In one of the most jaw-dropping cryptocurrency crackdowns to date, the U.S. Department of Justice has seized a staggering $15 billion worth of bitcoin in connection to a global scam that preyed on unsuspecting victims through a devious scheme known as “pig butchering.” The man allegedly behind the fraud, a Chinese-born figure named Chen Zhi, is now at the center of the largest crypto seizure in American history.
The news has sent shockwaves through the crypto world and beyond, as the DOJ unravels what it calls a sophisticated and deeply manipulative fraud operation based in Cambodia — one that could be just the tip of the iceberg.
What is “Pig Butchering” — and How Did It Lead to a $15 Billion Bitcoin Seizure?
The term “pig butchering” refers to a scam tactic that’s rapidly become one of the most lucrative and destructive fraud models in recent years. It’s a cruel and calculated con, typically targeting individuals online through fake romantic or investment relationships.
Scammers build trust slowly, “fattening up” their victims emotionally and financially, before ultimately convincing them to invest significant sums into fake crypto platforms. Once the money is deposited, it disappears — and so do the scammers.
In this case, the operation was anything but small-time. Prosecutors say Chen Zhi oversaw a sprawling network of fake investment websites and manipulated communication channels to pull off a con that would ensnare victims around the world and result in billions in stolen assets.
Who is Chen Zhi — and Where is He Now?
Chen Zhi, 38, is a Chinese-born national who also goes by the alias “Vincent.” According to the unsealed indictment filed in federal court in Brooklyn, Zhi was at the helm of this elaborate operation that spanned continents. He is charged with wire fraud conspiracy and money laundering conspiracy — and faces up to 40 years behind bars if convicted.
Despite the massive bust, Zhi is still on the run.
The DOJ has confirmed that Zhi remains at large. Authorities suspect he is still hiding overseas, possibly in Cambodia where the operation was allegedly headquartered. Efforts to locate and apprehend him are ongoing.
The Biggest Bitcoin Seizure in DOJ History
This isn’t just another crypto crime story. The $15 billion seizure represents the largest-ever forfeiture action by the Department of Justice.
To put that into perspective, the 2022 Bitfinex hack seizure was valued at around $3.6 billion — which at the time was record-breaking. This new case dwarfs that amount by a factor of more than four.
The bitcoin in question was discovered in various digital wallets linked to Zhi and his network. Authorities say the funds were traced back to victim deposits made on scam trading platforms, many of which looked convincingly legitimate but were nothing more than elaborate facades.
The complexity of the operation, combined with the scale of the haul, has stunned even veteran investigators in cybercrime enforcement.
A Wake-Up Call for Crypto Investors Worldwide
While the numbers in this case are shocking, experts warn that pig butchering scams are far more common than most people think. These scams often begin with a simple message on a dating app, social media platform, or even a WhatsApp wrong-number text.
Once contact is made, scammers lure victims into emotional conversations, then slowly introduce the idea of investing together — often showing fake returns, doctored screenshots, and professionally built trading websites.
Victims are persuaded to deposit increasing amounts of money until they’re completely wiped out.
This case, according to authorities, illustrates the devastating personal and financial consequences of such schemes — and the urgent need for public awareness and education around online financial scams.
Global Crime, Global Response
The DOJ emphasized that international cooperation was critical to tracking the digital assets, dismantling parts of the network, and moving toward prosecution. With many pig butchering operations being run from cybercrime compounds in Southeast Asia, international law enforcement agencies are now working closely to disrupt these criminal enterprises.
The seizure also highlights how financial crimes have evolved in the digital age — and how law enforcement is adapting. From blockchain analysis to undercover agents posing as victims, this operation required extensive coordination and deep technological expertise.
What Happens Next?
While the bitcoin has been seized, the case is far from over. The DOJ will now move forward with forfeiture proceedings, and efforts to locate and arrest Chen Zhi will intensify. Investigators also suspect there may be other high-level operatives involved in the same network — and more arrests could follow.
The DOJ is encouraging victims of pig butchering scams to come forward, as the information could help them map the full extent of the network.
If and when Zhi is caught, he will face trial in the U.S., where prosecutors say they will seek the maximum penalty available under federal law.
Final Thoughts
The $15 billion bitcoin seizure is a historic moment for crypto enforcement — and a chilling reminder of how sophisticated financial scams have become. It’s also a warning to every investor navigating the digital world: if it sounds too good to be true, it probably is.
For now, the DOJ has scored a massive victory. But the battle against global crypto fraud is far from over.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
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