 "US indicts UK-Cambodian business tycoon over $15 bn crypto scam, forced labour")
US authorities on Tuesday unsealed an indictment against Chen Zhi, a 37-year-old UK-Cambodian businessman, accused of running forced labour compounds in Cambodia that fuelled large-scale cryptocurrency scams. The indictment, announced by the US Department of Justice, outlines how Chen’s operations allegedly generated billions of dollars through global cyber fraud, leading to the largest asset forfeiture in US history.
The Justice Department said it has seized approximately 127,271 Bitcoin, valued at around US$15 billion. Attorney General Pam Bondi described the move as one of the most significant actions ever taken against human trafficking and cyber-enabled financial crime.
Trafficked workers forced into crypto scams
According to prosecutors, Chen, known as Vincent, founded Prince Holding Group, a multinational conglomerate that allegedly acted as a front for “one of Asia’s largest transnational criminal organisations.” The company reportedly ran forced labour sites across Cambodia, where hundreds of trafficked workers were confined in heavily guarded compounds.
Victims were allegedly coerced under threats of violence to execute “pig butchering” scams – elaborate cryptocurrency investment frauds that entrap victims through prolonged trust-building before stealing their funds. These schemes, officials said, targeted individuals worldwide and caused losses worth billions.
Authorities revealed that similar scam compounds in Cambodia, Myanmar and other regional countries lured foreign nationals, mainly Chinese, through fake job advertisements. Once inside, they were detained and forced to participate in online fraud under brutal conditions.
Since around 2015, Prince Group has expanded its operations into over 30 countries under the guise of legitimate real estate, finance and consumer businesses. Prosecutors allege Chen and senior executives used political influence and bribery to shield their activities while laundering proceeds through gambling and cryptocurrency mining operations. The illicit profits funded luxury purchases including yachts, private jets, expensive watches, vacation homes and a Picasso painting acquired from a New York auction house.
Chen faces up to 40 years in prison if convicted of wire fraud and money laundering conspiracy. In a coordinated move, British authorities froze 19 London properties linked to his network, worth over £100 million, including a £12 million mansion in North London. Sanctions also targeted Chen’s associate, Qiu Wei Ren, who holds Cambodian, Cypriot and Hong Kong citizenship.
Impact Shorts
More ShortsMeanwhile, an AFP investigation reported that scam centres in neighbouring Myanmar are expanding again despite earlier crackdowns. Authorities in China, Thailand and Myanmar had forced pro-junta militias to shut down such compounds in February, releasing about 7,000 people, mostly Chinese citizens. However, reports indicate that these operations have resumed, now using Elon Musk’s Starlink satellite system for internet access.
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