Financial scams have become more than man-on-the-street operations – they’ve become so complex that they’re drawing international attention. The United States and the United Kingdom jointly unveiled one of the most sweeping sanctions actions in recent memory against the Prince Group Transnational Organization (PGTO), a sprawling Cambodian conglomerate accused of using property empires to launder billions in crypto fraud proceeds. The historic enforcement action froze nearly $134 million in London real estate ties to the group and exposed how luxury property can double as a front for global financial crime.
The largest crypto seizure in history
On Oct. 14, the U.S. and the U.K. announced joint action against cybercriminal networks in Southeast Asia. The joint sanctions impact nearly 150 targets within the PGTO, a “transnational criminal empire” led by Chairman Chen Zhi of Cambodia according to a United States Treasury press release. The U.S. Department of Justice not only announced charges against Chen Zhi for wire fraud conspiracy and money laundering conspiracy – they also filed the largest forfeiture action ever, against approximately $15 billion in bitcoin.
PGTO is one of the largest conglomerates in Cambodia, with three operating arms in “real estate development, financial services, and consumer services” and with extensive business activity across Cambodia and more than 30 countries beyond, according to its website. In its statement, the U.S. Treasury alleges “the criminal revenues generated have been instrumental in supporting its ostensibly legitimate business ventures.” The criminal revenues allegedly come from individuals forced to engage in cryptocurrency investment fraud schemes known as “pig-butchering scams” conducted over long periods of time that have stolen billions of dollars from victims in the United States and around the world.
Luxury property holdings frozen
The U.K., in accordance with the announced joint sanctions, froze 19 London properties worth more than $134 million with connections to the PGTO with the goal of “locking Chen and his network out of the U.K.’s financial system” and to disrupt money laundering operations. Among the 19 frozen properties are a $16 million (£12 million) mansion on Avenue Road in North London, a $134 million office building on Fenchurch Street in the City of London, and seventeen flats in South London on New Oxford Street and in Nine Elms.
“The masterminds behind these horrific scam centres are ruining the lives of vulnerable people and buying up London homes to store their money,” said British Foreign Secretary Yvette Cooper. “Together with our US allies, we are taking decisive action to combat the growing transnational threat posed by this network – upholding human rights, protecting British nationals and keeping dirty money off our streets.”
The U.S. Department of Justice’s statement included similar wording for the conglomerate. “Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” said Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche. “By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit. We are grateful for the hard work of Director Patel and the men and women of the FBI.”
