Core Viewpoint - The case against Chen Zhi, founder of Prince Group, highlights the evolution of cross-border fraud into a "digital war," with significant implications for victims, particularly Chinese citizens, and the global anti-money laundering landscape [1][6]. Group 1: Case Overview - On October 14, 2025, the U.S. Department of Justice charged Chen Zhi with wire fraud and money laundering, potentially facing a maximum sentence of 40 years [1]. - The U.S. and U.K. simultaneously imposed sanctions on Prince Group, freezing 127,271 bitcoins valued at approximately $15 billion, marking the largest asset seizure in U.S. judicial history [1][5]. - The case reveals the extent of Southeast Asia's "pig-butchering" scams, with a significant number of victims being Chinese citizens [1][4]. Group 2: Prince Group Operations - Prince Group operates at least 10 scam compounds in Cambodia, where hundreds of trafficked workers, primarily from China and other Asian countries, are held [3][4]. - Chen Zhi maintained meticulous records of scam profits and used automated systems to conduct harassment calls, indicating a highly organized operation [4]. Group 3: Financial Impact - According to the FBI's 2024 Internet Crime Report, such crypto investment scams have caused global losses exceeding $5.8 billion, with over 70% of victims being Chinese [4]. - Chinese victims of scams related to Cambodia numbered over 100,000 in 2024, with average losses ranging from 200,000 to 500,000 RMB [4]. Group 4: Asset Recovery and Legal Framework - The U.S. government is currently holding the seized bitcoins, which have appreciated significantly, complicating the recovery process for victims [5][6]. - The legal framework allows for potential asset sharing between the U.S. and China, with China expected to claim 70-80% of the recovered assets after victim compensation procedures are completed [6][7]. Group 5: Broader Implications - The case is seen as a critical moment for international cooperation in combating financial crimes, particularly in the context of cryptocurrency's dual nature as both an innovative tool and a vehicle for crime [8]. - The similarities between Chen Zhi's case and the Qian Zhimin case underscore the need for a global anti-money laundering mechanism to address the ongoing threat of scams like "pig-butchering" [8].