicted, Zhi faces a maximum sentence of 40 years in prison. The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of New York, with involvement from the National Security and Cybercrime, Asset Recovery, Business and Securities Fraud, and Public Integrity Sections.
