Following a sweeping crackdown, U.S. federal prosecutors have seized, and investors may recover, approximately $15 billion in bitcoin from what authorities describe as one of the largest cryptocurrency investment frauds ever uncovered — a sprawling “pig butchering” operation built on forced labor and human trafficking.
The cryptocurrency is already in U.S. government custody, and recovery mechanisms are moving forward. Given the amounts at stake and the nature of the offense, the court has been allowing claims to be filed even though the initial December 15, 2025 deadline has passed.
The case centers on Chen Zhi, founder and chairman of the Prince Group, a Cambodia-based conglomerate that U.S. prosecutors allege functioned as a front for a vast transnational criminal enterprise.
The alleged operation’s scale is staggering. Prosecutors say Chen and his co-conspirators operated at least ten fortified scam compounds across Cambodia, surrounded by barbed wire and high walls, where trafficked workers were held under threat of violence. Inside, thousands of mobile phones controlled tens of thousands of fake social media accounts that were used to approach victims through unsolicited messages, dating apps and online investment forums.
Workers were allegedly instructed to cultivate emotional trust, often using profile photos of women considered not “too beautiful” to appear “genuine,” before steering victims into fraudulent cryptocurrency investments. Once funds were transferred, victims were shown fabricated profits to encourage additional deposits, only to be abruptly ghosted and their assets stolen.
The FBI traced substantial laundering activity back to accounts and shell entities connected to Brooklyn, underscoring the operation’s reach into the United States. It is estimated that there are over 250 victims in New York and across the country.
Following a criminal indictment last October, charging Chen with wire fraud conspiracy and money laundering conspiracy, the Department of Justice filed the largest civil forfeiture action in its history related to more than 127,000 Bitcoin traced to the scheme.
Chen, who had been at large, was recently arrested and extradited to China. However, Chen remains under U.S. indictment, and the forfeiture case tied to the seized bitcoin continues to proceed in federal court in Brooklyn. Parallel investigations and sanction actions by the U.S., U.K., and other jurisdictions remain ongoing against more than 100 affiliates of the Prince Group worldwide.
Chen’s extradition does not halt the U.S. forfeiture proceeding. The cryptocurrency is already in U.S. government custody, and recovery mechanisms are moving forward independently of where Chen is prosecuted.
Civil forfeiture cases are in rem legal proceedings, meaning the action is brought against the property itself rather than against an individual accused of a crime. The property at issue is alleged to have been derived from, or used in, criminal activity. Civil forfeiture also permits the government to seek assets that would be outside the reach of criminal forfeiture, including property belonging to fugitives or individuals located outside of the United States.
Unlike criminal forfeiture, civil forfeiture does not require a criminal conviction. Instead, the government must demonstrate by a preponderance of the evidence that the property is connected to criminal conduct. This type of proceeding allows the court to consolidate all parties with a legal interest in the property into a single case, enabling the resolution of all competing claims at once.
Chen Zhi’s extradition to China does not diminish the claimant’s rights, and the forfeiture action remains active in the Eastern District of New York. The seized assets are already under U.S. control. However, it is up to investors who were swindled to make a claim. As any new claims would be late given the court-ordered deadline, time is of the essence for any investor to come forward and make a legal argument for inclusion in the process.