• Cambodia arrested and extradited Prince Group founder Chen Zhi to China following a joint investigation right into a multibillion-dollar “pig-butchering” crypto rip-off community.
  • The US Division of Justice lately launched its largest-ever forfeiture motion to grab $15 billion in Bitcoin linked to the group’s alleged forced-labor compounds.
  • Chen’s switch to Beijing follows the revocation of his Cambodian citizenship and bypasses US custody.

Cambodia has arrested Prince Group founder Chen Zhi and transferred him to China at Beijing’s request, its info ministry mentioned on Wednesday, after a joint Cambodia–China investigation. 

Authorities didn’t say whether or not Chen will likely be charged in China, and the Cambodia China Occasions reported he was detained earlier this week earlier than being deported. The elimination comes months after US prosecutors accused Chen of operating a significant crypto-fraud community working out of rip-off compounds in Cambodia. 

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Roughly US$15 billion in Bitcoin Seized

According to The New York Occasions, US authorities allege the websites relied on pressured labour and carried out “pig-butchering” schemes, through which victims are drawn into pretend funding or romance pitches earlier than being pressured into sending cryptocurrency.

Notably, in October, the US Division of Justice (DOJ) filed what it described as its largest forfeiture motion, searching for to grab roughly US$15 billion (AU$22.9 billion) in Bitcoin (BTC) allegedly linked to the operation, together with tons of of tens of millions of {dollars} in property and different property. 

US authorities say the BTC focused within the case represents proceeds of fraud and cash laundering tied to Chen and entities linked to Prince Group.

Cambodian officers additionally mentioned Chen’s citizenship was revoked late final 12 months. Cambodia has no extradition treaty with america, which suggests his switch to China bypassed any direct handover to U.S. custody.

The case has additionally fed into broader disputes over seized Bitcoin. In November, China’s Nationwide Laptop Virus Emergency Response Heart accused the US authorities of orchestrating a separate 2020 theft of greater than 120,000 bitcoin, valued at about US$11 billion (AU$16.8 billion), from a Chinese language mining pool, in keeping with a Bloomberg report.

Prince Group has beforehand denied involvement in scams and described allegations in opposition to it as false.

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