U.S. Charges Cambodia’s Prince Group for Massive Crypto Scam
U.S. prosecutors have charged Cambodia’s Prince group and its chairman, Chen Zhi, with wire fraud and money laundering.The group,led by Chen,was behind a large crypto scam empire that exploited thousands of victims.
Prince Group, a conglomerate spanning property, finance, and consumer services, was a front for an extensive criminal network. the U.S. Department of Justice (DOJ) indicted Chen, a dual citizen of Cambodia and the UK, for orchestrating a transnational scam network.This network defrauded investors and laundered illicit funds through shell companies and scam operations in Southeast Asia.
Chen controlled at least ten scam compounds in Cambodia, where trafficked workers were forced to run online scams. These “phone farms” used thousands of mobile phones and social media accounts to target victims globally.
Chen and his accomplices used elegant crypto laundering techniques like “spraying” and “funneling” to conceal the origins of their wealth. Authorities seized over 127,000 Bitcoin from the group, valued at more than $14 billion. If convicted, Chen faces up to 40 years in prison.
prince Group has been labeled a transnational criminal association, and those associated with it have been sanctioned in the U.S. The DOJ continues to investigate and pursue international efforts to locate Chen, who remains at large.
This case highlights the growing problem of crypto scams and human trafficking in Southeast Asia. Countries like Myanmar, Laos, the Philippines, Malaysia, and Vietnam have also seen a surge in similar networks. The U.S. has sanctioned other Cambodian businesses for similar operations, emphasizing the need for global cooperation to combat these crimes.
