Bitcoin billionaire Chen Zhi has been taken into custody in Asia, marking a major step in one of the largest cryptocurrency fraud cases ever uncovered.
Authorities say Chen, the chairman of Cambodia-based Prince Group, is accused of running a massive global scam that stole billions of dollars from victims, including many in the United States.
Cambodian officials confirmed that Chen was arrested this week at China‘s request as part of cooperation to fight cross-border crime.
He was later extradited to China. It remains unclear whether Chinese prosecutors will formally indict him or if he could ever be sent to the United States, which does not have a standing extradition treaty with China.
According to the NY Post, US prosecutors allege Chen was the mastermind behind a huge “pig butchering” scam, a type of fraud where victims are slowly groomed online, often through fake friendships or romances, before being pushed into fake cryptocurrency investments.
Once victims try to withdraw their money, the funds are gone. Authorities say these schemes drained life savings from people across the US, the UK, and many other countries.
In October, the US Department of Justice announced it was seeking Chen’s arrest and moved to seize more than 127,000 bitcoin tied to the alleged operation. At the time, the cryptocurrency was valued at about $15 billion.
Former Attorney General Pam Bondi said the case showed the government’s commitment to protecting victims and recovering stolen assets.
Chen Zhi Allegedly Used Stolen Crypto for Luxury Lifestyle
Prosecutors say the stolen money paid for an extravagant lifestyle, including luxury watches, yachts, private jets, and high-end real estate.
Investigators froze major assets, such as a $16 million mansion in London, a $126 million office building, and a Picasso painting bought in New York, CentralCoin reported.
Court filings also describe disturbing conditions inside alleged scam compounds linked to Prince Group.
US authorities claim Chen’s network operated at least 10 sites in Cambodia where thousands of workers were trafficked, held against their will, and forced to run online scams.
Many workers reportedly had their passports taken and were threatened or beaten if they failed to meet fraud targets.
Chen and Prince Group have denied all accusations. The company says it operates legitimate businesses in property development, finance, and consumer services.
The case has drawn global attention because of its size and impact. US officials have called it one of the biggest crypto fraud investigations in history.
Originally published on vcpost.com