Singaporean authorities have frozen over S$150 million (about $106 million USD). The assets are linked to Chen Zhi, chairman of Cambodia’s Prince Holding Group. The measure, initially reported by Caixin on October 30, is part of an international investigation into a vast transnational Bitcoin fraud network valued at $14.4 billion. The police action targeted properties, bank accounts, vehicles, and a yacht.
Likewise, the operation in Singapore is an extension of international efforts. US and UK authorities announced criminal indictments against Chen in mid-October. The U.S. Department of Justice (DOJ) alleges that Prince Holding Group evolved into a criminal enterprise. It lured workers to Cambodia with false job offers. The workers were forced to execute “pig butchering” scams. These scams manipulate online victims into investing in fake crypto platforms.
How was the money laundered using Bitcoin mining?
According to U.S. prosecutors, the network used a complex laundering system. The stolen funds were moved through more than 100 shell companies. The money was channeled through cryptocurrency exchanges and mining operations. The goal was to convert illicit proceeds into “clean” Bitcoin. Entities like Warp Data in Laos and the Chinese mining pool LuBian were allegedly used for this purpose. The U.S. Office of Foreign Assets Control (OFAC) has already sanctioned 146 individuals and entities associated with the Prince Group.
On the other hand, the case has generated significant movements on the blockchain. Just 24 hours after the Department of Justice (DOJ) announcement, a wallet linked to the LuBian pool transferred 11,886 BTC (about $1.3 billion). This wallet had been dormant for three years. A week later, the same entity moved another 15,959 BTC ($1.83 billion) to new addresses. Analysts are debating whether these are defensive moves or strategic reallocations.
However, these movements of dormant BTC have added mystery to the case. LuBian was a major mining pool that collapsed in 2021 following a massive hack in 2020. Prosecutors allege that Chen used these pools to launder money. If the DOJ’s forfeitures are successful, they would represent one of the largest additions to the U.S. government’s Bitcoin holdings. The investigation into the alleged transnational Bitcoin fraud network continues globally.
