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- reporter, Lauren Turner
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The US and UK governments have begun sanctions against Cambodia’s ‘Prince Group’, which is suspected of leading large-scale cryptocurrency fraud by confining victims and subjecting them to forced labor. The U.S. government announced that it had confiscated about $14 billion (about 20 trillion won) worth of Bitcoin from the group and indicted its founder, Chairman Chen Zhi.
Chairman Chun, who is of British and Cambodian nationality, was indicted on charges of telebanking fraud and money laundering in New York on the 14th (local time).
Chairman Chen’s companies were also included in the sanctions list of both countries as part of this joint operation.
Additionally, the British government announced that it had frozen assets related to Chairman Chun’s network, including 19 real estate properties in London. One of these is known to be worth about 100 million pounds (about 190 billion won).
The BBC has requested a statement from Prince Group.
U.S. prosecutors said that the number of bitcoins confiscated amounted to approximately 127,271 (approximately 20 trillion won), making it one of the largest financial crackdowns in history and the largest seizure of bitcoins in history.
According to the U.S. Department of Justice, Chairman Chen, who is still on the run, is accused of running a “vast cyber fraud empire” through the multinational company Prince Group he founded.
The Cambodia-based group’s official website says its businesses include real estate development, finance and consumer services. However, the U.S. Justice Department alleged that the group was running one of Asia’s largest transnational criminal organizations.
According to the Ministry of Justice, they secretly approached victims and induced them to send cryptocurrency money by falsely promising investment returns.
According to court documents dated October 8 and obtained by the BBC, prosecutors alleged that under Chairman Chen’s direction, the company built and operated at least 10 fraudulent facilities across Cambodia.
According to prosecutors, Chairman Chun is accused of running these facilities, which were designed to reach as many victims as possible.
In addition, according to the court documents, the accomplices are accused of obtaining millions of phone numbers and setting up a so-called “mobile phone farm” to commit call center fraud.
It is said that two of these fraudulent facilities were equipped with 1,250 mobile phones that managed approximately 76,000 social media accounts.
Prosecutors said the documents in Prince Group’s name included specific tips to avoid suspicion and build trust in victims, including not using photos of “too beautiful” women as profiles.
image copyright, US District Court EDNY
John Eisenberg, Assistant Attorney General for the U.S. Department of Justice’s National Security Division, condemned the Prince Group as a “criminal organization built on human suffering.” He added that the company committed human trafficking, imprisoned victims in prison-like facilities and forced them to commit online fraud targeting thousands of people around the world.
According to the U.S. Department of Justice, Chairman Chun and his accomplices used the proceeds of these crimes to enjoy a life of lavish travel and revelry, and to purchase “extravagant” items such as watches, private jets, and rare artwork, including a Picasso painting purchased at a New York auction house.
If found guilty, Chairman Chen could face up to 40 years in prison.
Meanwhile, Chairman Cheon and his accomplices are believed to have established a number of companies in the British Virgin Islands and invested in real estate in the UK.
According to an announcement by the British Foreign Office on the 14th, the assets owned by these related networks include an office building worth 100 million pounds (approximately 190 billion won) in central London, a 12 million pound mansion in north London, and 17 apartments in London.
As a result of this joint operation by the US and UK authorities, Chairman Chun has been subject to sanctions and is now completely blocked from the UK financial system. The Prince Group has also been subject to sanctions in the United States and has been designated as a criminal organization.
British Foreign Secretary Yvette Cooper said they had “purchased property in London to destroy the lives of vulnerable people and hoard their own money.”
“Together with our ally the United States, we are taking decisive action to tackle the growing international threat posed by these (criminal) networks. We are taking action to defend human rights, protect the British people and get dirty money off our streets.”
The British Foreign Office reported that Chairman Chun and the Prince Group built a casino and building complex that was used as a fraud center and laundered the money. He then explained that in addition to Prince Group, other companies involved in this fraud suspicion, including Jinbei Group, Golden Fortune Resort World, and Biex Exchange, were also included in the sanctions.
The two fraud centers, reportedly operated by Jinbei Group and Golden Fortune Resort, were mentioned in Amnesty International’s report earlier this year on forced labor and torture in fraud centers in Cambodia.
According to the Ministry of Foreign Affairs, those working at the fraud centers include foreigners who came to the country on the promise of legitimate jobs and are then threatened and coerced into committing fraud.
The Foreign Office said the criminals operate on an “industrial scale” in the UK and elsewhere, luring victims through a variety of methods, including romance scams.
David Hanson, the Home Office’s deputy head of fraud, said: “Fraudsters steal the life savings of the most vulnerable, destroy trust and destroy lives. We will not tolerate this.”
How does the use of blockchain analytics contribute to disrupting transnational cryptocurrency-based crime?
Table of Contents
- 1. How does the use of blockchain analytics contribute to disrupting transnational cryptocurrency-based crime?
- 2. US and UK Disrupt Cambodian Criminal network with $20 Trillion Won Bitcoin Seizure
- 3. The scale of the Operation: A Record-Breaking cryptocurrency Confiscation
- 4. Unraveling the Criminal Enterprise: Scam Operations and Money Laundering
- 5. International Collaboration: US, UK, and Cambodian Authorities
- 6. the Role of Blockchain Analytics in the Seizure
- 7. Implications for Cryptocurrency Regulation and Enforcement
- 8. Real-World example: Similar Cryptocurrency Seizures
- 9. Benefits of Disrupting Criminal Cryptocurrency Networks
- 10. Practical Tips for Protecting Yourself from Cryptocurrency Scams
US and UK Disrupt Cambodian Criminal network with $20 Trillion Won Bitcoin Seizure
The scale of the Operation: A Record-Breaking cryptocurrency Confiscation
In a landmark operation demonstrating international cooperation against cybercrime, authorities in the United States and the United Kingdom have successfully dismantled a meaningful criminal organization operating out of Cambodia. the core of this disruption? A massive seizure of Bitcoin and other cryptocurrencies valued at a staggering 20 trillion Korean Won (approximately $15 billion USD as of October 16, 2025). This represents one of the largest cryptocurrency seizures in history, highlighting the growing sophistication – and scale – of illicit activities leveraging digital assets.
Unraveling the Criminal Enterprise: Scam Operations and Money Laundering
The Cambodian-based organization was primarily involved in running refined online scams, targeting individuals globally. These scams reportedly included:
* pig Butchering Scams: A common tactic where fraudsters build relationships with victims online before convincing them to invest in fake platforms.
* Investment Fraud: Promising high returns on non-existent investment opportunities.
* Romance Scams: Exploiting emotional connections to defraud victims of significant sums.
The seized Bitcoin was instrumental in facilitating these scams, serving as the primary method for receiving and laundering illicit funds. Investigations revealed a complex network of cryptocurrency wallets and exchanges used to obscure the origin and destination of the stolen money. Money laundering through cryptocurrency is a major concern for global law enforcement.
The success of this operation hinged on close collaboration between law enforcement agencies in the US, the UK, and Cambodia.
* US Department of Justice (DOJ): Led the investigation and coordinated asset seizure efforts.
* UK National Crime Agency (NCA): Provided crucial intelligence and technical expertise.
* Cambodian National Police: Assisted with on-the-ground investigations and arrests.
This coordinated approach underscores the increasing recognition that combating transnational crime requires a unified, international response.The operation demonstrates the effectiveness of sharing intelligence and resources to disrupt criminal networks operating across borders.
the Role of Blockchain Analytics in the Seizure
A key component of the investigation was the use of blockchain analytics tools. these tools allowed investigators to trace the flow of bitcoin through the network, identifying key wallets and transactions associated with the criminal organization.
* Chainalysis: A leading provider of blockchain data and analysis.
* Elliptic: Another prominent firm specializing in cryptocurrency tracing.
These technologies are becoming increasingly vital in combating cryptocurrency crime,enabling law enforcement to follow the money and identify perpetrators. The ability to de-anonymize Bitcoin transactions is a powerful weapon in the fight against illicit finance.
Implications for Cryptocurrency Regulation and Enforcement
This massive seizure is highly likely to intensify calls for greater regulation of the cryptocurrency industry. While Bitcoin and other cryptocurrencies offer legitimate benefits, their anonymity and decentralized nature can be exploited by criminals.
* Increased KYC/AML Regulations: Expect stricter “Know Your Customer” (KYC) and Anti-Money Laundering (AML) requirements for cryptocurrency exchanges and service providers.
* enhanced Blockchain Monitoring: Governments may invest more heavily in blockchain analytics tools and expertise.
* International Standards: Efforts to harmonize cryptocurrency regulations across different jurisdictions will likely accelerate.
The case also highlights the importance of educating the public about the risks of cryptocurrency scams and the need for caution when investing in digital assets.
Real-World example: Similar Cryptocurrency Seizures
This isn’t the first time authorities have successfully seized significant amounts of Bitcoin linked to criminal activity.
* 2022: Silk Road Bitcoin Seizure: The US DOJ seized $3.6 billion in Bitcoin linked to the dark web marketplace Silk Road.
* 2021: Colonial Pipeline Ransomware: A portion of the $4.4 million ransomware payment made to Colonial Pipeline was recovered by the DOJ.
These cases demonstrate a growing trend of law enforcement successfully targeting cryptocurrency used in criminal enterprises.
Benefits of Disrupting Criminal Cryptocurrency Networks
Successfully dismantling these networks offers several key benefits:
* victim Recovery: While full recovery of stolen funds is often impossible,seizures can provide resources for victim compensation.
* Deterrence: High-profile cases send a strong message to criminals that their activities will not be tolerated.
* Financial System Integrity: Disrupting money laundering operations helps protect the integrity of the global financial system.
* Reduced Scam Activity: Removing key players from the ecosystem can reduce the prevalence of online scams.
Practical Tips for Protecting Yourself from Cryptocurrency Scams
* Be Skeptical: If an investment prospect sounds too good to be true, it probably is.
* Do Your Research: Thoroughly investigate any cryptocurrency project or exchange before investing.
* Use Strong passwords: Protect your cryptocurrency wallets and accounts with strong, unique passwords.
* Enable Two-Factor Authentication (2FA): Add an extra layer of security to your accounts.
* Be wary of Unsolicited Offers: Avoid clicking on
