US Seises $14bn in Bitcoin: Inside the Crypto Scam Empire
The US just pulled off the largest Bitcoin seizure in history — $14bn worth, to be exact. That’s 127,271 BTC now sitting in government wallets, seised from an alleged crypto scam empire that makes your average Ponzi scheme look like child’s play.
The mastermind? Chen Zhi, a UK-Cambodian national who founded the Prince Group, a sprawling business network accused of running forced labour camps disguised as call centres. The US and UK coordinated sanctions, with Britain freezing 19 London properties — including a nearly £100m office building. Here’s what went down.
What’s the Prince Group Accused Of?
On the surface, the Prince Group looks legit. Its website touts property development and financial services across Southeast Asia. But according to the US Department of Justice, it’s actually one of Asia’s largest transnational criminal organisations.
The Scam Playbook
Prosecutors say Chen Zhi orchestrated a massive crypto fraud scheme that targeted victims worldwide. Here’s how it worked:
- Fake investment promises: Victims were contacted online and convinced to transfer cryptocurrency with promises of huge returns
- Industrial-scale operations: The Prince Group allegedly built at least 10 scam compounds across Cambodia
- Phone farms: Two facilities alone housed 1,250 mobile phones controlling around 76,000 social media accounts
The criminal operation even had training manuals advising scammers not to use profile photos of women who were “too beautiful” — because that would look suspicious. Points for attention to detail, I guess?
Forced Labour and Human Trafficking
This isn’t just financial crime. It’s human trafficking dressed up as employment.
Workers were lured to Cambodia with promises of legitimate jobs, then trapped in prison-like compounds and forced to run scams under threat of torture. An Amnesty International report earlier this year flagged two of these facilities — Jin Bei Group and Golden Fortune Resorts — for using forced labour.
Assistant Attorney General John Eisenberg called it a “criminal enterprise built on human suffering.” That’s not hyperbole.
How They Spent the Money
When you’re allegedly stealing billions, subtlety goes out the window.
Chen Zhi and his accomplices reportedly spent the proceeds on:
- Luxury travel and entertainment
- Private jets
- Rare artwork, including a Picasso painting from a New York auction house
- High-end watches
Meanwhile, they allegedly laundered money through businesses in the British Virgin Islands and invested heavily in UK property. That £100m London office building? Just one of 19 properties now frozen by British authorities.
The UK’s Role in the Crackdown
Britain didn’t just watch from the sidelines. The UK Foreign Office sanctioned Chen Zhi and the Prince Group as part of a joint operation with US authorities, effectively locking them out of the UK financial system.
UK Foreign Secretary Yvette Cooper said the network was “ruining the lives of vulnerable people and buying up London homes to store their money.” The frozen assets include:
- A £100m central London office building
- A £12m mansion in North London
- 17 flats across the city
Four businesses tied to the alleged scams — The Prince Group, Jin Bei Group, Golden Fortune Resorts World, and Byex Exchange — have also been sanctioned.
What Happens Next?
Chen Zhi remains at large. If convicted, he faces up to 40 years in prison.
The US government now holds 127,271 Bitcoin, making this the biggest crypto seizure in history. For context, that’s roughly 0.6% of all Bitcoin ever mined.
Fraud Minister Lord Hanson summed it up: “Fraudsters prey on the most vulnerable by stealing life savings, ruining trust, and devastating lives. We will not tolerate this.”
Key Takeaways
This case highlights the dark side of crypto’s borderless nature. When scams operate across continents and currencies, they’re harder to track — but not impossible. The US-UK partnership shows what coordinated enforcement can achieve. If you’re investing in crypto, stay skeptical and verify everything.
Protect yourself from scams. Never send funds to someone you’ve only met online, and if an investment sounds too good to be true, it probably is.
FAQ
Q1: How much Bitcoin did the US government seize?
A: The US seized approximately 127,271 Bitcoin, worth around $14bn. This is the largest Bitcoin seizure in history and represents a significant chunk of the cryptocurrency’s total supply.
Q2: Who is Chen Zhi?
A: Chen Zhi is a UK-Cambodian national and alleged founder of the Prince Group. He’s accused of masterminding a massive crypto scam involving forced labour camps and has been charged with wire fraud conspiracy and money laundering.
Q3: What is a forced labour scam compound?
A: These are prison-like facilities where workers are trafficked under false job promises, then forced to run online scams targeting victims worldwide. They operate under threat of torture and abuse, with workers unable to leave.
Q4: How did the UK respond to this case?
A: The UK sanctioned Chen Zhi and the Prince Group, freezing 19 London properties worth over £100m. This locks the network out of Britain’s financial system and prevents further money laundering through UK real estate.
Q5: What should I do if I’m approached with a crypto investment opportunity?
A: Be extremely cautious. Never send cryptocurrency to someone you’ve only met online, verify the legitimacy of any investment platform independently, and remember that legitimate investments don’t promise guaranteed returns. If it feels off, trust your instincts.
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Effective Date: 15th July 2025
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