https://ktvo.com/news/nation-world/doj-sues-for-15-billion-in-bitcoin-largest-forfeiture-action-in-its-history

HUNT VALLEY, Md. (TNND) — The Department of Justice (DOJ) sued Tuesday to confiscate about $15 billion worth of bitcoin, the largest forfeiture action in the DOJ’s history.

New York federal prosecutors and the DOJ’s National Security Division filed a civil forfeiture complaint against the funds, which are the alleged proceeds and instruments of fraud and money laundering schemes directed by a Cambodian businessman.

The bitcoin, which total over 127,000, are now in the federal government’s custody, the DOJ said.

They were allegedly accessed through private crypto “wallets” with keys in the possession of the businessman, Chen Zhi. He is a Cambodian conglomerate chairman whom U.S. prosecutors accuse of laundering crypto to hide its source. Chen directed associates of the conglomerate, Prince Holding Group, to conceal the sources of its profits, which the DOJ claims are victims in New York City and other places across the world, according to prosecutors.

“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York said in a statement.

“Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will.”

Chen allegedly orchestrated Prince Holding Group’s profits through Cambodian compounds that carried out crypto investment schemes. The DOJ said that hundreds of workers, who were trafficked into the facilities against their will, executed the scams by convincing victims to transfer crypto to accounts controlled by the conglomerate. The workers promised the victims their funds would be invested and would generate profits, but the crypto was actually stolen and laundered, prosecutors claimed.

“This is an individual who allegedly operated a vast criminal network across multiple continents involving forced labor, money laundering, investment schemes, and stolen assets – targeting millions of innocent victims in the process,” FBI Director Kash Patel said, referring to Chen. “Justice will be done and I’m proud of the men and women of the FBI who executed this mission faithfully.”

The alleged scam workers in the compounds often developed relationships with victims through messaging or social media apps.

The DOJ claimed they operated under violent threats while in the facilities, which were surrounded by high walls and barbed wire. Some of the scammers were subjected to torture and were beat, which Chen knew of, according to prosecutors. He allegedly kept records of each compound, including photos of violence committed against the workers.

“Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” U.S. Attorney General Pam Bondi and Deputy Attorney General Todd Blanche said in a joint statement.

"By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit.”

The DOJ noted that Chen and other Prince Holding Group executives used their political influence in multiple foreign countries to protect their scheme, bribing public officials to avoid law enforcement.

Chen also used some profits for luxury travel and entertainment and to buy private jets, yachts, vacation homes, watches, collectables and a Pablo Picasso painting. The chairman, who is facing conspiracy charges for wire fraud and money laundering, would face at most 40 years in prison if he is convicted. He was at large as of Tuesday.

The Department of the Treasury has also sanctioned Chen and designated Prince Holding Group as a transnational criminal organization.