A major case brought by the Department of Justice involving the seizure of bitcoin has brought increased attention to international criminal networks linked to cryptocurrency fraud, human trafficking, and other organized crime. Officials are attempting to seize 127,271 bitcoins, currently valued at around $15 billion.
Key Takeaways:
- Authorities sought forfeiture of 127,271 BTC in a case involving Cambodian national Chen Zhi.
- Federal investigators linked crypto scams to trafficking, money laundering, and organized crime networks.
- DOJ and FBI actions show broader pressure on scam compounds operating across Southeast Asia and beyond.
Record Bitcoin Case Puts Global Scam Compounds Back in Focus
The U.S. Department of Justice (DOJ)’s record bitcoin forfeiture case has returned to focus after new reporting on global scam-compound crackdowns. The case was first announced by the Justice Department on Oct. 14, 2025, when prosecutors unveiled criminal charges against Cambodian national Chen Zhi and a related civil forfeiture complaint.
The Justice Department said Chen, also known as Vincent, founded and chaired Prince Holding Group, a Cambodia-based conglomerate. Prosecutors charged him in Brooklyn with wire fraud conspiracy and money laundering conspiracy. The DOJ also filed a civil forfeiture complaint against approximately 127,271 BTC, worth roughly $15 billion at the time, held in U.S. custody.
The DOJ noted:
“The complaint is the largest forfeiture action in the history of the Department of Justice.”
The Democratic Karen Benevolent Army (DKBA) is a Myanmar-based armed group suspected of having ties to Chinese criminal organizations. The U.S. government has imposed sanctions on the DKBA due to its involvement in large-scale fraud schemes and other international criminal activities. A recent FBI operation, called Haochen, focused on a scam compound in Kyaukhat, Myanmar, controlled by the DKBA. The investigation targeted those running the scam operation and the financial networks supporting it, which preyed on victims in the United States. Authorities seized approximately $30 million believed to be connected to the Tai Chang scam compound and similar operations.
FBI Crackdown Signals New Pressure on Global Scam Networks
Operation Blackout served as the FBI’s umbrella campaign against scam compounds across Asia, Africa, and the Middle East. According to the FBI, the effort combined investigations targeting cryptocurrency fraud, human trafficking, money laundering, and organized crime networks accused of victimizing Americans. The operation brought together multiple investigations, including actions against compounds in Cambodia, Myanmar, Thailand, and the United Arab Emirates (UAE). The case highlights the increasingly global nature of crypto-enabled fraud networks.
The investigation also showed rising cooperation between law enforcement and technology providers. The FBI worked with Starlink, supplying geolocation information that helped identify terminals allegedly supporting scam operations in Myanmar. Starlink suspended more than 7,000 terminals through that effort. The bureau also cited Operation Level Up, a victim-protection initiative established by the FBI and U.S. Secret Service to identify and notify cryptocurrency investment fraud victims. The program has notified 8,935 potential fraud victims and prevented an estimated $562.7 million in losses.
FBI Director Kash Patel said:
We rescued almost 2,000 people forced into labor, stopped over $8 billion in fraudulent schemes run by scam centers, and apprehended close to 300 individuals involved.
The forfeiture case also reflects a broader DOJ effort to disrupt scam-compound networks operating across Southeast Asia. In a separate action announced in April, the DOJ’s Scam Center Strike Force charged two Chinese nationals, seized a Telegram recruitment channel used to attract workers into scam centers, and took control of 503 fraudulent investment websites. The initiative, which coordinates investigations, prosecutions, asset restraints, and victim-protection efforts, also restrained more than $700 million in cryptocurrency allegedly tied to scam-center money laundering.
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2026-06-01 05:57