$150M Asset Freeze and a $14.4B Bitcoin Web: The Unraveling of Chen Zhi’s Crypto Empire
An international financial scandal involving Chen Zhi, the Cambodian-based chairman of Prince Holding Group, has erupted with far-reaching implications for the global cryptocurrency landscape. Authorities across multiple countries, including Singapore, the United States, and the United Kingdom, have launched coordinated enforcement actions in response to what’s being described as one of the most extensive crypto fraud networks uncovered to date.
Global Crackdown on a Crypto Crime Syndicate
In late October, Singaporean authorities froze over $150 million in assets tied to Chen Zhi and his network. The seizure included luxury properties, multiple high-end vehicles, a yacht, cash, securities, and even premium liquor collections. This operation followed joint indictments from U.S. and U.K. prosecutors, who accused the Prince Holding Group of orchestrating large-scale cryptocurrency fraud schemes that spanned several continents.
According to the U.S. Department of Justice, the core of the group’s operations revolved around deceptive schemes known as “pig butchering.” These scams involved luring unsuspecting job seekers—mostly from neighboring countries—to Cambodia under the pretense of legitimate employment. Once there, they were allegedly coerced into running online crypto fraud operations, targeting victims globally.
How the Money Disappeared into the Blockchain
To mask the origins of their criminal proceeds, Chen’s network allegedly relied on an intricate web of over 100 front companies, offshore shell corporations, and crypto mining operations. These entities served as conduits through which illicit funds were funneled, converted into Bitcoin, and dispersed across the blockchain—making them harder to trace.
From May 2021 to August 2022, at least $18 million was funneled from over 250 U.S.-based victims through shell companies situated in Brooklyn and Queens, New York. However, authorities believe this is only a fraction of the total amount laundered through the operation. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) responded by sanctioning 146 individuals and entities associated with Prince Holding Group, reflecting the sheer scale and depth of the criminal enterprise.
Massive Bitcoin Movements Raise Red Flags
Blockchain analysts noticed suspicious activity shortly after the indictments were made public. A dormant Bitcoin wallet, previously linked to the Chinese mining pool LuBian—associated with Chen—suddenly moved nearly 12,000 BTC, valued at over $1.3 billion. This marked the first transaction from the wallet in three years. Within days, another 16,000 BTC were transferred across multiple addresses, sparking speculation that assets were being repositioned to evade seizure.
LuBian, once a prominent player in the crypto mining world, had suffered a catastrophic security breach in 2020 that drained more than 127,000 BTC, worth about $14.5 billion at current valuations. After disappearing in early 2021, the resurfacing of these funds in 2024 raised significant questions about their true ownership and use.
Mining Operations Used to Launder “Clean” Bitcoin
Prosecutors now believe that Chen used crypto mining ventures in Laos, such as LuBian and Warp Data, not just to generate new Bitcoin, but to obscure the origin of tainted funds. By mixing criminal proceeds with newly mined Bitcoin, the network gave the appearance of legitimacy to the assets, making it extremely difficult for investigators to track the money trail.
If the U.S. government succeeds in its ongoing asset forfeiture case, it could result in one of the largest confiscations of digital assets in American history. The seized Bitcoin would significantly increase federal crypto holdings, highlighting growing legal and financial stakes in digital asset enforcement.
Why Singapore Took Action Now
The timing of Singapore’s enforcement actions is closely tied to newly surfaced intelligence and international cooperation. It appears that data shared by U.S. and U.K. authorities, including blockchain analytics and testimony from rescued victims, prompted the city-state to act swiftly. Singapore’s financial system had been indirectly exposed to the money laundering activities, necessitating immediate response to protect its financial reputation and regulatory standing.
The Role of Cambodia’s Huione Group
In a related development, Cambodia’s Huione Group is also under scrutiny. According to the U.S. Financial Crimes Enforcement Network (FinCEN), Huione allegedly laundered over $4 billion through mechanisms similar to those used by Chen’s group. These findings point to a larger ecosystem of crypto-driven financial crime operating in the Southeast Asian region.
A Network of Shells and Shadows
The organizational complexity of Chen’s network has stunned investigators. With over 100 shell companies, each serving a different function—some acting as payment processors, others as crypto exchanges—the group maintained a high degree of operational security. This allowed them to bypass multiple national regulations and remain undetected for years.
What’s Next in the Investigation?
The case is far from over. International law enforcement agencies are continuing to trace transactions, identify additional perpetrators, and seek extradition of key figures. Meanwhile, the legal proceedings in the United States and Singapore are expected to extend well into the coming year, with potential ripple effects on crypto regulation worldwide.
Implications for the Crypto Industry
The Chen Zhi scandal underscores the darker side of decentralized finance and the challenges regulators face in policing a borderless digital economy. It also highlights the need for greater collaboration between governments, crypto exchanges, and blockchain analytics firms to detect and dismantle such networks early.
In response, several major exchanges have begun revisiting their KYC (Know Your Customer) procedures and AML (Anti-Money Laundering) policies. Financial watchdogs in Asia and the West are also pushing for tighter oversight of mining operations, especially those located in jurisdictions with weak regulatory frameworks.
Balancing Innovation and Security
As crypto adoption grows, so does the complexity of financial crime. The Chen Zhi case serves as a wake-up call: while blockchain technology offers transparency and decentralization, it also provides fertile ground for sophisticated fraud. Striking the right balance between innovation and security will be one of the defining challenges for the industry in the years ahead.
With billions in digital assets still at large and numerous suspects unaccounted for, the full extent of this crypto crime syndicate remains to be uncovered. But one thing is clear—global authorities are no longer willing to treat digital fraud as a niche issue. The crackdown on Chen Zhi may mark the beginning of a new era in crypto law enforcement.