Jan 25, 2026
The alleged mastermind of an international fraud operation involving the use of trafficked workers has been arrested, multiple news outlets report, citing Cambodian officials (1).
Chen Zhi, founder and chairman of Prince Holding Group, was arrested in Cambodia and extradited to China on Jan. 6. after a monthslong investigation by both countries.
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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.
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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.
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How to protect yourself
Crypto scams come in many flavors, from romance-investment hybrids to blackmail and impersonation schemes. But they share common DNA: secrecy, urgency and the promise of easy money.
If someone guarantees big returns, insists on crypto transfers or pressures you to move money to a private app or wallet, walk away. Never download software or trading apps you didn’t seek out yourself. And if you’re approached on social media or dating sites with an “investment opportunity,” assume it’s a scam.
If you’ve already sent money, stop sending more and report it immediately to the FTC or the FBI. You should also notify your crypto exchange. While recovery is rare, exchanges can sometimes flag suspicious wallets or freeze assets before they’re laundered.
Unfortunately, once digital assets are moved they can be difficult to retrieve. That’s why vigilance is your strongest defense. If an offer sounds too good to be true, especially when it involves crypto, it may simply be bait.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNN (1)
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Chris Clark is a Kansas City–based freelance journalist covering personal finance, housing and retirement. A former Associated Press editor and reporter, he writes plainspoken stories that help readers make smarter financial decisions.
