BROOKLYN: In an indictment unsealed on Tuesday, federal prosecutors brought significant charges against Chen Zhi, the chairman of Cambodia’s Prince Holding Group, for wire fraud conspiracy and money laundering conspiracy. The US government simultaneously announced the seizure of more than ₹12,366 Crore ($14 billion) in bitcoin linked to the scheme. Prosecutors described the operation, often referred to as a “pig butchering” scam, as “one of the largest investment fraud operations in history.” Chen, also known as “Vincent,” allegedly bragged at one point that the scam was pulling in an astonishing ₹265 crores ($30 million) a day. The Treasury Department noted that Prince Holding Group was a “dominant player” in Southeast Asia-based scams, which cost Americans at least ₹8879 Crore ($10 billion) last year.
Forced Labor: The Engine of the Scam
A central and disturbing aspect of the indictment is the alleged use of forced labor to carry out the fraud. According to prosecutors, Prince Holding Group built at least 10 compounds in Cambodia where workers, often migrants, were held against their will. These compounds functioned as forced labor camps, surrounded by high walls and barbed wire. Lured with promises of high-paying jobs, workers were instead held captive, isolated, and sometimes beaten. They were forced to contact thousands of victims through social media or online messaging platforms, building rapport to entice them to transfer cryptocurrency with hopes of big investment returns. Photos in Chen’s indictment reportedly showed injured workers, including one with a “bloody gash on his face.” One compound was associated with the group’s Jinbei Casino Hotel, while another was known as “Golden Fortune.”
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Luxury Spending and High-Level Connections
The proceeds of the massive fraud were allegedly laundered and used to fund an extravagant lifestyle. Prosecutors detailed that the ill-gotten gains were funneled into Prince Holding Group businesses and shell companies, and spent on items like yachts, jets, a Picasso painting, luxury travel, watches, and holiday homes, including a Rolex watch for an executive’s spouse. The financial and real estate conglomerate has been sanctioned by US and British authorities, and the US Treasury Department has declared it a transnational criminal organisation. Chen’s connections run deep in Cambodia’s elite; he has served as an advisor to both current Prime Minister Hun Manet and his father, former prime minister Hun Sen, and holds the honorary title neak oknha, equivalent to an English lord.
The Global Impact and Potential Justice
Transnational crime experts, like Jacob Daniel Sims of Harvard University’s Asia Centre, view Prince Holding Group as an “essential part of the scaffolding” enabling global cyber-scamming, with Chen being a “central pillar” of a criminal economy intertwined with Cambodia’s ruling government. The US move to indict and sanction aims to “fundamentally change the risk calculus” for global banks and investors dealing with Cambodian elite money. Chen, a native of China, remains at large. If convicted, he faces up to 40 years in prison. The US hopes to use the 127,271 seized bitcoin, valued at approximately ₹9 Crores ($113,000 each) (though fluctuating), to repay victims, including one individual who was scammed out of more than ₹35 crores ($400,000) in cryptocurrency.
