Historic Indictment and Forfeiture Action Targeting Asia's Largest Transnational Criminal Organization

Strategic Insights -

Chen Zhi, the founder and chairman of Prince Holding Group, has been charged with wire fraud conspiracy and money laundering conspiracy for directing the operation of forced-labor scam compounds across Cambodia. According to the indictment, Prince Group perpetrated fraudulent cryptocurrency investment schemes, known as "pig butchering" scams, that stole billions of dollars from victims in the United States and around the world.

Under Zhi's direction, Prince Group made enormous profits by operating scam compounds across Cambodia that perpetrated fraudulent cryptocurrency investment schemes. The schemes targeted victims around the world, including in the United States, with assistance from local networks working on Prince Group's behalf.

Key Takeaways:

  • Chen Zhi, the founder and chairman of Prince Holding Group, has been charged with wire fraud conspiracy and money laundering conspiracy for directing the operation of forced-labor scam compounds across Cambodia.
  • Prince Group perpetrated fraudulent cryptocurrency investment schemes, known as "pig butchering" scams, that stole billions of dollars from victims in the United States and around the world.
  • The schemes targeted victims around the world, including in the United States, with assistance from local networks working on Prince Group's behalf.
  • Prince Group's schemes reportedly made billions of dollars in profits by forcing hundreds of workers to work in compounds in Cambodia and execute the scams.
  • The defendant maintained records associated with each scam compound, including ledgers tracking profits and which fraudulent schemes were run out of which rooms.
  • The defendant used violence against individuals within the forced labor camps and possessed images of Prince Group's violent methods, including photographs depicting beatings and other methods of torture.
  • Chen Zhi and his co-conspirators laundered the proceeds of the fraudulent schemes through professional money laundering operations and through Prince Group's own network of ostensibly legal business enterprises.
  • The defendant maintained diagrams recording the process by which some of the unpaid cryptocurrency was laundered and boasted to others of Prince Group's mining businesses that "the profit is considerable because there is no cost."
  • The investigation was conducted by the FBI New York Joint Asian Criminal Enterprise Task Force with assistance from the FBI's Virtual Asset Unit.
  • In parallel with today's actions by the Department of Justice, the Department of the Treasury today designated Prince Group as a transnational criminal organization and announced sanctions against the defendant and multiple associated individuals and entities.

Statistics:

  • The charges in the indictment allege that Prince Group perpetrated fraudulent cryptocurrency investment schemes that stole billions of dollars from victims in the United States and around the world.
  • According to the FBI Internet Crime Complaint Center's 2024 Internet Crime Report, cryptocurrency investment fraud caused more than $5.8 billion in reported losses in 2024 alone.
  • The indictment alleges that Prince Group made enormous profits by operating scam compounds across Cambodia that perpetrated fraudulent cryptocurrency investment schemes.
  • The defendant is at large and faces a maximum sentence of 40 years' imprisonment if convicted.

Sources:

  • United States Attorney's Office for the Eastern District of New York
  • United States Department of Justice
  • FBI Internet Crime Complaint Center
  • Department of the Treasury
  • United Kingdom's Foreign, Commonwealth and Development Office