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Combating the “Pig Butchering” Scam Industry: A Major Law Enforcement Operation
Over the past five years, criminals orchestrating widespread romance and investment scams, colloquially known as “pig butchering,” have illicitly siphoned tens of billions of dollars from individuals globally. Law enforcement has now launched one of its most substantial operations against this expansive scam industry, specifically targeting the operators of several modern – slavery scam compounds in Southeast Asia. Region – wide, hundreds of thousands of human trafficking victims have been coerced into running these fraud operations on behalf of criminal gangs.
Coordinated Action by the US and UK
On Tuesday, authorities in the United States and the United Kingdom took synchronized action against a large Cambodian organization and its leader, who is alleged to have operated a series of infamous scam centers in the country. The US Treasury Department’s Office of Foreign Assets Control (OFAC) declared that it has imposed financial sanctions on 146 “targets” associated with the newly designated Prince Group Transnational Criminal Organization. This action encompasses individuals and shell companies linked to the purported criminal enterprise. As part of this far – reaching operation, which also involves the FBI, the US Department of Justice (DOJ) seized nearly 130,000 bitcoins, valued at approximately $15 billion at the time of the announcement. This marks the largest cryptocurrency seizure in US history.
The Prince Group: Alleged Criminal Operations
OFAC states that the Prince Group organized crime entity consists of the Prince Holding Group, a Cambodia – based firm, its chairman and CEO, Chen Zhi, along with his associates and business partners. Publicly, the company portrays itself as “one of the largest conglomerates in Cambodia,” claiming involvement in real estate development and financial services. However, the DOJ alleges that “covertly,” Chen and other executives transformed the Prince Group into “one of Asia’s largest transnational criminal organizations,” operating at least 10 scam compounds across Cambodia.
Joseph Nocella Jr., a US attorney for the Eastern District of New York, stated in a press release, “As alleged, the defendant oversaw one of the largest investment fraud operations in history, fostering an illicit industry that has reached epidemic proportions. Prince Group’s investment scams have inflicted billions of dollars in losses and immeasurable suffering on victims worldwide.” The DOJ also reports that Chen has not been apprehended and remains at large.
Yvette Cooper, Britain’s foreign secretary, remarked in a statement, “The masterminds behind these abhorrent scam centers are destroying the lives of vulnerable individuals and purchasing London properties to stash their ill – gotten gains.” The UK has also imposed financial sanctions on Chen, the Prince Group, and other related entities. The UK’s sanctions “freeze” businesses and properties in London allegedly linked to Chen, including a £12 million ($16 million) mansion in North London and a £100 million ($133 million) office building in the City of London.
An email sent by WIRED to the media contact address listed on the Prince Holding Group website was immediately returned.
Significance of the Operation
John Wojcik, a senior threat researcher at security firm Infoblox, specializing in Asia and previously involved in tracking scam compounds and Southeast Asian cybercrime at the United Nations Office on Drugs and Crime, said, “Today’s coordinated action represents the most significant blow to date against cybercrime networks operating out of Southeast Asia.” Wojcik contends that this was not an ordinary criminal syndicate but “one of the region’s largest cybercriminal and money – laundering enterprises, and a clear leader in criminal fintech and infrastructure.”
Mysterious Bitcoin Origins
In an unexplained turn of events, crypto – tracing firm Elliptic pointed out in a blog post on Tuesday that the bitcoins seized by US law enforcement seemingly match the funds reportedly stolen in 2020 from a Chinese cryptocurrency mining firm named Lubian. The current indictment depicts Lubian as part of Chen Zhi’s money – laundering operation, potentially an alleged scheme to funnel dirty scam funds into cryptocurrency mining hardware to generate new, untainted coins.
The identity of the 2020 thief, or even whether a theft occurred, remains unclear. Elliptic co – founder Tom Robinson speculates, “It could be that Chen Zhi faked the theft as part of a money – laundering scheme to obfuscate the money trail. The second possibility is that the theft was genuine. Potentially, it could have been the US government. But it is more likely to have been someone else.” Robinson further suggests that the thief might have been traced by US law enforcement, who then retrieved the funds.
The “Pig Butchering” Ecosystem
Beyond crypto – mining money – laundering and the mysterious thefts, Chen is accused in the indictment of being a key figure in the Chinese – speaking “pig butchering” ecosystem. Over the past decade, organized crime gangs based in Southeast Asia have established dozens of scam centers across Myanmar, Laos, and Cambodia. Often run by Chinese organized crime groups, these scam compounds have lured individuals from over 60 countries worldwide through fraudulent job advertisements, typically in the tech sector. Once at the compounds, victims have their passports confiscated and are forced to conduct various online scams targeting people globally. Non – compliance can result in beatings or torture. These scam centers are frequently associated with human trafficking, fraud, money – laundering, and online casinos.
The Prince Group’s Alleged Network
The DOJ indictment against Chen and seven unnamed co – conspirators alleges that the Prince Group operated over 100 businesses in 30 countries and names several other purported subsidiaries. The indictment also states that some “local networks,” including one in Brooklyn, New York, worked on behalf of the Prince Group. Since 2015, Chen and company executives are claimed to have constructed and managed “forced – labor scam compounds” across Cambodia and “utilized their political influence in multiple countries to safeguard their criminal enterprise,” including from Chinese police and the Ministry of State Security.
The indictment asserts that “Chen Zhi was directly involved in the management of the scam compounds and maintained records for each, including those tracking scam profits explicitly referring to ‘sha zhu,’ or pig – butchering,” and that there were also “ledgers of bribes to public officials.” One document allegedly in Chen’s possession listed that two scam centers were equipped with 1,250 mobile phones controlling 76,000 social media accounts. The indictment further claims that Chen had images demonstrating “Prince Group’s violent methods” against trafficked individuals, including pictures of bloodied and beaten people.
Record – Breaking Seizure
The seizure of 127,271 bitcoins, worth over $15 billion at the time of confiscation, is by far the largest monetary seizure in the US Justice Department’s history, not only for cryptocurrency but for any form of currency. The previous US law enforcement record was set in 2022 with the seizure of 95,000 bitcoins worth $3.6 billion from a Manhattan couple who later pleaded guilty to stealing them from the Bitfinex exchange. Prior to that, in 2020, a billion – dollar seizure of bitcoins allegedly stolen from the Silk Road dark – web drug market by an unnamed hacker occurred. Meanwhile, in June, UK police seized 61,000 bitcoins worth $6.7 billion from a Chinese woman accused of an investment scam. This sum is larger than the previous US records but less than half of the amount seized from the Prince Group operation.
Implications of the Seizure
Ari Redbord, global head of policy at crypto – tracing firm TRM Labs, notes, “It’s crucial to recognize that this seizure is remarkable not only for its scale but for what it symbolizes.” He adds that the seizure is still a “small fraction” of the money generated by scam centers. “These are not isolated scams; they are large – scale operations driven by forced labor, amplified by the speed and scale of crypto, and connected through sophisticated money – laundering infrastructure spanning Cambodia, Myanmar, Laos, China, and other regions,” Redbord states.
Redbord further remarks that the widespread action “strikes at the operational and financial core” of the extensive scam – center ecosystem. In recent years, researchers tracking the scam compounds in Southeast Asia have witnessed their rapid growth, with ill – gotten funds being invested in increasingly high – tech scam operations. Over the past two years, scam compounds have also emerged outside of Southeast Asia, in the Middle East, Eastern Europe, Latin America, and West Africa.
Redbord concludes, “By targeting the financial architecture – the shell companies, banks, exchanges, and real estate that move and conceal these proceeds – the US and UK are dismantling the economic engine that sustains these crimes. This is the model of a 21st – century counter – threat finance campaign: coordinated, data – driven, and global.”
Updated 2:30 pm ET October 14, 2025: Additional information has been added regarding the traced bitcoins seized, which are linked to an apparent theft from the Lubian mining operation.