Crypto Kingpin Behind $15B Bitcoin Seizure Faces Chinese Justice — What’s Next for the Stash?
The handcuffs clicked shut halfway across the world, but the real drama is just beginning. A figure central to one of cryptocurrency's most staggering seizures—$15 billion in Bitcoin—has been shipped back to China. The move sends shockwaves through darknet markets and regulatory circles alike.
The Road to Repatriation
Extradition battles are messy, expensive, and full of diplomatic maneuvering. This one ended not with a whimper, but with a government-chartered flight. Authorities bypassed years of legal wrangling, cutting straight to a conclusion that satisfies Beijing's public anti-corruption drive. The logistics alone required coordinating multiple jurisdictions—a feat that makes your average cross-border stablecoin transfer look simple.
The $15 Billion Question
Fifteen billion. Let that number sink in. It's a figure larger than the GDP of some nations, all sitting in a digital wallet. Now, it's frozen, seized, and caught in limbo. What happens next to that mountain of Bitcoin? Does it get liquidated by the state, slowly dripped onto markets? Or does it vanish into a government vault, becoming a strategic reserve asset? The fate of those coins will ripple through liquidity pools and trading desks globally.
A New Playbook for Asset Recovery
This case isn't just about one kingpin. It writes a new chapter in global asset recovery. Law enforcement agencies watched, learned, and took notes. The playbook for tracking and seizing illicit crypto just got a major update. Future fraudsters will face a world where borders matter less, and blockchain footprints are Exhibit A.
The Unspoken Calculus
Behind the scenes, there's a cynical finance game playing out. Governments now hold massive, volatile crypto reserves from seizures. They've become unintentional—and arguably terrible—hedge fund managers. Will they HODL through dips, or panic sell at the first sign of a bear market? Their moves could accidentally swing markets, proving once again that when bureaucrats try their hand at portfolio management, everyone holds their breath.
The kingpin's story may be heading toward a conclusion, but the saga of the $15 billion is just entering its second act. Watch the blockchain.
Cambodia Hands Over Chen Zhi After Revoking Citizenship
Cambodia China Times and statements from Cambodia’s Ministry of Interior stated that Chen Zhi, along with two associates, Xu Ji Liang and Shao Ji Hui, was arrested on January 6 following months of joint investigations by Cambodian and Chinese authorities.
Beijing had desired the three to be deported to China. According to Cambodian authorities, the operation was conducted as a bilateral cooperation agreement that involved transnational crime.
In December 2025, Chen had already been removed as the royal decree had revoked his Cambodian citizenship, paving the way.
Chen, 38, has been the chairman and founder of Prince Group, a conglomerate that started its operations in Cambodia in the year 2015 and has interests in real estate, finance, and hospitality.
Although the company was publicly a legitimate regional company, U.S. and U.K. authorities have alleged that it was a cover to facilitate a massive criminal network, which they claim was developed through online frauds, money laundering, and forced labor.
Prince Group has refuted all the allegations.
The deportation is possible after the enforcement efforts by the United States in October, when the federal prosecutors sought to seize over 127,000 Bitcoin they claimed was tied to wallets operated by Chen and his network.
@USTreasury has moved to make its largest-ever cryptocurrency seizure, targeting $12B in #Bitcoin from a global "pig butchering" scam. #US #PigButcheringhttps://t.co/6JpciJNrod
By that point, the bitcoin was worth approximately 15 billion dollars, which is the biggest cryptocurrency seizure to date associated with the use of online fraud.
The U.S. Treasury and the U.K. government had jointly described Prince Group as a transnational criminal group, and U.S. sanctions had been extended to dozens of crypto wallets containing hundreds of millions of dollars in Bitcoin.
After Deportation, Chinese Courts Set to Handle Global Crypto Fraud Case
The schemes, commonly known as pig-butchering scams, involved building trust with victims before directing them to fake crypto trading platforms.
Once funds were deposited, the platforms disappeared. Investigators say the proceeds were funneled through more than 100 shell companies, crypto exchanges, and mining operations before being consolidated into private Bitcoin wallets.
The case now takes a new turn with Chen being back in China. The Chinese law enables the authorities to prosecute the citizens in case a serious crime was committed abroad, especially when it dealt with a massive fraud, money laundering, and human trafficking.
Even though the official charges are not yet declared, Chinese courts in the past have sentenced very harshly in similar cases, such as life imprisonment, and in extreme cases involving violence or forced labor, the death penalty.
Asset forfeiture is also anticipated by the Chinese authorities. Coordination with foreign governments is likely, given that U.S. officials have already seized billions of dollars in Bitcoin connected to the case.
Those assets could ultimately be used for victim compensation if courts approve such measures.
The arrest comes amid a broader global crackdown on crypto-enabled fraud networks operating across Southeast Asia.
Over the past year, regulators and law enforcement agencies have worked with major crypto firms to freeze and recover illicit funds.
@Tether_to, @chainalysis, @binance, and @OKX have worked with APAC law enforcement to freeze $49.6M in USDT traced to a global “pig butchering” scam ring. #Tether #pigbutcheringhttps://t.co/30UEbMdTja
Tether, Binance, Coinbase, and blockchain analytics firms have all assisted in tracing and blocking assets tied to pig-butchering scams.
U.S. data shows reported losses from these schemes reached $3.6 billion in 2024, showing their growing scale.
