(qlmbusinessnews.com . Wed 15th Oct, 2025) London, UK —
Massive Cryptocurrency Scam Unraveled: Chen Zhi's Empire Faces Global Sanctions
The UK and US authorities have collaborated in a monumental crackdown on a significant cryptocurrency scam, resulting in over $14bn (£10.5bn) of seized bitcoin. The operation targeted Chen Zhi, a dual citizen of the UK and Cambodia, and the brainchild behind the Prince Group, a conglomerate alleged to have orchestrated an extensive crypto fraud.
Chen Zhi faces accusations in New York of wire fraud conspiracy and operating a sophisticated money laundering operation. Alongside personal charges, his enterprise has faced sanctions from both the UK and US governments. Notably, the UK has immobilised assets linked to Chen, including 19 London properties, with one valued close to £100m.
The Prince Group, however, has yet to respond to inquiries for comment.
US prosecutors have deemed this operation as historically significant, marking it as the most considerable financial dismantling to date and the largest bitcoin seizure, involving approximately 127,271 bitcoins.
Chen allegedly led a “sprawling cyber-fraud empire,” with his conglomerate, which publicly lists its involvement in sectors like property development and consumer services, accused by the Department of Justice (DOJ) of being a façade for one of Asia's vast transnational criminal networks.
According to the DOJ, the scam involved contacting potential victims online, deceiving them into transferring cryptocurrency under the guise of lucrative investment opportunities. Court documents revealed that Chen masterminded at least ten scam compounds in Cambodia, designed specifically to maximise victim outreach.
The scam operations, detailed in the court filings dated 8 October, were highly orchestrated, involving “phone farms” with over 1,250 mobile phones managing 76,000 social media accounts to perpetrate scams.
The DOJ documents also highlighted training materials for scam operatives, advising on social media profile authenticity, including caution against using overly attractive profile images.
John A Eisenberg, Assistant Attorney General for National Security, condemned the Prince Group as an enterprise founded on exploitation and human suffering. He revealed that the operation trafficked workers, confining them in prison-like conditions to execute online scams targeting individuals globally.
Chen's use of the ill-gotten gains was purportedly extravagant, funding luxury travel, entertainment, and high-value purchases, including art from notable artists such as Picasso, acquired at a New York auction.
Should Chen be convicted, he could face up to 40 years in prison.
In the UK, Chen's elaborate network extended to property investments funded through businesses incorporated in the British Virgin Islands, encompassing a significant London office building and numerous residential properties.
The sanctions imposed on Chen and his enterprise by the UK, in partnership with the US, effectively excludes them from the British financial system, identifying the Prince Group as a criminal entity responsible for grave injustices and laundering money through the London property market.
UK Foreign Secretary Yvette Cooper expressed the operation as a crucial action against a dangerous transnational threat, aiming to uphold human rights and protect British nationals from such financial crimes.
Additionally, the UK foreign office highlighted that the Prince Group was involved in laundering money through various ventures, including casinos and compounds doubling as scam centres. Other businesses tied to the scam, such as the Jin Bei Group and Golden Fortune Resorts World, have faced sanctions.
An Amnesty International report pinpointed two of the sanctioned entities for utilising forced labour and torture within Cambodian scam operations, further underlining the international scale of the criminal activities. UK's Fraud Minister, Lord Hanson, reinforced the commitment to combating such predatory schemes, emphasising their unforgiving impact on victims.
The joint endeavour by UK and US authorities signifies a robust stance against international financial fraud, aiming to dismantle extensive scam networks and shield citizens from complex exploitational tactics.
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