U.S. Executes Record Crypto Seizure Amid Cambodian Scam Crackdown

A landmark enforcement effort led by the U.S. Department of Justice and Treasury targeted Cambodia-based Prince Group and its affiliates, resulting in the confiscation of 127,271 BTC, valued at about $14.4 billion at prevailing rates. This marks the largest crypto seizure in U.S. history. The operation coincided with criminal charges filed against Prince Group’s founder and chair, Chen Zhi, who was indicted in New York for conspiring to launder funds and commit wire fraud connected to large-scale “pig butchering” romance scams.

The DOJ indictment alleges that the defendant orchestrated a global network of forced-labor scam operations in Cambodia, trafficking workers to produce illicit revenue from unsuspecting victims, primarily in the United States. Parallel sanctions were imposed by the Treasury Department, designating Prince Group as a transnational criminal organization and blocking its U.S. financial activities. On the same day, sanctions and regulatory actions severed the Cambodian conglomerate Huione Group from the U.S. financial system, reflecting a broad strategy to dismantle crypto-financed fraud networks.

Following the indictment, law enforcement executed legal processes to seize the Bitcoin holdings, transferring the digital assets into U.S. custody. According to public statements, the assets likely originated from alleged thefts at LuBian, a crypto mining operation tied to the same leadership. Elliptic analysts have begun tracing the provenance of these funds, although uncertainties remain regarding the initial transfer into U.S. control.

Officials emphasized that the operation served both justice and deterrence objectives. “Today’s action represents one of the most significant strikes ever against human trafficking and cyber-enabled financial fraud,” said the U.S. Attorney General. The Treasury Secretary hailed the sanctions as a potent financial tool to disrupt criminal enterprises worldwide. The coordinated effort underscores U.S. capacity to trace, freeze, and confiscate illicit crypto assets on an unprecedented scale, reinforcing global accountability for digital asset misuse.