Alleged cryptocurrency scam boss arrested in Cambodia after seizure of R$ 62 billion in Bitcoin

Source: PortaldoBitcoin Original Title: Alleged Cryptocurrency Scam Boss Arrested in Cambodia After Ransom of R$ 62 Billion in Bitcoin Original Link: The alleged mastermind of a scam network that stole billions of dollars in assets from individuals in the United States and around the world was arrested on Tuesday (6) in Cambodia and extradited to China, according to international reports.

Chen Zhi, a Cambodian citizen and founder and president of Prince Holding Group, was charged in October with conspiracy to commit electronic fraud and conspiracy to launder money for his role in operating complex scam schemes that stole billions of dollars from victims.

As part of the scheme, Zhi’s conglomerate kept people against their will in complexes and forced them to carry out cryptocurrency fraud schemes, sometimes called “pig butchering” (abate de porco), where they built relationships with unsuspecting users before stealing their funds. These scams are named after the process of fattening a pig before slaughter.

Zhi’s scam network accumulated more than 127,271 bitcoins in stolen resources, valued at approximately US$ 11.6 billion (R$ 62 billion) at current prices. These funds, currently under U.S. government custody, are being claimed by the Department of Justice as part of the largest civil seizure and confiscation action in the department’s history.

Along with the charges filed in October, the Department of Justice designated Prince Group as a transnational criminal organization and imposed sanctions on Zhi and other associated individuals.

The indictment detailed that Zhi’s group trafficked hundreds of workers to various complexes in Cambodia to operate their scam network. He directly managed the complexes and kept detailed records of each, as well as guided associates to use cryptocurrencies to help hide the group’s profits.

Part of the proceeds was used by Zhi and his associates for luxury travel and extravagant purchases, including a Pablo Picasso painting.

In addition to Zhi’s scams, which account for nearly US$ 12 billion in seized funds related to illicit activities, a Chainalysis report indicates that on-chain cryptocurrency balances linked to criminal activities exceed US$ 75 billion.

Illicit entities held nearly US$ 15 billion in funds on their own as of last July — an increase of over 300% since 2020 — with most coming from stolen resources, according to the report.