Cambodian authorities have arrested Chen Zhi, the alleged mastermind of one of the largest cryptocurrency fraud operations in history, and extradited him to China.
Chen’s network is accused of orchestrating an estimated $12 billion‑plus crypto fraud, using so‑called “pig butchering” scams and forced‑labour cyber‑fraud compounds to defraud victims worldwide.
Cambodia’s Interior Ministry confirmed that Chen — a Chinese‑born tycoon and former Cambodian citizen whose citizenship was revoked in December 2025 — was arrested along with two alleged co‑conspirators after a months‑long investigation and deported to the People’s Republic of China at Beijing’s request.
Following his actions, Chen faced severe charges for conspiracy to commit wire fraud and money laundering in October. Notably, while imposing these charges, the court cited the founder and chairman of Prince Holding Group’s participation in operating scam sites that defrauded individuals from the US and globally.
After these charges were filed, the US authorities alleged that Chen’s illegal actions transformed Prince Group into one of the most significant transnational criminal organizations in Asia.
The crypto industry faces another significant fraud case
Several victims of the $12 billion crypto fraud claimed that they were under forced compliance at these scam sites. They further disclosed that Chen’s firm pressured them to engage in crypto-related fraud schemes, widely known as “pig butchering” scams.
Sources noted that crypto scammers in such incidents begin by establishing fake relationships with users who are unaware of any danger or threat before initiating their motive of stealing their funds.
Ideally, the expression “pig butchering” is derived from the concept of making a pig gain muscle and a healthy amount of weight efficiently before it is killed.
Meanwhile, reports confirmed that Chen’s team collected a total of 127,271 Bitcoin, worth approximately $11.6 billion, according to the current market price. After a lengthy investigation, the US government confiscated these assets, marking the biggest seizure in history.
To serve as a warning to individuals with similar intentions to Chen, the Department of Justice imposed sanctions on the founder and chairman of Prince Holding Group and others involved in this illegal activity.
Several individuals spark safety concerns in the ecosystem
Technology has played a significant role in facilitating criminal activities within the crypto industry. To support this claim, sources revealed that Chen’s team illegally transported hundreds of its staff members to various locations in Cambodia to run their fraud scheme. The Prince Group’s chairman utilized technology to gain direct control over these locations and managed to store detailed records of each one. At this time, his partners utilized cryptocurrencies to conceal the team’s earnings.
Chen and his colleagues used some of the collected funds to purchase luxurious items, such as a painting by Pablo Picasso, and catered to their trip to lavish places.
Following the seizure of $12 billion in Bitcoin as a result of the founder and chairman of Prince Holding Group’s unlawful act, reports from Chainalysis indicate that more than $75 billion has been collected from crypto-related criminal activities. This announcement sparked safety concerns among individuals.
To demonstrate the intense nature of the situation, sources pointed out that criminal groups gathered almost $15 billion in their own accounts as of July. This figure represents an over 300% surge since 2020, with most of this income resulting from funds stolen, according to a report from a reliable source.
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