A major U.S. criminal and sanctions push has exposed what investigators call one of the largest transnational crypto fraud and forced-labour schemes in recent memory. At the centre: Chen Zhi (also known as Vincent) and the Prince Group, a Cambodia-based conglomerate accused of running “scam compounds” that forced victims to operate investment frauds that siphoned off billions worldwide. This piece unpacks the allegations, the evidence that has emerged publicly, how the scams worked, and what the case reveals about the intersection of crypto, human trafficking, and international law.
Table of Contents
1) What investigators allege
U.S. authorities and human-rights groups say Chen Zhi, chairman of Prince Group, presided over a sprawling operation that imprisoned and coerced people inside fortified compounds in Cambodia and elsewhere, forcing them to run fraudulent crypto-investment schemes that targeted victims around the globe. The U.S. indictment and sanctions claim the operation generated roughly $14 billion in illicit gains and used complex corporate structures and cryptocurrency channels to launder proceeds.
2) How the scams worked: “pig-butchering” and forced labour explained
“Pig-butchering” is a social-engineering scam: attackers groom a target — often via dating apps or social platforms — gain trust over weeks, then persuade the victim to invest in fake cryptocurrency or trading platforms. Over time the “investor” is coaxed into increasing stakes until their funds are drained. In the Prince Group allegations, these scams were industrialised: people were trafficked or coerced into compounds and forced to contact thousands of victims daily, run fake trading dashboards, falsify transaction records, and clean the stolen funds. Victims reported high-pressure tactics, violence, confiscated passports, and prison-like security.
Why did this scale? Several factors compounded:
Centralised operations: compounds acted as call centres with thousands of operators.
Opacity of crypto rails: criminals converted fiat to crypto and mixed funds through many wallets and exchanges.
Layered corporate fronts: hotel, casino, telecom and “mining” companies served as money-laundering fronts.
Weak cross-border enforcement until recently.
3) Money flows: from stolen accounts to real-world riches
According to public filings and government statements, proceeds travelled from victims’ accounts into crypto wallets, through a chain of exchanges and service providers, and then into businesses linked to Prince Group — including real estate and allegedly legitimate firms that helped integrate dirty crypto into the formal economy. Seizures of cryptocurrency wallets and sanctions against associated entities have become a core enforcement tool, but tracing funds across jurisdictions remains painstaking and often slow.
Practical note for investigators: blockchain analytics teams can map transaction clusters linked to known wallets and clusters; the choke points are often at the on-/off ramps — exchanges, OTC desks, and local cash-out points.
4) The Prince Group corporate web and its reach
Public records show a network of companies under the Prince Group banner spanning hospitality, real estate, crypto mining, and other service sectors. Observers say these firms functioned both as legitimate commercial arms and as laundering nodes — buying property, moving funds through banking corridors, and offering cover for transfers. Sanctions recently targeted dozens of entities and individuals connected to the group, an unusually broad action that reflects the magnitude of alleged harms.
5) International enforcement: indictments, sanctions, and seized assets
Governments have started to respond. U.S. federal indictments, combined with financial sanctions and asset seizures, aim to disrupt the criminal network and recover funds for victims. But prosecution faces hurdles: the alleged mastermind is reportedly at large; evidence collection across multiple countries is complex; and mutual legal assistance treaties (MLATs) require time. The global nature of crypto means coordination across law-enforcement, financial authorities, and civil-society organisations is essential.
6) Victims and the human cost (human-first section)
Beyond the dollars is the human tragedy. Survivors describe abduction, debt bondage, long hours of coerced calling and manipulating victims, physical abuse, and isolation. For many, the damage is both psychological and financial — families ruined, livelihoods destroyed. Human-rights groups emphasize that prosecuting the financial architecture alone is insufficient: rescuing, rehabilitating, and supporting survivors must be a central priority.
“These are not faceless losses — each transfer has a human story behind it.” — human-rights investigator (paraphrased from public reporting)
7) Why crypto enabled this — and what the industry must do
Cryptocurrency creates convenience and programmable finance but also anonymity, speed, and cross-border liquidity that criminals exploit. Steps the industry could and should take:
Strict know-your-customer (KYC) at all on/off ramps.
Robust transaction monitoring and rapid freeze protocols when criminal patterns appear.
Mandatory suspicious-activity reporting and improved co-operation with law enforcement.
Stronger controls on mixing services and OTC desks.
Platforms that prioritize fast growth over compliance lent openings for criminal exploitation — a lesson for investors, regulators and users. Enforcement alone won’t solve this: governance and product design must build anti-abuse features from day one.
8) What authorities and platforms must do next
Short term:
Freeze and seize known wallets and exchange accounts.
Coordinate victim identification and repatriation of funds where possible.
Expand sanctions to encompass facilitators and intermediaries.
Medium term:
Strengthen international MLAT processes for crypto evidence sharing.
Build public-private task forces combining exchanges, analytics firms and law enforcement.
Support survivor services and cross-border rescue operations.
Long term:
Redesign certain DeFi flows with mandatory compliance layers.
Push for minimum global standards for crypto custodians and fiat bridges.
Alleged operation: compounds in Cambodia (and other regions) where trafficked people were forced to run scams.
Estimated proceeds: government claims and investigative reports suggest multi-billion dollar scale (commonly reported as ~$14B in public articles)
Current status (publicly reported): sanctions against Prince Group entities; indictments filed in U.S. courts; investigations ongoing in multiple jurisdictions.
Further Reading : How crypro enabled
Practical takeaways for readers
If you’ve been contacted with investment opportunities on social apps: verify with regulated exchanges, never move funds to unknown wallets, and be suspicious of fast-growing returns.
Policy makers: prioritize cross-border crypto traceability and survivor protection.
Crypto platforms: accelerate compliance and transaction-monitoring investments.
Researchers & journalists: this case is a reminder — financial innovation without safety nets becomes a tool for exploitation.