Cambodian Crypto Scam Kingpin Loses $15B in Historic US Bitcoin Seizure

 

U.S. Seizes $15 Billion in Bitcoin from Cambodian “Pig Butchering” Crypto Scam Kingpin Chen Zhi

In a landmark action highlighting the growing capabilities of global crypto law enforcement, the United States has seized an estimated $15 billion worth of Bitcoin connected to the infamous Cambodian “pig butchering” scam operated by Chen Zhi, the founder of Prince Holding Group. The seizure marks one of the largest recoveries of stolen cryptocurrency in history and underscores the risks of large-scale crypto fraud.

The Rise of Chen Zhi and His Crypto Empire

Chen Zhi, a Cambodian entrepreneur with business operations spanning over 30 countries, appeared to run legitimate enterprises in real estate, finance, and technology. However, investigations reveal that he was the mastermind behind one of Southeast Asia’s largest cyber-fraud networks. Known colloquially as the “pig butchering scam kingpin,” Chen and his associates allegedly orchestrated elaborate schemes to trick global investors into fake cryptocurrency investments.

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The term “pig butchering” refers to a scam methodology where perpetrators groom victims over extended periods, building trust before persuading them to invest large sums in fraudulent digital assets. According to U.S. authorities, Chen’s network operated multiple “fraud industrial parks” since 2015, creating sophisticated setups to deceive investors and funnel billions in ill-gotten gains into untraceable cryptocurrency wallets.

Prosecutors describe Chen as the architect of a sprawling cyber-fraud empire, leveraging bribery, coercion, and violence against employees. The network reportedly funneled stolen funds into luxury assets, including yachts, private jets, and high-value art like Picasso paintings. Despite the U.S. seizure, Chen remains at large, benefiting from dual U.K.–Cambodia citizenship and entrenched political connections, making the timing of his potential arrest uncertain.

The Money Laundering Machine: Huione Group

A critical tool in Chen’s fraudulent operation was the Huione Group, a fintech and e-commerce system that included HuionePay and Telegram-based marketplaces. The network allegedly processed at least $4 billion between August 2021 and January 2025, blending funds from the pig butchering scam with proceeds from other illicit activities, including cyber theft linked to North Korea.

The U.S. Treasury intervened by cutting Huione’s access to the American financial system, effectively freezing a major avenue through which Chen’s network laundered stolen funds. Analysts suggest that these regulatory moves, coupled with blockchain forensic investigations, made it increasingly difficult for Chen to conceal his activities.

Bitcoin Seizure: How Authorities Captured $15 Billion

The $15 billion worth of Bitcoin, representing approximately 127,000 BTC, was held in non-custodial wallets under Chen’s control. U.S. investigators leveraged vulnerabilities in Lubian, a cryptocurrency mining pool that had been used to launder stolen funds. At one point, Lubian accounted for roughly six percent of all Bitcoin mining activity globally.

Chen’s network attempted to “clean” the coins by funneling them through mining operations, a process designed to obscure their origin. However, blockchain analytics platforms, including Arkham, traced the transactions, linking the funds directly to Chen’s operation. Weaknesses in Lubian’s key-generation system, along with investigative techniques such as mnemonic recovery and targeted social engineering, allowed authorities to gain control of the private keys needed to seize the cryptocurrency.

This massive recovery represents one of the largest-ever crypto asset seizures by a government, underscoring the capacity of law enforcement to track, trace, and reclaim stolen digital assets even years after the initial crime.

The Lubian “Theft” Mystery: A Cover-Up Strategy

In December 2020, Lubian reported that 127,426 BTC—approximately $3.5 billion at the time—had been stolen. The pool subsequently shut down in February 2021, and the coins disappeared from public view for years. Blockchain tracking eventually revealed that these funds were moved into a small number of centralized wallets, which were later consolidated in July 2024. Investigators determined that these funds were directly linked to Chen Zhi’s pig butchering operation.

The apparent theft in 2020 may have been a deliberate attempt by Chen’s network to hide the origins of the cryptocurrency and maintain the appearance of operational normalcy. U.S. authorities’ ability to unravel this complex scheme demonstrates the increasing sophistication of blockchain forensic investigations.

Implications for Crypto Regulation and Enforcement

The Chen Zhi case has significant implications for global cryptocurrency markets. It demonstrates that even high-value, long-dormant crypto holdings can be identified, traced, and recovered with the right tools and expertise. This seizure serves as a warning to potential fraudsters that anonymity in cryptocurrency is not absolute and that law enforcement agencies are rapidly advancing their investigative techniques.

Furthermore, the case highlights the importance of international cooperation in combatting digital asset fraud. By combining blockchain analytics with financial intelligence, regulatory oversight, and targeted intervention, authorities can disrupt transnational criminal networks that exploit the relative anonymity of cryptocurrency.

The recovery also underscores the growing regulatory scrutiny facing crypto platforms and mining operations. Firms facilitating the movement of digital assets may be increasingly held accountable for ensuring compliance with anti-money laundering (AML) standards, as demonstrated by the role of Lubian in Chen Zhi’s laundering strategy.

The Human Toll and Investor Impact

While authorities have successfully recovered the assets, countless investors remain victims of Chen’s elaborate scheme. The pig butchering scam targeted individuals globally, from retail investors to high-net-worth individuals, exploiting trust and financial literacy gaps. Beyond financial loss, the psychological impact on victims—who were often groomed over extended periods—cannot be understated.

Investor advocacy groups have called for stricter monitoring of crypto operations and for educational campaigns to help individuals recognize and avoid emerging scam methodologies. The Chen Zhi seizure highlights the critical need for vigilance in cryptocurrency investment and the importance of secure custodial practices.

Looking Ahead: Enforcement, Regulation, and Industry Lessons

Chen Zhi’s ongoing freedom, despite the massive asset seizure, underscores a critical challenge in digital asset enforcement: apprehending individuals who operate across jurisdictions with multiple citizenships and political protections. Nonetheless, the successful recovery of $15 billion demonstrates that the digital trail left by blockchain transactions is a powerful tool for authorities.

Regulators and industry participants alike are likely to take note. The case will influence AML compliance frameworks, exchange oversight, and investor protection strategies across Asia and globally. As cryptocurrency adoption grows, law enforcement and regulatory agencies will continue to refine their strategies to combat complex financial crimes, bridging the gap between traditional legal systems and decentralized financial ecosystems.

Conclusion

The U.S. seizure of $15 billion in Bitcoin from Chen Zhi’s Cambodian pig butchering network represents a watershed moment in the global fight against cryptocurrency fraud. It proves that even sophisticated, multi-country criminal operations can be disrupted with advanced analytics, cross-border cooperation, and targeted intervention. While Chen Zhi remains free, the recovery of his digital assets sends a clear message to scammers worldwide: blockchain may facilitate innovation, but it also leaves an indelible trail that can—and will—be followed by law enforcement.

As the cryptocurrency industry continues to mature, the Chen Zhi case will serve both as a cautionary tale and as a benchmark for regulatory and investigative effectiveness, signaling that accountability in digital finance is becoming a global reality.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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