Chinese tycoon tied to $11B ‘pig butchering’ bitcoin scam taken into custody | Latest Tech News
A Chinese-born tycoon who is needed in the US for allegedly stealing at least $11 billion price of bitcoin as half of a “pig butchering” scam focusing on Americans and others has been taken into custody in Asia, according to local authorities.
Chen Zhi, chairman of Cambodia-based multinational conglomerate Prince Group, was arrested by law enforcement officers in Cambodia and extradited to China, Cambodian authorities officers said on Wednesday.
Cambodia’s inside ministry said it arrested Chen on Tuesday at the request of the Chinese authorities “within the scope of cooperation in combating transnational crime.”
Chen Zhi, the chairman of Prince Group, is pictured during a public look in Cambodia prior to his arrest. Prince Holding Group
Chen, who is a naturalized Cambodian citizen, was subsequently extradited to China, according to the Wall Street Journal.
It is unclear if Chinese authorities intend to indict Chen.
A so-called “pig butchering” scam is a type of cryptocurrency fraud in which victims are slowly groomed through faux online relationships before being steered into bogus investment platforms.
fraudmers spend weeks or months building trust — often posing as romantic pursuits or profitable buyers — before convincing targets to switch cryptocurrency to accounts they control, draining victims of their financial savings once they attempt to withdraw funds.
The Justice Department announced in October that it was looking for Chen’s arrest on expenses of wire fraud and money laundering after seizing 127,271 bitcoin, which at the time was price around $15 billion.
Since then, the worth of the digital currency has fallen by almost 30%.
An image circulated by investigators exhibits an injured man alleged to have been held inside a scam compound linked to the community tied to Chen Zhi. United States District Court Eastern District Of New York
Prosecutors say the stolen cryptocurrency was funneled into lavish personal spending, including luxurious watches, high-end paintings, yachts, non-public jets and prime real estate, with authorities freezing belongings such as a $16 million London mansion, a $126 million workplace building in town’s financial district and even a Picasso portray bought in New York.
Chen and Prince Group have denied the allegations.
China doesn’t have a formal extradition treaty with the United States, raising questions about whether or not Chen may ever be transferred to face expenses in US court.
Extraditions between the 2 international locations are uncommon and sometimes dealt with through advert hoc diplomatic preparations somewhat than a standing legal framework.
The Post has reached out to the Justice Department and the Chinese Embassy in Washington, DC, looking for remark.
Chen is alleged to have operated huge online “scam centers” that used trafficked staff and compelled labor to defraud victims in the US, UK and at least a dozen other international locations.
A person bearing seen marks on his face is shown in an image offered by authorities documenting alleged abuse inside a scam compound. United States District Court Eastern District Of New York
US authorities allege that Chen and Prince Group owned and operated at least 10 scam compounds across Cambodia where 1000’s of staff — many of whom had been trafficked from China — had been held against their will and compelled into labor that entailed blackmailing or tricking people into making faux investments.
Authorities say many of the trafficked staff compelled to run the scams had been themselves victims, recruited with guarantees of authentic jobs before having their passports confiscated and being subjected to threats, beatings and confinement if they failed to meet fraud quotas.
The US authorities has alleged that Chen and Prince Group used their political affect and paid bribes in order to keep away from felony legal responsibility in China.
Dozens of people are seen sitting on the ground during a law enforcement raid at an alleged online scam operation in Cambodia. United States District Court Eastern District Of New York
Brooklyn federal prosecutors unsealed an indictment in federal court alleging that Chen assumed the alias of “Vincent” and “mastermind[ed]…a spawling cyber-fraud empire operating under the Prince Group umbrella, a criminal enterprise built on human suffering.”
According to the Justice Department, Chen’s operation had “malicious actors” contact “unwitting victims through messaging or social media applications and convinced them to transfer cryptocurrency to specified accounts based on false promises that the funds would be invested and generate profits.”
“In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators.”
US officers have described the alleged scheme as one of the biggest cryptocurrency fraud instances ever uncovered, with victims often drained of life financial savings after being lured into faux online relationships that slowly funneled them into bogus investment platforms managed by the group.
Federal prosecutors continue to pursue the forfeiture of seized cryptocurrency and examine other alleged members of the community.
Stay informed with the latest in tech! Our web site is your trusted source for breakthroughs in artificial intelligence, gadget launches, software program updates, cybersecurity, and digital innovation.
For contemporary insights, skilled coverage, and trending tech updates, go to us recurrently by clicking right here.
