🕵️♂️ The U.S. Department of Justice has carried out one of the largest anti-crypto fraud operations in history. A federal court in New York ordered the confiscation of 127,200 bitcoins (worth about $15 billion) from businessman Chen Zhi — a citizen of Cambodia and the United Kingdom, accused of running an international crypto scam network.
How the Scheme Worked
Investigators found that Chen Zhi used a fraudulent strategy known as Pig Butchering — a method that has become one of the most popular tools of crypto scammers in recent years. The scheme is simple: fraudsters create fake crypto platforms and accounts, promising users high returns on investments.
At first, clients are “fattened up” — shown small profits to build trust. But once a victim invests a large sum, the scammers disappear, and the website or app vanishes.
According to the DOJ, Zhi used resources from his Prince Holding Group conglomerate — which operates in construction, finance, and consumer goods — to run the fraud. The investigation also revealed that the company’s gambling division and forced labor were used to recruit new victims through mass calls and online messaging.
“Crypto Camps” and Forced Labor
The investigation uncovered horrifying details: Chen Zhi personally managed underground call centers where people were held against their will and forced to participate in fraudulent crypto deals. Court documents quote him instructing subordinates “not to beat workers to death” if they tried to escape.
According to the Department of Justice, the businessman laundered millions of dollars through fake mining schemes, calling this method “brilliant” because “there are no expenses.” He kept detailed records of his operations and even boasted about the profits from his “clean” crypto deals.
Diamonds, Yachts, and Picasso
Part of the illicit funds was spent on luxury goods — expensive watches, yachts, private jets, villas, rare collectibles, and even a Pablo Picasso painting bought at a New York auction.
Zhi stored the rest of his assets in non-custodial crypto wallets, to which only he had access. Those assets are now under U.S. government control.
U.S. Crypto Reserve and a New Strategy
The confiscation of 127,000 bitcoins became the largest in the DOJ’s history, valued at roughly $15 billion — significantly increasing the government’s digital asset holdings.
In March 2025, Donald Trump signed an order establishing the Strategic Bitcoin Reserve, where all seized crypto assets will be accumulated and used for long-term national interests. The document halts the sale of seized bitcoins and creates the reserve without taxpayer expenses.
Taking into account the confiscated assets, the U.S. government now controls around $37 billion in cryptocurrency, including a portion held in a special state vault. Interestingly, just a few days ago, one of the government wallets recorded a Bitcoin transfer worth $74 million, sparking a new wave of speculation about the future of the national crypto reserve strategy.
Current Status of the Investigation
According to the DOJ, Chen Zhi remains at large. If convicted, he faces up to 40 years in prison on charges of fraud, money laundering, violence, and human rights violations.
Crypto investigator ZachXBT noted on X (formerly Twitter) that the confiscated wallet addresses had already been flagged two years ago as compromised — suggesting that either intelligence agencies or hackers might have accessed them before handing over data to U.S. authorities.
⚖️ A Historic Operation and Its Consequences
Experts describe the operation against Prince Holding Group as historic. It not only exposed the scale of modern crypto fraud but also showed how deeply such schemes can infiltrate legitimate businesses — even using forced labor.
At stake is not just the fate of billionaire Chen Zhi but also the future of crypto regulation itself. The U.S. plans to tighten oversight of cross-border operations, crypto exchanges, and offshore structures that often shelter such schemes.
The DOJ operation has already gone down in history as the largest digital asset investigation ever — and the seizure of 127,271 bitcoins stands as one of the most dramatic intersections of finance and technology in recent years.
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