Chen Zhi, a Cambodian national and the founder and chairman of Prince Holding Group, was charged in October with wire fraud conspiracy and money laundering conspiracy for his role in the operation of scam compounds that stole billions from victims.
As part of the scheme, Zhi’s conglomerate held individuals against their will at compounds and forced them to run crypto fraud schemes, sometimes referred to as “pig butchering” scams, in which they built relationships with unsuspecting users before stealing their funds. These scams get their name from the process of fattening a pig before it is slaughtered.
Alongside the October indictment, the Department of Justice designated Prince Group as a transnational criminal organization and sanctioned Zhi and other associated individuals.
The indictment detailed that Zhi’s group trafficked hundreds of workers to multiple compounds in Cambodia to run its fraud network. He directly managed the compounds and kept detailed records on each while also guiding associates to use crypto to help obscure the group’s profits.
Some of the proceeds were ultimately used by Zhi and his associates for luxury travel and extravagant purchases, including a Pablo Picasso painting.
Illicit entities held nearly $15 billion in funds on their own last July—a more than 300% gain since 2020—the bulk of which come from stolen funds, according to the report.
