Chinese authorities seized over 127,000 Bitcoin — worth more than $15 billion — from the head of a massive crypto fraud network. That seizure, tied to Chen Zhi of Prince Group, was just the opening move. Now his right-hand man is in custody too.
Extradition From Phnom PenhXiong’s arrest follows Chen Zhi’s by about three months, suggesting Chinese law enforcement has been working through the syndicate’s leadership in stages.
The group processed over $89 billion in crypto assets, according to blockchain analytics firm Elliptic, making it one of the largest illicit financial operations ever documented.
A Network Built On Stolen CryptoIn October, the US Treasury Department’s Financial Crimes Enforcement Network cut Huione Group off from the American banking system entirely, ordering US financial institutions to close any accounts or payment channels linked to the group. That move effectively froze the network’s access to dollar-denominated finance.
Authorities Warn Remaining MembersChinese officials are not done. Ta Kung Wen Wei reported that several other members of the syndicate have already been brought to justice. Officials issued a public warning to anyone still at large, urging them to turn themselves in and cooperate in exchange for more lenient treatment.
“Public security authorities will continue to intensify efforts to capture fugitives,” the outlet quoted officials as saying.
The message was blunt: the window to surrender is open, but it will not stay open long. With two of the group’s top figures now in Chinese custody and its finances cut off from the US banking system, what remains of the Huione network appears to be running out of room.
Featured image from Getty Images, chart from TradingView
