Global Anti-Fraud Victory: Chen Zhi, who once controlled Asia's largest scam empire, has been arrested

In March 2025, local time, an intercontinental law enforcement operation came to a close—Cambodian authorities successfully arrested Chen Zhi, the notorious leader of Prince Group. The criminal empire he built is not only known for industrial-scale “pig butchering” scams but also involved serious crimes such as forced labor and billions of dollars in money laundering. Previously, the U.S. Department of Justice had seized 127,271 Bitcoins (worth approximately $15 billion at the time), directly targeting the group’s illegal financial network. This arrest marks a significant crackdown by the international community on organized crime driven by cryptocurrency.

Industry of Fraud: From Small-Scale Scams to Transnational Empire

Traditional “pig butchering” scams were once just isolated individual acts. Scammers would initiate conversations with victims via dating apps, build trust over several weeks (industry insiders call this “raising pigs”), then induce them to invest in fake cryptocurrency platforms, and finally disappear with the funds (“slaughter”).

But Chen Zhi and Prince Group did far more than small-scale schemes. They transformed a simple scam method into an industrial, cross-border operation:

Meticulously designed scam process:

• Scammers initiate fake identity chats via social media and dating apps
• Spend weeks or even months building trust and emotional bonds
• Gradually guide victims to discuss high-yield “cryptocurrency investment opportunities”
• Redirect victims to group-controlled gold trading platforms for scams, showing false profit reports
• Induce large deposits, then freeze or vanish with the funds, with scammers disappearing immediately

This process is highly efficient and difficult to crack because Prince Group systematized and divided tasks—internal resources include personnel, performance departments, and professional money laundering teams, operating like a real multinational corporation.

Appalling Cost: Forced Labor Scam Factories

Even more shocking is that Chen Zhi further reduced costs and increased efficiency by integrating forced labor into the scam industry chain.

According to international investigation reports, Prince Group operates large-scale scam zones in Cambodia, Myanmar, Laos, and other regions. These zones are superficially called “tech parks” or “customer service centers,” but in reality are modern-day slave factories:

Horrific realities inside these zones:

• Victims (mostly impoverished workers from other Southeast Asian countries) are lured by false high-salary job ads, only to have their passports confiscated upon arrival
• Forced to work over 12 hours daily, tasked with sending scam messages to potential victims worldwide
• Subjected to harsh performance quotas; failure results in physical punishment, torture, or being sold to other criminal groups
• International organizations estimate tens of thousands remain trapped in such zones

Anya Petrova, senior researcher at the Global Financial Integrity Network, stated: “What we are witnessing is not just professionalized online scams but an enterprise-level transformation of criminal organizations. They are no longer loose scam gangs but have evolved into complex transnational groups. Forced labor allows these scam factories to replicate on a large scale, but at the cost of systematic human rights violations.”

Tracking $15 Billion and International Cooperation

Before Chen Zhi’s arrest, U.S. authorities launched an unprecedented effort to track crypto assets.

In 2024, the U.S. Department of Justice, utilizing blockchain analysis and traditional financial investigations, successfully identified and seized 127,271 Bitcoins directly linked to Prince Group, valued at $15 billion. This move demonstrated that law enforcement can effectively trace and intercept illegal digital assets despite complex obfuscation techniques like chain mixing and multiple wallet jumps.

International law enforcement collaboration:

This unprecedented international cooperation ultimately formed a comprehensive encirclement of Prince Group, leading to Chen Zhi’s capture.

The Logic Behind Technical Tracking and Investigation

Many wonder: why, despite being called “anonymous,” is blockchain a powerful tool for law enforcement?

The answer lies in the core feature of blockchain—immutability. Although cryptocurrency transactions appear anonymous, each transaction is permanently recorded on a public ledger. Law enforcement can break through “anonymity” through:

• Exchange entry/exit tracking: Intercepting when victims pay funds to scam platforms or scammers attempt to convert crypto to fiat
• On-chain behavior analysis: Identifying transaction patterns, fund flows, mixing techniques, and other behavioral features of specific wallets
• Traditional investigation integration: Combining bank records, communication logs, passport entry/exit data
• Cross-border intelligence sharing: US, UK, Cambodia law enforcement agencies exchanging information, weaving an inescapable net

Reflection After the Arrest: End or Turning Point?

Chen Zhi’s arrest is undoubtedly a law enforcement victory, but experts warn it is far from the end of the scam war.

Cybersecurity analyst Mark Thorne pointed out: “These criminal networks are highly adaptable. Taking down a leader may cause the group to split, but it won’t eliminate the pattern itself. Scam groups will migrate to new jurisdictions, change organizational proxies, and adopt more covert methods.”

Future anti-scam efforts require a multi-pronged approach:

1. Continuous asset tracking: Keep updating blockchain analysis to trace remaining unfrozen illegal funds
2. Enhanced exchange regulation: Strengthen KYC and AML standards for crypto exchanges
3. Victim education: Conduct large-scale training on scam recognition, especially targeting vulnerable populations
4. Geopolitical pressure: Apply ongoing pressure on jurisdictions harboring scam groups through corruption and legal reforms
5. Zone dismantling operations: Collaborate with ASEAN countries to systematically identify and close scam factories

Dual Implications for the Crypto Industry

The Chen Zhi case presents complex challenges for the entire crypto ecosystem.

On one hand, successful tracking demonstrates the enormous potential of blockchain as a law enforcement tool. Compared to opaque traditional finance, blockchain’s traceability makes illicit fund flows transparent. On the other hand, high-profile criminal cases deepen public negative perceptions of cryptocurrencies and scams, damaging industry reputation.

Industry groups are now advocating for clearer regulatory frameworks to distinguish legitimate innovation from criminal abuse. Meanwhile, compliant exchanges and projects are proactively strengthening internal risk controls to avoid becoming breeding grounds for scams.

Conclusion

Chen Zhi’s capture in Cambodia signifies a strong blow by the international community against organized crypto-driven crime. Seizing $15 billion worth of Bitcoin, dismantling a transnational scam empire, and rescuing thousands of enslaved victims are commendable achievements.

But the deeper warning is that scams exploit eternal human weaknesses. Whether traditional “pig butchering” or crypto variants like gold trading scams, scammers are always seeking new technologies, virtual identities, and cross-border money laundering routes.

The global society must continue the fight: strengthen regulation, fund victim aid, persist in dismantling scam zones, and promote scam awareness education—nothing can be overlooked. Only then can we prevent such groups from simply transforming and resurging elsewhere. Chen Zhi’s case is a mirror reflecting the intersection of technological progress, human greed, and organized crime’s darkness, reminding us that the social threat will never truly cease.