Authorities in Cambodia have arrested Chen Zhi, a businessman accused of running a global cryptocurrency scam.
He was detained on January 6 and later sent to China, according to a Wall Street Journal report.
Investigators said he led a large fraud operation that took billions of dollars from victims in the United States and other countries.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Polkadot in Crypto? (DOT Animated Explainer)
Chen, a Cambodian national, is known as the founder and chairman of Prince Holding Group. US officials charged him in October with conspiracy to commit wire fraud and money laundering. The charges link him to several sites in Cambodia where people were allegedly forced to take part in online scams involving digital currencies.
Prosecutors describe these operations as “pig butchering” schemes, a form of online fraud where scammers build trust with targets over time and then take their money.
Officials said workers were brought to compounds under false promises of jobs, then confined and made to carry out these scams.
The US Department of Justice labeled Prince Group a transnational criminal organization. Sanctions were also placed on Chen and several people connected to him.
Investigators claim Chen kept detailed oversight of the sites, including records of operations and staff. He also directed his team to use cryptocurrency transactions to hide the source of the money.
Federal authorities in Michigan, working with international law enforcement, recently took down a cryptocurrency exchange called E-Note. How did the case unfold? Read the full story.
