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Chainalysis: US and UK Target US$15B Crypto Crime Network Tied to Prince Group and Chen Zhi
- The US and UK jointly sanctioned the Prince Group, founder Chen Zhi, and related entities for orchestrating large-scale crypto scams and laundering billions.
- The DOJ filed a civil forfeiture covering 127,271 BTC worth AU$23.03 billion, calling it the largest in department history, while unsealing charges against Chen Zhi.
- The Prince Group allegedly ran Cambodian compounds exploiting trafficked workers to run “pig butchering” scams, with funds laundered via crypto, casinos, and luxury assets.
The United States and United Kingdom have launched a coordinated enforcement campaign against the Prince Group Transnational Criminal Organization, its founder Chen Zhi, and several affiliated firms involved in crypto-related fraud and laundering schemes.
The US Department of the Treasury’s OFAC, FinCEN, and the UK’s Foreign Office announced sanctions against entities including Huione Group and Byex Exchange, both accused of facilitating scams and laundering billions of dollars. Huione Group has been identified as a primary money laundering concern under Section 311 of the USA PATRIOT Act, effectively severing its access to the US financial system.
Simultaneously, the US Department of Justice (DOJ) filed a civil forfeiture action covering 127,271 Bitcoin worth AU$23.03 billion linked to the Prince Group’s operations, in what officials describe as the largest forfeiture in department history. The DOJ also unsealed charges against Chen Zhi for wire fraud conspiracy and money laundering.
Related: Amundi Eyes Bitcoin ETN Launch, Signaling Major Shift in European Institutional Adoption
Trafficked Workers Forced into Crypto Scams
Investigators say the Prince Group ran multiple compounds across Cambodia where trafficked workers were forced to carry out crypto scams and romance frauds, a practice known as “pig butchering”. Conditions in these centres were reportedly violent, with detainees beaten or electrocuted when attempting escape.
The group’s Jin Bei Casino and Golden Fortune Resorts World in Cambodia allegedly acted as hubs for these operations. Illicit proceeds were laundered through cryptocurrency wallets, online gambling operations, and luxury assets in the U.K. and beyond. British authorities have frozen high-value properties, including a £12 million London mansion and a £95 million office building linked to Chen Zhi.
Assistant Attorney-General John Eisenberg described Chen as “the mastermind behind a sprawling cyber-fraud empire,” while UK Foreign Secretary Yvette Cooper said the sanctions are a decisive step in dismantling global scam networks.
.Related: NYC Launches First-Ever Mayoral Office for Digital Assets and Blockchain
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
