The world's largest crypto asset seizure case: The US and UK join forces to combat Cambodia's "Pig-butchering scams" empire, freezing 127,000 Bitcoins!

U.S. federal prosecutors, the Treasury Department, and British authorities announced that, in a joint operation targeting international online scams, they seized the largest amount of Crypto Assets in history, involving up to 127,000 Bitcoins. The operation specifically targeted the multinational conglomerate in Cambodia—Prince Holding Group and its CEO Chen Zhi. Court documents show that the group is a highly sophisticated “Pig-butchering scams” and human trafficking network, laundering billions of dollars through hundreds of shell companies, Crypto Assets exchanges, and Mining operations worldwide, while forcing thousands of victims to engage in scam activities in Cambodian zones.

Transnational Crackdown: Chairman of BCH Holdings Group Charged with Involvement in “Most Complex” Asian Fraud Network

The U.S. Department of Justice (DOJ) and the U.S. Treasury unveiled a coordinated operation against a Cambodian crime syndicate in the Eastern District Court of New York, exposing a vast criminal empire that combines fraud, money laundering, and human trafficking.

· The Ministry of Justice seeks to confiscate 127,000 Bitcoins

According to unsealed court documents, U.S. authorities are seeking to seize 127,000 Bitcoins associated with Chen Zhi and his associates' wallets. The Department of Justice described the network as “one of the most complex transnational fraud operations in Asia,” which laundered billions of dollars through shell companies, Crypto Assets Mining operations, and mainstream CEXs around the world.

· The Ministry of Finance implements comprehensive sanctions

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) simultaneously announced sanctions against 146 individuals and entities associated with the BCH group, classifying them as a transnational criminal organization (TCO) engaged in fraud, extortion, and human trafficking. Additionally, the Financial Crimes Enforcement Network (FinCEN) took action against Cambodia's Huione Group, accusing it of laundering at least $4 billion in illegal proceeds, including funds related to cyber theft associated with North Korea.

Cambodian Business Tycoon Transforms into a Global “Pig-butchering scams” Criminal Enterprise

38-year-old Chinese businessman Chen Zhi founded BCH Holdings Group in 2015. Although the group's official business covers real estate, finance, and the hotel industry, prosecutors point out that it has evolved into a criminal enterprise built on deception and coercion.

· Human trafficking and forced labor

Court documents show that BCH Holdings Group lured thousands of workers to Cambodia with false job opportunities, subsequently trapping them in heavily guarded zones. In these zones operating under names such as Jin Bei Casino and Golden Fortune Resorts, victims were forced to engage in “Pig-butchering scams.”

· Pig-butchering scams operation model

“Pig-butchering scams” are a form of long-term online fraud where scammers cultivate trust over an extended period, luring target victims into believing in a fake crypto assets trading platform. Once the victims deposit funds, these fraudulent websites disappear.

· Global money laundering network

U.S. prosecutors stated that the proceeds of the fraud were laundered through a complex network composed of over 100 shell and holding companies worldwide. The ill-gotten gains were then circulated through mainstream CEX and Mining operations, ultimately being converted into Bitcoin and stored in private wallets controlled by Chen Zhi and his accomplices. Investigators traced at least $18 million coming from over 250 American victims' funds between May 2021 and August 2022, flowing through shell entities operating in Brooklyn and Queens, New York, which is just a small part of their global billion-dollar operation.

Industry Joint Action: Crypto Companies Assist in Combating Billion-Dollar Fraud Losses

This crackdown highlights the increasing intersection of human trafficking and crypto assets scams in Southeast Asia. U.S. Treasury Secretary Scott Bessent stated that these measures are a “global response” to the wave of online investment scams that have caused total losses of over $16 billion for Americans.

· The losses from “Pig-butchering scams” have surged.

This large-scale crackdown is based on ongoing global efforts against “Pig-butchering scams.” U.S. data shows that losses from “Pig-butchering scams” surged to $3.6 billion in 2024, a 40% increase from the previous year. Authorities have pointed out that these networks are merging encryption fraud, organized crime, and human trafficking on an unprecedented scale.

· The crypto industry actively cooperates with law enforcement.

Crypto Assets companies play a key role in combating such crimes:

The stablecoin issuer Tether has collaborated with Chainalysis, mainstream exchanges, and local law enforcement to freeze nearly $50 million of USDT.

The leading CEX has recently joined T3+ (a global anti-crime alliance established by TRON, Tether, and TRM Labs), which has frozen over $250 million in illegal assets.

The leading CEX in the United States also assisted in tracking the stolen funds related to international human trafficking networks.

Conclusion

The recent actions by the U.S. Department of Justice and the Department of the Treasury against the Cambodian Prince Holding Group not only represent the largest seizure of crypto assets to date but also mark a milestone in global law enforcement cooperation, clearly exposing the dark reality of Southeast Asian transnational criminal organizations utilizing “Pig-butchering scams” for large-scale fraud, money laundering, and brutal human trafficking. The massive confiscation of 127,000 Bitcoins sends a strong warning signal to organizations attempting to use decentralized assets for criminal activities. As cooperation between crypto companies and law enforcement agencies becomes increasingly close, this global crackdown on “Pig-butchering scams” is entering a new phase aimed at protecting investors and curbing this emerging complex crime pattern.

Note: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions cautiously.