The US Treasury Department has imposed a second wave of sanctions on the Prince Group, a Cambodian conglomerate accused of running an industrialized, forced-labor network of crypto fraud.
On June 23, OFAC sanctioned nine individuals and 26 entities linked to the group, expanding October 2025's unprecedented action. That earlier US-UK joint operation designated the Prince Group a transnational criminal organization, sanctioned 146 parties, and resulted in the seizure of 127,271 bitcoins-worth roughly $15 billion at the time-the largest forfeiture in US history.
Founder Chen Zhi was indicted for wire fraud and money laundering conspiracy, arrested, and extradited to China in January 2026. Yet the network allegedly persisted.
The Prince Group's core scheme, known as pig butchering, built fake romantic or investment relationships to lure victims into fraudulent crypto platforms. Workers in Southeast Asian compounds were often trafficking victims forced to perpetrate the scams under physical abuse.
Americans lost at least $10 billion to such scams in 2024, a 66% increase from the prior year. The Prince Group, with holdings in real estate and banking, allegedly provided money-laundering channels for the proceeds.
The group has denied all allegations, but the sanctions signal continued US resolve. For investors, the seized Bitcoin supply looms; government auctions could influence market dynamics. Heightened compliance and anti-money-laundering rules are expected across crypto platforms.