Global Crypto Fraud Empire Exposed as Authorities Seize $15B in Bitcoin and Cambodia Shuts Prince Bank

Extradition of Prince Group Founder Triggers Largest Crypto Seizure Ever and Regional Financial Fallout

TL;DR

• Authorities linked to the case seized about 127,271 Bitcoin worth roughly $15 billion, the largest crypto seizure on record.
• Chen Zhi, founder of Prince Group, was extradited from Cambodia to China as part of a sweeping crackdown on transnational crypto fraud and forced labor scam networks.
• Cambodia ordered the liquidation of Prince Bank, marking a rare and severe response to systemic risks tied to alleged crypto-enabled financial crimes.

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A sprawling international crypto fraud case reached a critical inflection point in early January 2026 after Cambodian authorities extradited Chen Zhi, the founder and chairman of Prince Holding Group, to China, setting off a chain reaction that included the largest cryptocurrency seizure in history and the forced liquidation of a licensed bank. The case centers on allegations that Chen oversaw a global network of crypto-related scams, money laundering operations, and forced labor compounds that collectively generated billions of dollars in illicit proceeds, while exploiting volatility in crypto price movements and investor trust across borders.

U.S. prosecutors disclosed that law enforcement agencies seized approximately 127,271 Bitcoin—valued at around $15 billion at the time—from wallets allegedly controlled by Chen and his associates. The seizure, executed in October 2025 but publicly detailed as the case unfolded, dwarfs all previous crypto confiscations and underscores how blockchain transparency can still intersect with large-scale criminal finance. Investigators said the funds were tied to long-running “pig-butchering” scams, a form of fraud where victims are groomed over weeks or months, often through social media or messaging apps, before being persuaded to transfer crypto assets under the guise of investment opportunities. Victims reportedly tracked fake dashboards showing manipulated crypto price data and fabricated gains designed to mirror legitimate crypto price index movements, creating an illusion of credibility while funds were quietly siphoned away.

Court filings and law enforcement statements described Chen as the central figure behind a transnational criminal organization operating across Asia, North America, and Europe. U.S. authorities charged him with wire fraud conspiracy and money laundering conspiracy, alleging that hundreds of thousands of victims worldwide were defrauded, including more than 250 Americans. Individual losses ranged from tens of thousands of dollars to more than $400,000 per victim, with total damages estimated in the multibillion-dollar range. Investigators also linked the network to forced labor operations, where trafficked workers were allegedly confined in guarded compounds in Cambodia and coerced into running online scams targeting global investors, often during periods of heightened market volatility reflected in shifting coin market cap figures.

The fallout extended beyond crypto wallets and courtrooms into the traditional financial system. Following Chen’s extradition, Cambodia’s central bank ordered the liquidation of Prince Bank, a regulated lender founded by Chen that had operated as part of the broader Prince Group ecosystem. Regulators said the decision was taken to safeguard financial stability and protect depositors after the bank became entangled in international investigations. Liquidators were appointed to oversee the process, with authorities emphasizing that depositors could still access funds subject to verification, while borrowers remain obligated to repay outstanding loans. The move sent shockwaves through Cambodia’s financial sector, highlighting the risks that can emerge when conventional banking structures intersect with opaque crypto-linked capital flows.

Chen’s extradition itself reflected complex geopolitical and legal calculations. Despite being indicted in the United States, he was deported to China after Cambodia revoked his citizenship in late 2025, citing cooperation in combating transnational crime. The decision effectively bypassed U.S. extradition efforts, as Cambodia lacks a formal extradition treaty with Washington, and underscored the growing role of regional law enforcement coordination in tackling crypto-enabled fraud. Chinese authorities have indicated that further prosecutions and asset recovery efforts are underway, while U.S. agencies continue to pursue related cases against associates and facilitators across multiple jurisdictions.

This article has been refined and enhanced by ChatGPT.