Suspected Leader of Crypto Fraud Detained in Cambodia Following $12 Billion Bitcoin Confiscation

Key Figure Behind Global Scam Network Apprehended

The individual believed to be the leader of a massive fraud operation responsible for stealing billions of dollars from victims in the United States and worldwide was detained in Cambodia on Tuesday and subsequently extradited to China, as reported by the Wall Street Journal.

Chen Zhi, a Cambodian citizen and the founder and chairman of Prince Holding Group, faced charges in October for conspiring to commit wire fraud and money laundering. Authorities allege he orchestrated scam operations that defrauded victims of billions.

Investigators revealed that Zhi’s organization detained people at various compounds, forcing them to participate in cryptocurrency scams commonly known as “pig butchering.” In these schemes, scammers build trust with unsuspecting individuals before stealing their assets—a process likened to fattening a pig before slaughter.

The criminal network amassed over 127,000 Bitcoin, currently valued at approximately $11.6 billion. These assets, now held by the U.S. government, are the focus of a record-breaking civil forfeiture case led by the Department of Justice.

In addition to the criminal charges, the Department of Justice labeled Prince Group a transnational criminal organization and imposed sanctions on Zhi and several associates.

Court documents describe how Zhi’s group trafficked hundreds of workers to Cambodian compounds to operate the fraudulent schemes. Zhi was said to have overseen the day-to-day management, maintained meticulous records, and instructed his team to use cryptocurrency to conceal the illicit profits.

Some of the stolen funds were reportedly spent by Zhi and his associates on lavish travel and high-end purchases, including acquiring a painting by Pablo Picasso.

Although authorities have seized nearly $12 billion in assets linked to Zhi’s operations, a Chainalysis report estimates that crypto wallets associated with criminal activity hold over $75 billion in total.

According to the same report, illicit actors controlled nearly $15 billion in July of last year—a figure that has surged by more than 300% since 2020, with most of these funds originating from theft.