In a landmark enforcement action, the U.S. Department of Justice (DOJ) has announced the seizure of more than 127,000 bitcoins, valued at over $14 billion, from a sprawling Southeast Asian cybercrime and human trafficking syndicate. The operation marks one of the largest cryptocurrency forfeitures in history and underscores growing international efforts to disrupt cyber-enabled financial crimes.
The coordinated action, revealed on October 14, involved the Drug Enforcement Administration (DEA), the Department of State, and other federal partners. Authorities also unsealed an indictment against Chen Zhi, founder and chairman of Cambodia-based Prince Holding Group, on charges of wire fraud conspiracy and money laundering.
According to U.S. officials, the seized bitcoin was stored in 25 unhosted wallets directly controlled by Chen and his associates. At the time of announcement, the digital assets were worth nearly $15 billion, a record-breaking forfeiture by U.S. law enforcement.
“This investigation exposes a staggering level of fraud, corruption, and criminal greed that allowed billions in illicit funds to move through global financial systems,” said Frank A. Tarentino III, Special Agent in Charge of the DEA’s New York Division. “It also highlights how transnational criminal organizations are increasingly turning to cryptocurrency to conceal their activities.”
A Major Blow to the Cybercrime Economy
The seizure has sent shockwaves through the Southeast Asian cybercrime ecosystem, where organized syndicates have long relied on cryptocurrency for laundering illicit profits. Analysts estimate that illicit wallets collectively hold around $15 billion, while another $60 billion circulates through dark web markets, fraud shops, illegal pharmacies, and terrorist financing networks, according to Chainalysis.
Southeast Asian criminal groups—operating from Cambodia, Laos, Myanmar, and Thailand—are believed to have stolen over $10 billion from U.S. victims in 2024 alone, generating tens of billions more in global fraud each year.
While the recovered bitcoin represents only 0.6% of the 19.9 million in circulation, the symbolic and strategic value of the operation is immense, experts say.
“This seizure shows that even static hoards in unhosted wallets can be traced and recovered,” explained Ari Redbord, Head of Policy and Government Affairs at TRM Labs and former senior official at the U.S. Treasury. “It’s a chilling message for criminals — and a reminder that blockchain transparency works.”
Inside the Prince Group’s Cyber Operations
The Prince Group posed as a legitimate real estate and investment conglomerate headquartered in Cambodia, but U.S. investigators describe it as a criminal enterprise built on fraud, forced labor, and human trafficking.
According to the DOJ and the U.S. Treasury Department, the organization maintained bitcoin mining operations and 10 forced-labor compounds across Cambodia, where trafficked workers were coerced into operating investment and romance scams. Victims were often imprisoned, tortured, and traded between compounds.
The syndicate used complex money-laundering techniques such as “spraying” (splitting transactions into thousands of smaller transfers) and “funneling” (reconsolidating funds into centralized wallets). These methods ultimately led to the recovery of assets held in wallets personally controlled by Chen.
While many cybercriminal groups have shifted away from stablecoins due to their centralized oversight and freezing capabilities, bitcoin’s decentralized nature and “self-custody” appeal have made it the currency of choice for large criminal operations.
“Criminal organizations often believe that by holding their bitcoin offline, they’re untouchable,” said Elliptic, a blockchain analytics firm. “But this case proves governments have been tracking these movements for years — and can strike when the time is right.”
The Complexity of Global Crypto Enforcement
Despite the success, experts warn that replicating this kind of seizure will be extremely challenging. The investigation spanned multiple countries and took years to complete, with key enforcement activity likely occurring in mid-2024.
According to TRM Labs, blockchain monitors noticed suspicious activity in June and July 2024, when the wallets suddenly became active — a telltale sign of coordinated law enforcement operations.
“These missions are incredibly difficult,” Redbord explained. “They demand cross-border coordination, multi-agency intelligence, and—most importantly—access to private keys. Investigators can map wallets indefinitely, but without the keys, they can’t move assets. The fact that the U.S. gained control here means digital and physical evidence aligned perfectly.”
Implications for the Future of Crypto Crime
The operation may influence future criminal behavior, particularly around bitcoin adoption. Although many illicit actors prefer bitcoin for its autonomy and resistance to freezing, experts note that this case reveals its vulnerability to persistent investigation.
“There’s growing evidence that cybercriminals are comfortable storing value in bitcoin,” said Eric Jardine, Cybercrime Research Manager at Chainalysis. “Unlike stablecoins, which can be frozen, bitcoin gives them control. But as we’ve seen, that doesn’t guarantee immunity from law enforcement.”
Whether this unprecedented seizure will cause criminal organizations to pivot away from bitcoin remains uncertain. However, analysts agree that it sends a powerful message: no digital asset is beyond the reach of coordinated, intelligence-driven law enforcement efforts.