The enclosed press release confirms that the U.S. Department of Justice has indicted Chen Zhi, chairman of Cambodia-based Prince Holding Group, for leading a massive cryptocurrency fraud and money laundering operation that targeted victims worldwide. The scheme was carried out through forced-labor compounds in Cambodia, where trafficked individuals were held in harsh conditions and forced to operate online scams. Among them were “pig butchering” schemes, in which fraudsters built fake romantic or business relationships with victims over time to convince them to invest in fraudulent cryptocurrency platforms. Over 250 victims in the U.S. were affected, including those in the New York area.

In connection with the case, the DOJ filed a $15 billion civil forfeiture action—the largest cryptocurrency seizure in its history—against 127,000 bitcoins held in wallets controlled by the defendant. U.S. authorities allege that stolen funds were laundered through a global network of shell companies, gambling operations, and crypto mining ventures, with proceeds ultimately funneled into luxury goods, real estate, and other high-value assets. The U.S. Treasury Department has designated Prince Group a transnational criminal organization and sanctioned 146 related individuals and entities. While the scheme operated overseas, the case carries important implications for U.S. financial institutions. While there is no private cause of cause allowed under KYC and/or AML laws, banks should remain alert to red flags tied to pig butchering scams, such as large or unusual wire activity, digital asset exposure, or customers transacting with high-risk foreign entities. Under anti-money laundering (AML) and sanctions compliance requirements, banks must monitor suspicious activity, update screening lists regularly, and assess risk exposure to named individuals or businesses. This case also underscores the growing intersection of online fraud, human trafficking, and financial systems—even those that may seem far removed from global crime networks.

No information in this communication is intended to constitute specific legal advice.  For specific legal advice, please contact an attorney, and if you have any such questions or would like more information about this issue, please contact William “Pat” Huttenbach at 713.752.8616, or email at phuttenbach@craincaton.com.

Thanks,

Pat

William “Pat” Huttenbach | Shareholder | Banking Litigation
Crain Caton & James | Attorneys & Counselors
Five Houston Center | 1401 McKinney St., Suite 1700
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Eastern District of New York

Chairman of Prince Group