The US government has seized over $14bn (£10.5bn) in bitcoin and charged the founder of a Cambodian business empire with allegedly masterminding a massive cryptocurrency scam.
UK and Cambodian national Chen Zhi was charged on Tuesday in New York for allegedly engaging in a wire-fraud conspiracy and running a money laundering scheme.
Mr Chen's businesses were sanctioned by the US and the UK as part of a joint operation. The UK government says it has frozen assets owned by his network, including 19 properties in London - one of which is worth nearly £100m ($133m).
US prosecutors state this is one of the biggest financial takedowns in history and the largest seizure of bitcoin ever, holding approximately 127,271 bitcoins. Chen, who remains at large, is accused of being the mastermind behind a 'sprawling cyber-fraud empire' operating under his multinational company, the Prince Group.
Victims were contacted online and duped into transferring cryptocurrency under false promises of profitable investments. Allegations also state that the company operated multiple scam compounds in Cambodia, with Chen managing the operations and tracking profits from the scams.
Chen's accomplices reportedly set up 'phone farms' to run call center scams, employing thousands of mobile numbers and social media accounts to target victims worldwide.
Assistant Attorney General John A Eisenberg described the Prince Group as a 'criminal enterprise built on human suffering,' with operations that included labor trafficking, confinement, and forced scams.
Luxury items, including watches and even a Picasso painting, were reportedly obtained through the proceeds of these illegal activities. If convicted, Chen faces a maximum penalty of 40 years in prison.
In Britain, his organization has been implicated in incorporating companies in the British Virgin Islands and investing heavily in UK properties. The UK Foreign Secretary has expressed the determination to combat this transnational threat that preys on the vulnerable.
