"The US government has seized over $14bn (10.5bn) in bitcoin and charged the founder of a Cambodian business empire with allegedly masterminding a massive cryptocurrency scam. UK and Cambodian national Chen Zhi was charged on Tuesday in New York for allegedly engaging in a wire-fraud conspiracy and running a money laundering scheme. Mr Chen's businesses were sanctioned by the US and the UK as part of a joint operation."
"US prosecutors say it is one the biggest financial takedowns in history and the largest ever seizure of bitcoin, with approximately 127,271 bitcoin being held by US government. Mr Chen, who remains at large, is accused of being the mastermind behind a "sprawling cyber-fraud empire" operating under his multi-national company, the Prince Group, said the US Department of Justice (DOJ). The Cambodia-based group's website says its businesses include property development, and financial and consumer services."
"Unwitting victims were contacted online and convinced to transfer cryptocurrency based on false promises that the funds would be invested and generate profits, the DOJ said. Prosecutors alleged that the company, under Mr Chen's direction, built and operated at least ten scam compounds throughout Cambodia, according to court documents seen by the BBC. Mr Chen was accused of managing the compounds and tracked profits from the scams, said prosecutors. His accomplices allegedly procured millions of mobile phone numbers and set up "phone farms" to conduct call centre scams, according to the court documents."
US authorities seized over $14bn in bitcoin and are holding approximately 127,271 bitcoins as part of a major financial takedown. Chen Zhi, a UK and Cambodian national, was charged in New York with wire-fraud conspiracy and money laundering, and his companies were sanctioned with assets frozen, including 19 London properties. Prosecutors allege Chen led the Prince Group and operated scam compounds in Cambodia that enticed victims online with false investment promises. Alleged accomplices procured millions of mobile numbers, ran call-centre operations and set up "phone farms" to facilitate widespread cryptocurrency fraud.
Read at www.bbc.com
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