How the US became $15 billion richer in BTC in one day. All about crypto reserve

The US authorities have confiscated $15 billion worth of bitcoins, seized from an international fraud ring operating mainly in Asia. GetBlock AML Research explains how the US became $15 billion richer in just one day.

The United States and the United Kingdom have reported on the largest joint operation in history against a large-scale network of online fraud, human trafficking, and money laundering through cryptocurrency in Southeast Asia.

The operation was unprecedented in its scale and covered several areas simultaneously — including criminal charges, sanctions, and financial measures.

US prosecutors have charged prominent Cambodian businessman Chen Zhi, owner of the Prince Group holding company, with creating a global network of fraud and forced labor.

The US Department of Justice announced the largest seizure in history — 127 271 bitcoins worth approximately $15 billion. The US Department of the Treasury imposed sanctions on 146 individuals and companies associated with the Prince Group network.

In addition, a separate decision by the Financial Management Department recognized another Cambodian company, Huione Group, as an organization involved in large-scale money laundering.

Chen Zhi, owner of Prince Group

At the same time, the UK froze the assets of those involved and imposed a ban on entry into the country for a number of individuals. All of this became part of an overall strategy to destroy the international infrastructure of criminal schemes.

In recent years, scammers in Southeast Asia have created a huge industry of deception — from fake investments to “romantic” schemes, where victims are deceived through trusting relationships on the internet. It is estimated that tens of billions of dollars have passed through such schemes.

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How the Prince Group network operates

At the center of the investigation is Chen Zhi, a Cambodian citizen and the head of the Prince Group holding company. According to investigators, he and his partners ran a multi-billion dollar scheme in which thousands of people were held in special camps in Cambodia, Myanmar, and Laos.

Visualization: TRM Labs

Prince Group’s dirty cryptocurrency laundering scheme

Victims were forced to participate in fraudulent schemes, posing as investors or “partners” on the internet and luring other people into fake crypto investment projects.

Many of these centers were guarded by armed men. Workers were beaten, sold to other groups, or forced to work.

US sanctions

At the same time, the US Treasury Department imposed broad sanctions against 146 individuals and companies associated with the so-called “Prince Group transnational criminal organization.” Among those named are Chen Zhi himself, his top managers, and dozens of front companies registered in Cambodia, Hong Kong, Singapore, the British Virgin Islands, and the UAE.

Key companies in the holding group — Prince Bank Plc, Prince Real Estate Group, and their subsidiaries. The sanctions mean that all assets of these individuals and organizations in the United States are frozen, and American citizens and companies are prohibited from conducting any financial transactions with them.

In addition, four bitcoin wallets used to transfer and conceal funds obtained from fraudulent schemes were added to the sanctions list. These wallets are now blocked for all regulated exchanges and services worldwide.

Huione Group recognized as a money laundering hub

On the same day, US authorities took an additional step: Huione Group, also based in Cambodia, was officially recognized as a participant in international money laundering schemes.

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The investigation found that billions of dollars in suspicious transfers linked to internet fraud, human trafficking, and cybercrime passed through Huione’s structures. According to the authorities, some of Huione’s operations were used to conceal funds stolen by hackers linked to North Korea.

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Following this decision, US banks are prohibited from working with the Huione Group, effectively cutting the company off from the international financial system.

Charges and record confiscation

The US Department of Justice has brought criminal charges against Chen Zhi for fraud and money laundering. According to the prosecution, people were held against their will in camps under his control and forced to deceive investors from around the world, luring them into fake crypto investments. Chen Zhi himself is on the run.

At the same time, the US prosecutor’s office filed a civil suit to confiscate 127 271 bitcoins (approximately $15 billion) — funds obtained through fraud and money laundering.

These bitcoins were stored in 25 crypto wallets managed by the defendant himself. They are now under the control of the US government. This is the largest confiscation in the history of the US Department of Justice.