Chen Zhi, founder of Cambodia's Prince Holding Group and alleged mastermind behind one of Asia's largest scam operations, was extradited to China on Jan. 7 after U.S. prosecutors announced a record seizure of 127,271 Bitcoin worth approximately $15 billion—prompting Chinese officials to accuse the United States of state-sponsored hacking to obtain the funds.
What Happened; Record Seizure Sparks Hacking Accusations
Chinese state television broadcast footage of the handcuffed, hooded 38-year-old being escorted off a plane in Beijing. Cambodia had arrested Chen the day before.
The U.S. Justice Department unsealed an indictment in October 2025, calling the forfeiture a "record" cryptocurrency seizure. The U.S. and UK coordinated sanctions against 146 individuals and entities linked to Prince Group.
China's National Computer Virus Emergency Response Center released a technical report in November 2025 claiming the seized Bitcoin matched funds stolen from Chen's mining pool in a December 2020 cyberattack.
The stolen cryptocurrency remained dormant for nearly four years before moving to new addresses in mid-2024.
The report stated the operational pattern was "more consistent with a state-level hacker organization" than typical hackers seeking quick cash-outs.
Du Guodong, a partner at Beijing Haotian Law Firm, told Chinese media the U.S. indictment did not disclose how authorities obtained Chen's private keys. He suggested this indicates the U.S. government may have stolen Chen's Bitcoin through hacking as early as 2020.
Blockchain analytics platform Arkham Intelligence tagged the final-destination wallets as belonging to the U.S. government. Chen has hired Boies Schiller Flexner to challenge the seizure.
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Why It Matters; Victims Left Without Restitution
Beijing Daily described the seizure as "黑吃黑 (black eating black)"—criminals preying on criminals. The publication wrote that the U.S. seized Chen's Bitcoin without mentioning returning funds to global victims.
Chen's Prince Group allegedly operated at least 10 forced-labor compounds in Cambodia, coercing trafficked workers into "pig-butchering" romance scams.
The U.S. Treasury Department estimates Southeast Asian scam operations stole at least $10 billion from American victims last year.
Washington has announced no restitution plan for the seized $15 billion.
Cambodia revoked Chen's citizenship in December 2025, and his Prince Bank has been ordered into liquidation.
The Justice Department has not addressed China's allegations, leaving unanswered questions about state-sponsored hacking, crypto security, and who controls the rules in digital finance.
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