- The United States Department of Justice seized over 127,000 Bitcoin linked to a pig butchering crypto scam run by Prince Holding Group and its founder, Chen Zhi.
- During the course of the investigation, it was discovered that the operation made use of forced labor and human trafficking to operate.
The United States Department of Justice (DOJ) has announced the seizure of over 127,000 Bitcoin that was connected to a large-scale crypto scam case involving Prince Holding Group and its founder, Chen Zhi. According to the details that were shared by the DOJ, the money was realized following an investigation by the U.S. Attorney’s Office and the Department of Justice’s National Security Division.
Details on How the Crypto Scam Operated
On Wednesday, the DOJ shared on their official website that $15 billion worth of Bitcoin was seized from a pig butchering scam. For context, a pig butchering scam happens when hackers manage to gain the trust of their victims and leverage that trust to dupe them or lead them into fake investments.
So in this particular case, Chen Zhi and the systems he put in place deceived victims into investing in fake cryptocurrency platforms, which eventually led to them losing their funds. Reports also have it that he wasn’t just scamming his victims; he also subjected many he operated the scam with to work under harsh and inhumane conditions. Several victims of forced labor have now been rescued and placed under protection as part of the ongoing investigation.
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The culprit, on the other hand, has been regarded as a fugitive, as he is believed to be hiding in an undisclosed location. Aside from this exposed scam, he is also accused of creating and managing an international web of fraudulent businesses that targets individuals in the United States and other countries. So far he has managed to steal billions of dollars through his chain of pig butchering scams.
Following the seizure, the confiscated Bitcoin will become part of the U.S. government’s crypto reserve, which was formed in March by the current president, Donald Trump. The reserve serves as a secure crypto bank for all crypto assets legally seized in criminal cases. With this latest addition, the U.S. government’s crypto reserve now holds approximately 324,780 Bitcoin, valued at about $36 billion, based on data from Bitcoin Treasuries.
The DOJ Attorney General, Pam Bondi, described the operation as one of the most significant victories in the global fight against human trafficking and crypto scam crimes. She emphasized that the case highlights the growing link between crypto-related fraud and organized criminal organizations, where innocent individuals are often exploited for profit.
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