- The U.S. imposed 146 sanctions on Cambodia’s Prince Group and requested the forfeiture of $15 billion in Bitcoin.
- The action targets a large-scale scam operation using forced labor and crypto fraud, according to U.S. authorities.
- The alleged leader, Chen Zhi, along with numerous shell companies and associates, faces penalties from the U.S. Treasury.
- The U.S. claims the criminal network laundered funds through bitcoin mining and shell companies, supported by bribery to avoid law enforcement.
- The Huione Group was also sanctioned for laundering $4 billion and facilitating scam operations between 2021 and 2024.
The U.S. government has issued 146 sanctions against the Cambodian conglomerate Prince Group, alleging its involvement in a widespread criminal network centered on crypto scams. The U.S. Treasury, working with the U.K., has requested court approval to seize approximately $15 billion in bitcoin (127,271 BTC) connected to these alleged illicit activities.
According to an official announcement, the U.S. Treasury’s Office of Foreign Asset Control enacted these sanctions to disrupt organizations accused of global cryptocurrency fraud. The sanctions include Chen Zhi, identified as the alleged leader, numerous shell companies, and a broad network of business partners.
The U.S. claims that the bitcoin in custody was acquired as part of proceeds laundered by Chen Zhi. The U.S. also stated it is seeking the court’s permission to take formal ownership of the digital assets. Crypto analyst ZachXBT has pointed out that some wallet addresses in the forfeiture process were previously flagged for having security weaknesses related to private key vulnerabilities in the so-called “Milk Sad” report. ZachXBT suggested on X that the government may have obtained access to these wallets through exploiting those vulnerabilities: “the US government, or someone on behalf of the US government, was able to hack the crypto wallets and take custody of the BTC.”
The Treasury further alleges that Prince Group operated at least 10 compounds in Cambodia, holding trafficked individuals and forcing them to conduct online scams targeting people worldwide. To sidestep law enforcement raids, members reportedly bribed officials with expensive gifts and received advance warning about operations. In one case, an official from the Chinese Ministry of Public Security allegedly offered to protect associates of the group.
These compounds have used tools such as Starlink satellite internet to maintain connectivity, even as authorities attempted to disrupt their operations. The profits generated from these schemes were allegedly laundered through shell companies, fake websites, and “laundering houses,” with some funds processed via major bitcoin mining operations like Warp Data and Lubian. At one point, Lubian ranked as the sixth-largest bitcoin mining facility globally.
As part of the U.S. measures, the Huione Group has also been cut off from the U.S. financial system, with officials claiming the firm laundered $4 billion in illicit funds between 2021 and 2024. U.S. authorities estimate that losses to victims from these scam operations total $16.6 billion over recent years.
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