Who is Chen Zhi and what is he accused of?

Chen Zhi is accused of masterminding a global cryptocurrency scam that defrauded victims of billions of dollars, allegedly using enslaved workers.

How much money was seized in the Chen Zhi crypto scam investigation?

U.S. federal prosecutors seized approximately $15 billion in Bitcoin, believed to be proceeds from the fraudulent scheme.

Why was Chen Zhi extradited to China instead of facing U.S. courts?

Chen Zhi was extradited to China because the United States does not have an extradition agreement with China.

Home / Crime and Justice / Crypto Kingpin Chen Zhi Arrested in Global Scam

Crypto Kingpin Chen Zhi Arrested in Global Scam

8 Jan

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Summary

Chen Zhi allegedly masterminded a global crypto scam using enslaved workers.
US prosecutors seized $15 billion in Bitcoin from the alleged fraudulent scheme.
Chen Zhi was extradited to China, complicating US legal pursuits.

Crypto Kingpin Chen Zhi Arrested in Global Scam

Chen Zhi, a 38-year-old citizen of China and Cambodia, has been arrested and extradited to China. U.S. federal prosecutors in Brooklyn had indicted him for allegedly orchestrating a vast cryptocurrency scam. This scheme, which utilized thousands of enslaved workers in Southeast Asia, is believed to have defrauded victims of billions of dollars.

Prosecutors stated that Chen Zhi used his Cambodian holding company, Prince Group, as a front for these illicit operations. Between 2015 and the indictment in October (year not specified in article, but likely recent relative to indictment), his associates allegedly built forced-labor camps. A conspirator reportedly boasted of making over $30 million daily in 2018 alone.

The elaborate scams involved building relationships with victims, often through social media, to convince them to invest in fake opportunities. Proceeds were laundered through various businesses, including online gambling and crypto, with illicit funds used for luxury purchases. The United States does not have an extradition treaty with China, making Chen Zhi's transfer a significant development.