Cambodia Nabs Crypto Kingpin Chen Zhi in $12 Billion Scam, Extradites to China
A high-stakes international dragnet just closed on one of crypto's most-wanted.
The Cross-Border Takedown
Forget jurisdictional gray areas. Cambodian authorities, in a coordinated sting, arrested alleged fraud mastermind Chen Zhi. His destination? Not a tropical hideaway, but a direct flight to face Chinese justice. The charge? Orchestrating a digital asset scheme so vast it siphoned a staggering $12 billion from investors.
Following the Digital Trail
The operation underscores a global shift. Regulators are no longer playing whack-a-mole; they're tracing blockchain ledgers with the same rigor as bank statements. This extradition signals that offshore havens are becoming less hospitable for financial engineers peddling vaporware and unrealistic returns.
A Warning Shot Across the Bow
This isn't just about one arrest. It's a calculated message to the entire ecosystem. The 'move fast and break things' ethos hits a hard wall when the things being broken are international securities laws. While innovation charges ahead, the long arm of the law is now wired with its own sophisticated chain-analysis tools.
The real cynicism? Watching traditional finance institutions, who once scoffed at crypto, now quietly lobby to shape the very regulations that just bagged a $12 billion whale—proving that in finance, hypocrisy is just another arbitrage opportunity.
The crypto industry faces another significant fraud case
Several victims of the $12 billion crypto fraud claimed that they were under forced compliance at these scam sites. They further disclosed that Chen’s firm pressured them to engage in crypto-related fraud schemes, widely known as “pig butchering” scams.
Sources noted that crypto scammers in such incidents begin by establishing fake relationships with users who are unaware of any danger or threat before initiating their motive of stealing their funds.
Ideally, the expression “pig butchering” is derived from the concept of making a pig gain muscle and a healthy amount of weight efficiently before it is killed.
Meanwhile, reports confirmed that Chen’s team collected a total of 127,271 Bitcoin, worth approximately $11.6 billion, according to the current market price. After a lengthy investigation, the US government confiscated these assets, marking the biggest seizure in history.
To serve as a warning to individuals with similar intentions to Chen, the Department of Justice imposed sanctions on the founder and chairman of Prince Holding Group and others involved in this illegal activity.
Several individuals spark safety concerns in the ecosystem
Technology has played a significant role in facilitating criminal activities within the crypto industry. To support this claim, sources revealed that Chen’s team illegally transported hundreds of its staff members to various locations in Cambodia to run their fraud scheme. The Prince Group’s chairman utilized technology to gain direct control over these locations and managed to store detailed records of each one. At this time, his partners utilized cryptocurrencies to conceal the team’s earnings.
Chen and his colleagues used some of the collected funds to purchase luxurious items, such as a painting by Pablo Picasso, and catered to their trip to lavish places.
Following the seizure of $12 billion in Bitcoin as a result of the founder and chairman of Prince Holding Group’s unlawful act, reports from Chainalysis indicate that more than $75 billion has been collected from crypto-related criminal activities. This announcement sparked safety concerns among individuals.
To demonstrate the intense nature of the situation, sources pointed out that criminal groups gathered almost $15 billion in their own accounts as of July. This figure represents an over 300% surge since 2020, with most of this income resulting from funds stolen, according to a report from a reliable source.
Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
