Crypto Scam Kingpin Behind $15B Bitcoin Seizure Deported to China

Crypto Scam Kingpin Behind $15B Bitcoin Seizure Deported to China — What Comes Next?

Chinese authorities have detained Chen Zhi, a businessman implicated in one of the largest cryptocurrency scam and money laundering operations ever uncovered, as U.S. officials report the recovery of over $15 billion in Bitcoin. His return to China raises questions about how authorities will handle prosecution for complex transnational crimes.

Key Takeaways

Chen Zhi, the alleged leader of a $15 billion crypto scam, has been deported from Cambodia to China.
He was involved in a "pig butchering" scheme that built trust with victims before luring them into fraudulent crypto trading platforms.
Chinese laws allow for the prosecution of crimes committed abroad, which may lead to severe penalties for Chen.
The U.S. has already seized substantial amounts of Bitcoin linked to Chen's activities, which might be used for victim compensation.

Crypto Scam Kingpin Behind $15B Bitcoin Seizure Deported to China — What Comes Next?

Cambodia's Transfer of Chen Zhi: A Significant Step

Chen Zhi, alongside two associates, Xu Ji Liang and Shao Ji Hui, was taken into custody on January 6 after a thorough investigation by both Cambodian and Chinese authorities. This operation was part of a bilateral initiative to tackle transnational crime. Cambodia has officially revoked Chen Zhi's citizenship, facilitating his deportation to China, where authorities are eager to address these serious allegations.

At 38, Chen is the founder and chairman of Prince Group, which has been active in Cambodia since 2015, focusing on sectors like real estate and finance. Despite claiming to be a legitimate enterprise, U.S. and U.K. authorities allege that it served as a facade for illicit operations including online fraud, money laundering, and forced labor. Prince Group has strongly denied these accusations.

The U.S. efforts, which intensified in October 2023, aimed to seize over 127,000 Bitcoin linked to Chen's network. At that time, the value was estimated at around $15 billion, marking it as the largest cryptocurrency seizure connected to fraud to date. Both the U.S. Treasury and U.K. government designated Prince Group as a transnational criminal organization, leading to sanctions on multiple cryptocurrency wallets containing vast sums of Bitcoin.

What Lies Ahead for Chen Zhi and His Network

The operation known as "pig-butchering" employed manipulative tactics to gain victims' trust before redirecting them to bogus crypto trading platforms. Following the transfer of funds, these platforms would vanish. Investigators have traced the stolen money through over 100 shell companies and cryptocurrency operations, eventually consolidating it into private Bitcoin wallets.

Now that Chen is back in China, local laws allow authorities to prosecute citizens for serious crimes committed overseas, especially those related to fraud, money laundering, and human trafficking. Although specific charges have not yet been announced, Chinese courts have a history of imposing harsh penalties, including life sentences or even death penalties in extreme cases involving violence or forced labor.

Furthermore, Chinese authorities are likely to pursue asset forfeiture, potentially collaborating with the U.S. who has already confiscated billions in Bitcoin linked to this case. If courts consent, these assets could be utilized to compensate victims of the fraud.

This high-profile arrest is part of a wider initiative to curb crypto-related fraud networks operating across Southeast Asia. In the last year, regulators and law enforcement have partnered with major cryptocurrency exchanges to trace and recover illicit funds. Firms such as Tether, Binance, Coinbase, and blockchain analytics companies have played crucial roles in identifying and blocking assets tied to pig-butchering scams.

Recent U.S. statistics indicate that these schemes resulted in reported losses of $3.6 billion in 2024, highlighting their expanding prevalence and the urgent need for robust regulatory measures.