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The US Treasury Department just expanded its crackdown on one of the largest crypto fraud networks ever identified. On June 23, the Office of Foreign Assets Control (OFAC) sanctioned nine individuals and 26 entities connected to the Prince Group, a Cambodia-based conglomerate accused of orchestrating sprawling cyber fraud operations that have drained billions from American victims.
This isn’t the first time the Prince Group has landed in Washington’s crosshairs. It’s actually the second major wave of sanctions, building on an October 2025 action that was, by any measure, enormous.
The backstory is staggering
Back in October 2025, the US and UK coordinated a joint action that designated the Prince Group as a transnational criminal organization. That initial salvo sanctioned 146 individuals and entities tied to the network. It also produced an indictment against the group’s founder, Chen Zhi, on charges of wire fraud and money laundering conspiracy.
But the headline number from that action was the Bitcoin seizure. Authorities confiscated approximately 127,271 bitcoins, valued at roughly $15 billion at the time. That marked the largest forfeiture in US history, full stop. Not the largest crypto forfeiture. The largest forfeiture of any kind.
Chen Zhi was subsequently arrested and extradited to China in January 2026, though the broader network apparently continued operating with enough infrastructure intact to warrant this latest round of sanctions.
What the Prince Group actually did
The allegations center on what law enforcement calls “pig butchering” scams. Scammers build fake romantic or investment relationships with victims over weeks or months, “fattening” them up with trust before convincing them to invest in fraudulent crypto platforms. By the time the victim realizes the platform is fake, their money is gone, laundered through layers of wallets and shell companies.
The Prince Group’s operation allegedly took this model and industrialized it. According to the US government’s findings, the network ran forced-labor compounds, meaning the scammers themselves were often trafficking victims coerced into running the fraud schemes. Workers in these compounds, typically located in Southeast Asia, were reportedly subjected to physical abuse and had their documents confiscated.
The scale of the problem extends well beyond just the Prince Group. Americans lost at least $10 billion to Southeast Asia-based scam operations in 2024 alone, representing a 66% increase compared to the prior year. The Prince Group was allegedly one of the largest nodes in that ecosystem, with interests spanning real estate, banking, and other sectors that provided convenient laundering channels.
The broader enforcement pattern
The Prince Group has denied all allegations of wrongdoing, maintaining that its business practices are legitimate.
The UK imposed its own sanctions targeting money laundering networks connected to the Prince Group, signaling that this isn’t just a US priority.
What this means for investors
First, the seized Bitcoin. Approximately 127,271 coins sitting in government custody represents a meaningful chunk of circulating supply. How and when those coins are liquidated, whether through auction, return to victims, or some other mechanism, could create notable selling pressure. The US Marshals Service has historically auctioned seized crypto in large blocks, and buyers at those auctions tend to get favorable pricing.
Second, the compliance burden. Every major enforcement action like this gives regulators more ammunition to push for stricter know-your-customer and anti-money-laundering rules across crypto platforms. Exchanges that touch US markets will likely face heightened scrutiny around transaction monitoring, particularly for patterns associated with pig butchering schemes.
Third, the victim recovery angle. Ongoing asset recovery efforts could set precedents for how defrauded crypto investors recoup losses.
The 66% year-over-year increase in scam losses during 2024 suggests the problem was getting worse before these major enforcement actions landed.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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