Alleged mastermind behind global scam that swindled billions from victims arrested, extradited to China. How to protect yourself from crypto fraud

It’s unclear what charges Chen faces in China, however, the U.S. previously indicted him in absentia, charging him with wire fraud conspiracy and money laundering conspiracy.

Prosecutors accused him of leading a widespread cryptocurrency investment scam that involved forced-labor compounds across Cambodia. Individuals were allegedly held against their will and engaged in “pig butchering” scams, swindling billions of dollars from victims around the world.

“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York said in a news release.

Meanwhile, Chen and his associates lived lavishly, buying private jets, vacation homes and rare artwork, prosecutors say.

Reports say Prince Holding Group has previously denied involvement in scam operations.

What is pig butchering?

Pig butchering scams take their name from the way scammers “fatten up” victims before bleeding them dry, building emotional or financial trust before wiping out their savings.

Scammers pose as friendly acquaintances or love interests, often using fake identities, and slowly coax victims into investing in what appear to be legitimate, supposedly high-return opportunities, commonly with the use of crypto.

Victims are encouraged to keep depositing money into a fake trading platform until the scammers strike. Accounts are suddenly locked, funds disappear and the perpetrators move on to their next target.

The FBI’s Internet Crime Complaint Center says Americans reported $9.3 billion in losses to digital crimes and fraud related to cryptocurrency in 2024.