A massive Bitcoin movement linked to Chen Zhi, the alleged mastermind of a $14 billion scam, has been reported. Funds valued at nearly $1.7 billion were transferred this Wednesday from wallets recently sanctioned by the U.S. Treasury Department. The alert was issued by the analytics firm Arkham Intelligence, detailing the magnitude of the operation.
On-chain data confirms the transaction. A total of 15,959 BTC (equivalent to $1.72 billion at the time of writing) exited addresses that were blocked last week. These funds were distributed to four new, unknown wallets. The action appears to be an attempt to obscure the connection to the sanctioned addresses. These assets are separate from another $14 billion in BTC that prosecutors have already seized. The U.S. government is currently conducting the largest forfeiture action in the Department of Justice’s (DOJ) history against this organization.
Who is the Prince Holding Group Founder?
Chen Zhi is the founder of Prince Holding Group, a multinational conglomerate based in Cambodia. Last week, U.S. federal prosecutors announced charges against him for wire fraud and money laundering. The DOJ alleges that Prince Holding operated a global cryptocurrency scam network. This network used “pig butchering” methods and forced labor, resulting in billions in losses for victims. Chen Zhi is currently a fugitive from U.S. justice.
This case has generated confusion in the industry. Arkham determined that the $14B seized by the U.S. appears to be the same funds stolen from the Chinese mining pool LuBian in 2020. However, the DOJ itself cited LuBian as one of the companies Chen used to launder money. Analysts like Elliptic question how the funds came into U.S. custody. It is unclear if the funds were stolen from Chen or if the original theft was a covert operation.
The recent Bitcoin movement linked to Chen Zhi demonstrates that the organization still controls a vast fortune. While the DOJ celebrates its record seizure, the alleged scammer is still moving billions. The cryptocurrency market is watching closely. Bitcoin’s (BTC) price reaction has been limited, but the eventual liquidation of the seized funds could generate future volatility in the main digital economy.
