Zhi Chen: Kingpin, Kingdom, & $15B Bitcoin Seizure

The Prince of Scams: Inside Zhi Chen’s $15 Billion Crypto Empire and the Global Manhunt to Bring It Down

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The story of Zhi Chen is a tale of two identities: a celebrated Cambodian philanthropist and a ruthless international criminal. This deep dive explores how a sophisticated cyber-fraud empire flourished in plain sight, protected by political connections, and ultimately unraveled in a historic international crackdown.

Part I: The Cambodian Kingmaker

The Philanthropist and the Fugitive

In Phnom Penh, he is Neak Oknha Chen Zhi, Chairman of Prince Holding Group, a visionary entrepreneur, and a benevolent pillar of the community, sponsoring hundreds of university scholarships. He has served as a trusted advisor to Cambodia’s Prime Ministers, placing him at the heart of the kingdom’s political power structure.

However, in a Brooklyn federal courthouse, U.S. prosecutors paint a starkly different picture. To them, Chen Zhi, a 38-year-old Chinese émigré with Cambodian and Cypriot passports, is a predator—the alleged mastermind behind “one of the largest investment fraud operations in history” and the leader of a violent transnational criminal organization. Indicted for wire fraud and money laundering conspiracy, Chen Zhi is now a fugitive, the subject of an international manhunt and crippling sanctions from the U.S. and U.K.

This chasm between identities—the celebrated kingmaker and the wanted kingpin—is the central enigma of the Zhi Chen affair. It reveals how a criminal enterprise can flourish in plain sight, shielded by the very institutions meant to uphold the law.

Building an Empire on Shifting Sands

Chen Zhi’s public ascent was swift. Founded around 2015, Prince Holding Group rapidly expanded into a multinational conglomerate with operations in over 30 countries. Its portfolio included Prince Bank Plc., Prince Huan Yu Real Estate, and dozens of other ventures, embodying Cambodia’s post-conflict economic ambitions.
A panoramic view of Phnom Penh's modern skyline, featuring prominent skyscrapers and commercial buildings, symbolizing the rapid economic development and the scale of Prince Holding Group's real estate ventures.

This veneer of legitimacy was, according to prosecutors, a meticulously crafted illusion. The DOJ alleges that Prince Group was secretly built into one of Asia’s largest and most brutal transnational criminal organizations (TCOs). The legitimate businesses provided infrastructure to launder billions in illicit revenues, transforming stolen cryptocurrency into tangible assets like skyscrapers and licensed banks, effectively embedding the criminal enterprise into Cambodia’s economy.

Chen’s deep integration into Cambodia’s ruling elite provided a sovereign shield. A Harvard expert described Chen as a “central pillar” of a criminal economy intertwined with the Cambodian regime. The Cambodian government’s defensive response to the indictments—stating Prince Group met all legal requirements and demanding “sufficient evidence”—suggests a dangerous codependency. This case is a chilling example of state-captured crime, where the lines between boardroom, government, and criminal underworld blur.

Part II: The Factory of Tears

Behind Prince Holding Group’s polished corporate façade lay a dark machinery of human exploitation and industrial-scale fraud, powered by the suffering of thousands of trafficked workers held captive in modern-day slave camps.

Anatomy of a “Pig Butchering”

The core of Chen’s criminal enterprise was the “pig butchering” scam (Sha Zhu Pan), a cruel form of investment fraud combining financial con with intimate betrayal.
A conceptual image illustrating the 'pig butchering' scam, showing a digital interface with fake investment charts and a person on a phone, with shadowy figures in the background representing the scammers.

The scam begins with a “wrong number” text or a friendly overture on dating apps. The scammer builds trust and intimacy over weeks or months, then introduces a lucrative, often crypto-based, investment opportunity. Victims are guided to a fraudulent trading platform where small investments appear to yield spectacular returns, leading them to invest larger sums, often their life savings. The “slaughter” occurs when victims try to withdraw funds; the scammer vanishes, leaving victims with catastrophic financial and emotional trauma.

Chen’s organization executed this on an industrial scale, using “phone farms” with 1,250 mobile phones to control 76,000 fake social media accounts. Prosecutors allege Chen personally tracked fraudulent profits using the term “killing pigs.” These scams have stolen over $75 billion globally between 2020 and early 2024.

The Compounds of Despair

The human engine of this fraud was a modern slave trade. Prince Group lured workers from over 60 countries with false job promises, confiscating passports and forcing them into servitude in “violent forced labor camps.”
A stark, high-angle view of a fortified compound with high walls, barbed wire, and surveillance cameras, representing the forced labor camps where victims were held.

Survivor accounts describe facilities like “Golden Fortune,” where workers were under constant surveillance. Those failing quotas faced horrific abuse. The indictment alleges Chen Zhi was directly involved in managing compounds and violence, even approving beatings with the caveat “not be beaten to death.” This transforms the case into one of a ruthless criminal syndicate, viewing human life as a disposable asset.

Cleaning the Blood Money

To legitimize billions in stolen cryptocurrency, Chen’s organization built a sophisticated financial labyrinth, controlling every stage of the criminal value chain from human trafficking to capital reinvestment. This corporate approach to crime provided immense efficiency and control.

At its heart was a complex web of over 100 shell and holding companies globally. Key entities included Prince Holding Group itself, Jin Bei Group (luxury hotels/casinos), Huione Group (financial services, processed over $4B illicit crypto), Byex Exchange (cryptocurrency exchange), and Warp Data Technology (Bitcoin mining operation).
A complex diagram illustrating the money laundering network, with arrows showing the flow of illicit cryptocurrency through various shell companies, exchanges, and legitimate businesses, eventually leading to tangible assets.

The organization used advanced crypto laundering techniques like “spraying” (disaggregating funds into many wallets) and “funneling” (re-consolidating them) to obscure criminal origins before cashing out or reinvesting. These laundered proceeds funded an extravagant lifestyle for Chen and his inner circle—yachts, private jets, rare artwork, and bribes to officials protecting the empire.

Part III: The Unraveling

For years, Zhi Chen’s empire operated with impunity. But a massive, multi-year international investigation, leveraging cutting-edge technology and global cooperation, was quietly closing in. The unraveling was swift, decisive, and historic.

The Digital Ghost Hunt

The takedown of the Prince Group TCO was a landmark achievement for global law enforcement, led by U.S. agencies (DOJ, Treasury, FBI, DEA) and U.K. counterparts (FCDO, OFSI).
A conceptual image of a digital ghost hunt, showing a network of interconnected computers and blockchain transaction trails, with law enforcement badges superimposed, symbolizing the use of technology in the investigation.

A critical element was sophisticated blockchain analytics. The transparency of cryptocurrency’s immutable public ledger became their Achilles’ heel. Investigators, aided by firms like Chainalysis and Elliptic, traced billions in stolen crypto through “spraying” and “funneling” schemes. Combining digital evidence with traditional intelligence, authorities pieced together the full scale of Chen’s enterprise.

The Day the Empire Cracked

On October 14, 2025, the hammer fell. Coordinated actions from New York to London to Southeast Asia moved to decapitate the Prince Group TCO.

In Brooklyn, the U.S. Attorney’s Office unsealed the criminal indictment against Chen Zhi. Simultaneously, the U.S. Treasury Department designated Prince Holding Group as a Transnational Criminal Organization, imposing sweeping sanctions on 146 associated individuals and entities. This cut the conglomerate off from the U.S. financial system and threatened secondary sanctions globally, even targeting resort operations in Palau.

The U.K. government executed a parallel strike, announcing sanctions and freezing assets linked to Chen in London, including a £12 million luxury mansion and a £100 million office building. This sent a clear message that major financial centers would no longer be safe havens for laundering crime profits.

The Dragon’s Hoard: Seizing $15 Billion in Bitcoin

The centerpiece of the takedown was an unprecedented digital asset seizure. The DOJ announced it had taken custody of approximately 127,271 Bitcoin connected to Chen’s schemes, valued at roughly $15 billion—the largest single forfeiture in DOJ history.
A visual representation of a massive pile of Bitcoin symbols or digital gold coins, with a U.S. government seal or badge prominently displayed, symbolizing the historic seizure of $15 billion in Bitcoin.

This was a remarkable technical victory. The funds were in “unhosted” wallets, controlled by Chen through private cryptographic keys. Law enforcement’s ability to gain control of these keys and seize the assets marked a new era in operating within self-custodied digital assets, puncturing the myth of their untouchability.

Blockchain analysts at Elliptic suggested the Bitcoin trove appeared to be the same funds stolen from Chinese crypto mining company Lubian in 2020. The indictment describes Lubian as part of Chen’s money laundering network, raising questions about the original theft or a fabricated event to launder proceeds.

Perhaps the most profound consequence is the U.S. government’s decision regarding the money. Mandated by Executive Order 2025, the 127,271 Bitcoin will not be sold but held long-term as the foundational assets of a newly established U.S. Strategic Bitcoin Reserve.

This policy shift represents a monumental moment for digital assets, conferring a new form of legitimacy. By holding Bitcoin as a strategic asset, the U.S. implicitly signals to the global financial system that it sees long-term strategic value in holding Bitcoin. In a deep irony, the downfall of one of crypto’s biggest criminals may have become the catalyst for its ultimate institutional acceptance.

Part IV: The Aftermath and the Road Ahead

The coordinated takedown of the Prince Group TCO sent shockwaves through international finance, geopolitics, and cryptocurrency, exposing the dark underbelly of a national economy and setting new precedents for law enforcement and regulation.

A Kingdom in the Crosshairs

For Cambodia, the Zhi Chen affair is a moment of reckoning, casting an uncomfortable international spotlight on its role as a permissive haven for Chinese-led transnational organized crime. The Cambodian government’s cautious response—defending Chen’s legal standing while calling for evidence—reveals its delicate position. Full cooperation with the West risks alienating powerful interests; refusal risks further international isolation.

The actions “fundamentally change the risk calculus” for criminals and their protectors in the region. The question is whether this external pressure will compel Cambodia to genuinely crack down on the multi-billion-dollar scam industry or if enterprises will simply rebrand and burrow deeper into the shadows.

A New Precedent for Crypto Crime

The Zhi Chen case will be remembered as a watershed moment in financial crime, representing a terrifying evolution combining the scale of Wall Street frauds with new technological sophistication and human brutality. It serves as a powerful argument that the “Wild West” era of unpunished crypto crime is over.
A conceptual image showing a broken chain representing the disruption of a criminal network, with digital currency symbols and law enforcement icons, symbolizing a new precedent for crypto crime.

The investigation established a potent model for law enforcement: combining blockchain’s forensic transparency with traditional intelligence. This success shatters the myth of crypto as a perfect tool for criminals.

The fallout will force dual professionalization. The legitimate crypto industry must embrace robust compliance, AML, and KYC protocols, making collaboration with law enforcement non-negotiable. Criminals will adapt, likely moving away from transparent blockchains like Bitcoin towards privacy-enhancing technologies. The barrier to entry for large-scale crypto crime is now significantly higher, altering the risk landscape for both illicit and legitimate actors.

Part V: Ricky’s Take: A Crypto Insider’s Perspective

A special contribution from ‘Ricky,’ a veteran crypto trader and analyst.

Let’s get one thing straight: Zhi Chen isn’t a crypto problem. He’s a human evil problem. Blaming Bitcoin for what he did is like blaming the invention of the printing press for counterfeit money. It’s lazy, and it misses the point entirely. The man built a slave-powered empire of lies. He would have done it with seashells, bearer bonds, or Beanie Babies if he thought he could get away with it. He just happened to rise during the crypto boom, so he used crypto.

And you know what? He got caught because he used crypto. Every single stolen dollar that moved on-chain left a permanent, indelible breadcrumb. Sure, he tried to cover his tracks with “spraying” and “funneling”—fancy words for the digital equivalent of stuffing cash into a thousand different shoeboxes—but the Feds had the map. They followed the money in a way that would be utterly impossible with a billion dollars in cash stuffed in suitcases. The blockchain wasn’t the perfect tool for the criminal; it was the perfect tool for the forensic accountant. It was the rope he hung himself with.

The real lesson here isn’t for regulators; it’s for the “degens” and the get-rich-quick crowd that populates half of Crypto Twitter. The “pig butchering” scam is just the apex predator of the same ecosystem of greed that fuels every pump-and-dump and rug-pull. It preys on the exact same impulse: the belief that you, and you alone, have stumbled upon a secret key to effortless wealth. A beautiful stranger DMs you with a can’t-miss crypto tip? Come on. If it sounds too good to be true, it is. This is a brutal, multi-billion-dollar wake-up call to practice some radical skepticism and do your own damn research.

But the most fascinating, most ironic part of this whole saga is what happens next. The U.S. government, after years of treating Bitcoin like a digital biohazard, is now one of the biggest HODLers on the planet. They didn’t just seize the money; they created a “Strategic Bitcoin Reserve.” A strategic reserve. That’s not what you do with contraband you’re eager to dump. That’s what you do with an asset you believe has long-term value.

So, the United States government is now, officially, a Bitcoin whale. Think about the implications. They have a vested interest in the stability and success of the network. They’ve given Bitcoin a stamp of legitimacy that no ETF approval ever could. A criminal mastermind, through his own downfall, may have accidentally done more for the institutional adoption of Bitcoin than a thousand conference keynotes. You can’t make this stuff up.

Ultimately, this whole sordid affair is part of a much bigger battle for the soul of this technology. Chen’s empire is the dystopian vision of crypto made real: a tool for surveillance, exploitation, and centralized control, all hidden behind a veil of decentralization. It’s everything the original cypherpunks were fighting against. Their vision was one of empowerment, privacy, and freedom from coercive systems. This case forces everyone in this space—from the developers to the investors to the regulators—to look in the mirror. The technology is a tool. It can be used to build a prison or a pathway to freedom. After seeing the horrors of Chen’s prison, we’d better be damn sure we know which one we’re building.

Sources Used in the Report

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