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Cambodian authorities have arrested Chen Zhi, the alleged mastermind of one of the largest cryptocurrency fraud operations in history, and extradited him to China. Chen’s network is accused of orchestrating an estimated $12 billion‑plus crypto fraud, using so‑called “pig butchering” scams and forced‑labour cyber‑fraud compounds to defraud victims worldwide. Cambodia’s Interior Ministry confirmed that Chen — a Chinese‑born tycoon and former Cambodian citizen whose citizenship was revoked in December 2025 — was arrested along with two alleged co‑conspirators after a months‑long investigation and deported to the People’s Republic of China at Beijing’s request. Following his actions, Chen faced severe charges for conspiracy to commit wire fraud and money laundering in October. Notably, while imposing these charges, the court cited the founder and chairman of Prince Holding Group’s participation in operating scam sites that defrauded individuals from the US and globally. After these charges were filed, the US authorities alleged that Chen’s illegal actions transformed Prince Group into one of the most significant transnational criminal organizations in Asia. The crypto industry faces another significant fraud case  Several victims of the $12 billion crypto fraud claimed that they were under forced compliance at these scam sites. They further disclosed that Chen’s firm pressured them to engage in crypto-related fraud schemes, widely known as  “pig butchering” scams.  Sources noted that crypto scammers in such incidents begin by establishing fake relationships with users who are unaware of any danger or threat before initiating their motive of stealing their funds.  Ideally, the expression “pig butchering” is derived from the concept of making a pig gain muscle and a healthy amount of weight efficiently before it is killed. Meanwhile, reports confirmed that Chen’s team collected a total of 127,271 Bitcoin, worth approximately $11.6 billion, according to the current market price. After a lengthy investigation, the US government confiscated…

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Filed under: News - @ January 8, 2026 3:23 am