Global Crypto Currency Scam Ring Dismantled: $12 Billion Bitcoin Seizure Marks Historic Law Enforcement Victory

The Scale of Deception

One of the largest cryptocurrency scams in history has finally unraveled. Authorities apprehended Chen Zhi, the mastermind behind Prince Holding Group, following his detention in Cambodia and subsequent extradition to China, according to the Wall Street Journal. The operation’s scope is staggering: investigators recovered over 127,000 Bitcoin—currently worth roughly $11.6 billion at recent market prices around $96.87K per coin—making it the most significant civil forfeiture case in U.S. Department of Justice history.

The seized assets represent just the tip of an iceberg in the broader world of illicit crypto activity. A Chainalysis analysis reveals that criminal wallets collectively hold over $75 billion in cryptocurrency, with approximately $15 billion controlled by bad actors as of last year alone. Since 2020, this figure has ballooned by more than 300%, demonstrating how crypto currency scam networks have exploited digital assets for large-scale theft.

How the Scheme Operated

Chen Zhi orchestrated a sophisticated fraud network that defrauded victims across the United States and globally of billions of dollars. The operation relied on what’s commonly called “pig butchering” schemes—a predatory tactic where fraudsters cultivate false relationships with targets, gain their trust, and ultimately drain their accounts. The perpetrators deployed hundreds of trafficked workers to compounds throughout Cambodia, where they ran the scams around the clock.

Court filings reveal that Zhi maintained tight operational control, keeping detailed records while instructing subordinates to funnel stolen funds through cryptocurrency channels to obscure the money trail. The organization eventually faced October charges including wire fraud conspiracy and money laundering. Beyond criminal indictments, the DOJ designated Prince Group as a transnational criminal organization and sanctioned Zhi along with his associates.

Where the Money Went

Rather than hoarding their ill-gotten gains, Zhi and his co-conspirators flaunted their wealth. Some proceeds funded extravagant lifestyles—including international travel and acquisitions of fine art, notably a Pablo Picasso painting. This visible spending pattern ultimately helped investigators track and expose the network’s full scope.

The recovery of $12 billion in assets signals a major breakthrough in combating cryptocurrency-enabled fraud, yet the data indicates that far larger criminal reserves remain untouched in the crypto ecosystem, underscoring the ongoing challenge for law enforcement worldwide.