The US government has seized over $14bn (£10.5bn) in Bitcoin and charged the founder of a Cambodian business empire with allegedly masterminding a massive cryptocurrency scam.
UK and Cambodian national Chen Zhi was charged on Tuesday in New York for allegedly engaging in a wire-fraud conspiracy and running a money-laundering scheme.
Mr. Chen's businesses were sanctioned by the US and UK as part of a joint operation. The UK government says it has frozen assets owned by his network, including 19 properties in London, one of which is worth nearly £100m ($133m).
US prosecutors describe this operation as one of the biggest financial takedowns in history and the largest seizure of Bitcoin, with approximately 127,271 Bitcoin being held by the US government.
Mr. Chen, who remains at large, faces serious charges, accused of running a sprawling cyber-fraud empire under the Prince Group. This multi-national company's website claims to engage in legitimate business, but the DOJ alleges it operates one of Asia's largest criminal organizations.
Victims were duped online into transferring cryptocurrency based on false promises of profit-generating investments. The court documents reveal that Mr. Chen supervised scam compounds based in Cambodia, managing profits and organizing operations through extensive networks of mobile phone numbers used in call centers.
Details of the scams point to horrific conditions for victims, many of whom were trafficked and forced to perpetrate the fraud under threats of violence. The Department of Justice has outlined a broader picture of exploitation and abuse linked to the operations of the Prince Group.
If convicted, Mr. Chen faces a maximum penalty of 40 years in prison, illustrating the severity and impact of his alleged crimes on countless victims worldwide.
