The U.S. government is moving to seize 127,271 BTC, valued at roughly $14 billion, tied to a sprawling online investment scam run by Chinese émigré Chen Zhi, 38, and his Cambodia-based Prince Group Transnational Criminal Organization.
It is a very powerful tool. announced The U.S. Treasury Department’s Office of Foreign Assets Control and Financial Crimes Enforcement Network announced Monday that they are launching a massive crackdown against transnational cybercriminal groups and scams targeting U.S. citizens and allies.
Chen Zhi also known as “Vincent Chen,” The scammers, who use online fraud to lure their victims into fraudulent investments schemes called “pig butchering” scams.
The victims are gradually cultivated and convinced to invest money in fake platforms.
Pig-butchering scam details
As per the indictmentChen, along with his co-conspirators, used social media apps and messaging applications to gain trust from victims before they stole their money.
According to reports, the network operated from a heavily-guarded facility “scam compounds” In Cambodia, workers are forced into the running of schemes.
The prosecution claims that the laundering operation was responsible for the illegal proceeds of billions through the use of shell companies, property, gambling, sextortion and massive Bitcoin mining operations in Asia and America.
According to the U.S. Government, Chen’s digital network conceals and moves at least 127,000 Bitcoins worth billions in value across multiple digital wallets.
Many speculate that the 127.271 BTC are a result of a hack. reportedly Stolen in 2020, and linked to LuBian’s mining operation. BTCs have been idle since then. The U.S. is seeking forfeiture.
What about the U.S. Justice Department? confirmed According to reports, the money is in U.S. hands. However, it was not explained how or where they had been recovered. This would mean that the US Government now has 325 283 BTC which is worth $37 billion.
Trump will be inaugurating his presidency in March. signed A Presidential Order to create a Strategic Bitcoin Reserve as well as a U.S. Digital Asset Stockpile would centralize the government’s crypto. The Reserve would hold the $14 billion worth of bitcoin seized at that time as a form of store value, and not be sold.
Theoretically speaking, the Reserve would not be able to sell the 127.271 Bitcoins generated by this fraud.
Abuse and corruption on a grand scale
Indictment describes also a network of corruption and violent underpinnings, such as bribes paid to foreign officials and threats and abuses against workers to protect and control the company.
Chen faces two charges: conspiracy to wire fraud and conspiracy money laundering, which could both result in sentences of up to ten years.
Prosecutors seek forfeiture for bitcoin, cryptocurrency and assets related to the alleged crime.
Foreign, Commonwealth, and Development Office, United Kingdom coordinated Parallel sanctions against Chen Zhi and Prince Holding Group as well as key associates.
More information on laundering and sanctions
According to a press release from U.S. Treasury, in addition to seizing Bitcoin, Treasury also finalized a ruling that separated Huione Group (a Cambodian financial services conglomerate) from the U.S. Banking System.
According to reports, the company laundered millions of dollars in digital currency that were stolen by DPRK hackers and Southeast Asia scam networks. This included at least $300,000,000 in cybercrime proceeds.
OFAC has sanctioned 146 entities or individuals linked to Prince Group TCO. This includes shell companies and real estate firms as well as banks and operators of resorts and luxury hotels in Cambodia, Palau, and other countries.
Sanctions also apply to intermediaries like Rose Wang from Palau, who assisted Chen in establishing commercial operations overseas, which included a 99 year lease on a Ngerbelas Island luxury resort.
Monday’s coordinated U.S.–U.K. The coordinated U.S.-U.K. action on Monday follows previous Treasury and FinCEN initiatives targeting cybercriminals throughout Southeast Asia. These included sanctions against Burmese, Cambodian and DPRK linked money laundering networks.
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Source: bitcoinmagazine.com
