Feds Uncover Brutal Underworld: Seize Record $15 Billion in Crypto from ‘Pig Butchering’ Ring

A Record-Shattering Seizure Exposes a Dark Alliance of Crypto Scams and Human Trafficking

In a landmark operation that sent shockwaves through the digital asset world, U.S. federal prosecutors have seized an astonishing $15 billion in cryptocurrency. This historic forfeiture, the largest in the Justice Department’s history, is tied to a sophisticated and brutal investment scam known as “pig butchering,” orchestrated from forced labor camps in Cambodia.

The investigation has pulled back the curtain on a vast criminal enterprise, revealing a disturbing link between high-tech financial fraud and modern-day slavery. At the center of the storm is Chen Zhi, a Chinese émigré and founder of the Prince Group, one of Cambodia’s largest conglomerates, who now faces charges of money laundering and wire fraud conspiracy. While Chen remains at large, the staggering seizure of 127,271 Bitcoin marks a pivotal victory for law enforcement in the fight against global cybercrime.

What Exactly is a ‘Pig Butchering’ Scam?

The term “pig butchering” (Sha Zhu Pan in Chinese) is a grimly accurate metaphor for this type of long-con investment fraud. Scammers “fatten up” their victims (the “pigs”) by building trust and rapport over an extended period before “butchering” them by stealing their life savings.

The process is methodical and psychologically manipulative:

• The Initial Contact: It often begins with an unsolicited message on a social media or messaging app, frequently disguised as a “wrong number” text.
• Building Trust: The scammer, often using a fake profile with a carefully selected photo, spends weeks or even months cultivating a relationship. This can be a friendship or a romantic connection. They share personal stories, offer a listening ear, and become a trusted confidant.
• The Investment Pitch: Once trust is established, the scammer casually introduces a “foolproof” or “exclusive” cryptocurrency investment opportunity that has brought them immense wealth. They promise guaranteed, high returns with little to no risk.
• The Bait and Hook: The victim is persuaded to make a small initial investment on a fraudulent, but professional-looking, trading platform or app. This platform shows fake profits, encouraging the victim to invest more significant sums.
• The Slaughter: After the victim has invested a substantial amount of money—often their entire life savings or funds from loans—the scammer vanishes. The fake investment platform is shut down, and all contact is severed, leaving the victim financially and emotionally devastated.

Inside the Prince Group’s Criminal Empire

Prosecutors allege that Chen Zhi transformed the Prince Group into one of Asia’s most formidable transnational criminal organizations. The indictment paints a horrifying picture of at least 10 forced labor camps across Cambodia, surrounded by high walls and barbed wire, where thousands of individuals were held captive.

These camps were converted into sophisticated “phone farms” and automated call centers dedicated to executing pig butchering and other fraudulent schemes on a massive scale. According to the indictment, just two of these facilities were equipped with 1,250 mobile phones that controlled over 76,000 fraudulent social media accounts. Workers were given detailed scripts on how to manipulate victims, including instructions to use profile photos of women who were “not ‘too beautiful’” to appear more genuine.

The operation was incredibly lucrative. One of Chen’s co-conspirators reportedly boasted in 2018 that the schemes were raking in over $30 million per day. The illicit profits were allegedly laundered to purchase luxury assets, including private jets, yachts, and even a Picasso painting. To protect their operation, Chen and his associates allegedly bribed public officials to evade investigations and raids, with one ledger showing a $3 million yacht purchased for a senior foreign government official.

How to Protect Yourself from Investment Scams

The rise of these sophisticated scams is a stark reminder to remain vigilant. The FBI emphasizes that anyone can become a victim. Here are key steps to protect yourself:

• Be Skeptical of Strangers: Treat any unsolicited message from an unknown person with extreme caution, especially if it quickly turns to topics of personal finance or crypto investing.
• Guard Your Finances: Never send money, cryptocurrency, or gift cards to someone you have only met online. Do not give them access to your financial accounts.
• Question “Guaranteed” Returns: Legitimate investments always carry risk. Be highly suspicious of anyone promising guaranteed, high-yield, or risk-free returns. If it sounds too good to be true, it is.
• Verify Everything: Scammers create convincing fake websites and mobile apps. Independently verify any investment platform before using it. Do not rely on links provided by your online contact.
• Talk to Someone You Trust: Before making any significant financial decisions, discuss the opportunity with a trusted friend, family member, or financial advisor. A third-party perspective can often spot red flags you might miss.

A Warning for the Crypto Community

The DOJ’s record-breaking seizure in the case of the Feds seize <$15 billion in crypto> from ‘pig butchering’ scheme involving forced labor camps is a monumental step in combating large-scale crypto crime. However, it also serves as a chilling warning. The anonymity and cross-border nature of cryptocurrency make it an attractive tool for sophisticated criminals who are willing to exploit the vulnerable through both digital deception and physical violence.

As the FBI’s Christopher Raia noted, authorities cannot simply arrest their way out of this problem. The best defense is a proactive and educated public. By understanding the tactics of these scammers and exercising extreme caution, we can collectively work to protect ourselves and our assets from these predatory schemes.