{"id":104726,"date":"2025-10-14T16:02:52","date_gmt":"2025-10-14T16:02:52","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=104726"},"modified":"2025-10-14T16:02:52","modified_gmt":"2025-10-14T16:02:52","slug":"u-s-to-seize-127271-bitcoin-worth-14-billion-linked-to-massive-southeast-asia-scam","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=104726","title":{"rendered":"U.S. To Seize 127,271 Bitcoin Worth $14 Billion Linked to Massive Southeast Asia Scam"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

U.S. To Seize 127,271 Bitcoin Worth $14 Billion Linked to Massive Southeast Asia Scam<\/a><\/p>\n

<\/div>\n

The U.S. government is moving to seize 127,271 BTC, valued at roughly $14 billion, tied to a sprawling online investment scam run by Chinese \u00e9migr\u00e9 Chen Zhi, 38, and his Cambodia-based Prince Group Transnational Criminal Organization.<\/p>\n

The action, announced<\/a> Monday by the U.S. Treasury\u2019s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN), comes as part of a sweeping crackdown on transnational cybercriminal networks and scams targeting U.S. and allied citizens.\u00a0<\/p>\n

Chen Zhi, also known as \u201cVincent Chen,\u201d had built a multi-billion-dollar empire in Cambodia through online scams that lure victims into fraudulent investment schemes known as \u201cpig butchering\u201d scams.\u00a0<\/p>\n

Victims are cultivated over months and persuaded to deposit funds into fake investment platforms.<\/p>\n

Pig-butchering scam details<\/h2>\n

According to the indictment<\/a>, filed in the Eastern District of New York, Chen and his co-conspirators lured victims worldwide into fake crypto platforms, using social media and messaging apps to build trust before stealing their funds.\u00a0<\/p>\n

The network allegedly operated out of heavily guarded \u201cscam compounds\u201d in Cambodia, where workers were forced and coerced into running the schemes.<\/p>\n

Prosecutors claim the operation laundered billions in illicit proceeds through shell companies, real estate, gambling ventures, sextortion, and large-scale Bitcoin mining facilities in Asia and the United States. <\/p>\n

The U.S. government formally alleged that Chen\u2019s network moved and concealed at least 127,000 bitcoin, valued at billions of dollars, across numerous digital wallets.<\/p>\n

Some speculate that the 127,271 BTC were reportedly<\/a> stolen in 2020 and tied to the LuBian mining operation. The BTC have sat idle ever since, with the U.S. seeking forfeiture from the defendant.\u00a0<\/p>\n

But the U.S. Justice Department confirmed<\/a> the funds are reportedly in U.S. possession and didn\u2019t explain how they were recovered or transferred. If this is true, the US government would now hold 325,283 BTC, worth over $37 billion.\u00a0<\/p>\n

\n

JUST IN: US government will seek forfeiture of 127,271 #Bitcoin<\/a> worth $14.1 billion tied to pig butchering scam pic.twitter.com\/wtA85aacjN<\/a><\/p>\n

\u2014 Bitcoin Magazine (@BitcoinMagazine) October 14, 2025<\/a>\n<\/p><\/div>\n

In March, President Trump signed<\/a> an Executive Order creating a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile to centralize government-held crypto. The Reserve, including the $14 billion in seized bitcoin at the time, would be held as a store of value and not sold.<\/p>\n

Theoretically, if the 127,271 bitcoins from this scam were added to the Reserve, they would remain unsold.<\/p>\n

Large-scale corruption and abuse<\/h2>\n

The indictment also describes a web of corruption and violence underpinning the enterprise, including bribes to foreign officials, threats, and physical abuse to maintain control over workers and protect the organization.<\/p>\n

Chen faces charges of conspiracy to commit wire fraud and conspiracy to launder money, both carrying potential decades-long prison sentences.\u00a0<\/p>\n

Prosecutors are seeking forfeiture of the bitcoin and crypto holdings and other assets tied to the alleged crimes.<\/p>\n

The United Kingdom\u2019s Foreign, Commonwealth, and Development Office (FCDO) coordinated<\/a> parallel sanctions on Chen Zhi, Prince Holding Group, and key associates.<\/p>\n

Additional laundering sanctions and details\u00a0<\/h2>\n

In addition to the Bitcoin seizure, Treasury finalized a rule severing Huione Group, a Cambodia-based financial services conglomerate, from the U.S. banking system, according to the U.S. Treasury press release.<\/p>\n

The company reportedly laundered billions in virtual currency stolen by DPRK-linked hackers and Southeast Asia-based scam networks, including at least $300 million in other cybercrime proceeds.<\/p>\n

OFAC\u2019s sanctions target 146 entities and individuals tied to Prince Group TCO, including shell companies, real estate firms, banks, and operators of luxury resorts in Cambodia and Palau.\u00a0<\/p>\n

The sanctions also extend to facilitators like Palau-based Rose Wang, who helped Chen establish commercial operations abroad, including a 99-year lease for a luxury resort on Ngerbelas Island.<\/p>\n

Monday\u2019s coordinated U.S.\u2013U.K. action follows earlier Treasury and FinCEN efforts targeting cybercriminals in Southeast Asia, including sanctions against Burmese and Cambodian operators and DPRK-linked money laundering networks.<\/p>\n

This post U.S. To Seize 127,271 Bitcoin Worth $14 Billion Linked to Massive Southeast Asia Scam<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Micah Zimmerman<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine U.S. To Seize 127,271 Bitcoin Worth $14 Billion Linked to Massive Southeast Asia Scam The U.S. government is moving to seize 127,271 BTC, valued at roughly $14 billion, tied to a sprawling online investment scam run by Chinese \u00e9migr\u00e9 Chen Zhi, 38, and his Cambodia-based Prince Group Transnational Criminal Organization. The action, announced […]<\/p>\n","protected":false},"author":0,"featured_media":104727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-104726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/104726"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=104726"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/104726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/104727"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=104726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=104726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=104726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}