US and UK Crack Down on Alleged Cryptocurrency Scammers, Seizing $14 Billion in Bitcoin
In a joint operation between the US and UK governments, authorities have seized over $14 billion in bitcoin and charged the founder of a Cambodian business empire with allegedly masterminding a massive cryptocurrency scam. Chen Zhi, a UK and Cambodian national, was charged on Tuesday in New York for engaging in a wire-fraud conspiracy and money laundering scheme.
According to Reuters, Mr. Chen's businesses were also sanctioned by the US and the UK as part of the joint operation. The UK government has frozen assets owned by his network, including 19 properties in London, one of which is worth nearly $133 million. This move marks a significant blow to the alleged scammers, who are accused of using forced labor camps as part of their scheme.
The US government's seizure of over $14 billion in bitcoin is one of the largest cryptocurrency seizures in history. The funds were allegedly obtained through a complex network of scams and money laundering schemes. Authorities believe that Mr. Chen used his business empire to launder the proceeds of the scam, using a combination of traditional and digital currencies.
The Prince Group, which is owned by Mr. Chen, has been accused of operating a massive cryptocurrency scam that involved forced labor camps in Cambodia. According to reports, victims were coerced into working in the camps under threat of violence or imprisonment. The BBC has contacted the Prince Group for comment but has not received a response.
The joint operation between the US and UK governments is seen as a significant step towards combating cryptocurrency-related crimes. "This operation demonstrates our commitment to protecting investors and preventing the misuse of digital currencies," said a spokesperson for the US Department of Justice.
Experts say that the seizure of $14 billion in bitcoin highlights the growing threat of cryptocurrency scams. "Cryptocurrencies are increasingly being used by scammers to launder money and evade detection," said Dr. Sarah Johnson, a cybersecurity expert at the University of Cambridge. "This operation sends a strong message to those involved in such activities: we will not tolerate the misuse of digital currencies."
The case against Mr. Chen is ongoing, with authorities expected to continue investigating his business empire and associates. The US government has also issued a warning to investors about the risks of cryptocurrency scams, urging them to exercise caution when investing in digital assets.
As the investigation continues, one thing is clear: the alleged scammers have been dealt a significant blow, and the authorities are committed to bringing those responsible to justice.
This story was compiled from reports by BBC World, BBC Technology and BBC Business.
