Alleged crypto scam kingpin arrested in Cambodia after $12B bitcoin seizure

The alleged mastermind of a global crypto scam ring, Chen Zhi, was arrested in Cambodia this week and extradited to China following an international investigation.

Chen Zhi was indicted by the US Department of Justice in October on charges of wire fraud conspiracy and money laundering conspiracy linked to large-scale crypto fraud operations.

Authorities allege his network operated so-called “pig butchering” scams, building trust with victims before stealing their cryptocurrency holdings.

Prosecutors say the operation accumulated more than 127,271 bitcoin, valued at about $11.6bn, now held by the US government as part of a record civil forfeiture case.

Chen, identified as the founder and chairman of Prince Holding Group, allegedly oversaw scam compounds in Cambodia where trafficked workers were forced to run fraud schemes.

The Department of Justice designated Prince Group a transnational criminal organisation and imposed sanctions on Chen and associated individuals.

Investigators said some illicit proceeds were spent on luxury travel and high-value items, including a Pablo Picasso painting.

Separate data from Chainalysis shows crypto linked to criminal activity now exceeds $75bn globally, highlighting the scale of illicit digital asset use.

At the time of reporting, Bitcoin price was $90,911.84.