The head of a “pig butchering” fraud scheme has been charged for his role in what’s considered to be the “largest forfeiture action in U.S. history.”
On Oct. 14, federal prosecutors in Brooklyn, New York, unsealed an indictment charging 37-year-old Chen Zhi with his involvement in a cryptocurrency scam scheme that’s based out of Cambodia.
Zhi, who’s also known as “Vincent,” is alleged to be the leader of the Prince Holding Group. He’s also been accused of directing Prince Group’s operation of forced-labor scam locations around the country as well as utilizing violence to discipline his employees. He remains at large at the time of this writing.
“Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will,” said U.S. Attorney Joseph Nocella.
According to a press release, the Prince Group, which operates in over 30 countries, had employees against their will “engaged in cryptocurrency investment fraud schemes, known as ‘pig butchering’ scams.’”
These scams tricked people into transferring cryptocurrency into accounts that were controlled by Prince Group with the promise that their digital currency would be used to invest and generate profits, according to the Department of Justice.
“In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators,” reads the release about the indictment. “The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds.”
Zhi and the top executives within the Prince Group network have been accused of using political influence in multiple countries to protect their criminal enterprise and paying bribes to public officials to avoid being targeted by law enforcement.
At its peak, prosecutors allege that Prince Group made up to $30 million per day. $15 billion worth of bitcoin was allegedly held in cryptocurrency wallets that were controlled by Zhi.
The Prince Group has now been designated by the Treasury Department as a “transnational criminal organization.”