SAN FRANCISCO (KGO) — The Division of Justice has seized a report $15 billion in Bitcoin from a cyber fraud operation based mostly in Cambodia that focused People. An investigator from San Jose may be very accustomed to this case. She visited one of many alleged scammer’s abroad compounds earlier this 12 months, and now, she’s sharing her movies with the I-Staff’s Dan Noyes.
The Division of Justice has indicted 38-year-old Chinese language nationwide, Chen Zhi, for wire fraud and cash laundering conspiracy, and labeled his conglomerate of corporations based mostly out of Cambodia known as the Prince Group as a “transnational legal group.”
The federal government seized 127,000 Bitcoin from Chen’s accounts, price $15 billion on the time – a lot of it acquired from unsuspecting American victims.
Cyber fraud investigator Erin West informed the I-Staff, “For those who can seize 15 billion of this, then how a lot has gone by way of that man’s pockets? How a lot has he stolen? If we had been in a position to take again 15 billion.”
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West may be very accustomed to Chen Zhi and his operations. The lawyer retired from Santa Clara County’s fraud unit and launched her nonprofit, Shamrock, to assist victims. West visited one among Chen’s compounds in Cambodia earlier this 12 months.
Erin West: “They’re crammed, these complete dormitories are stuffed with folks. You possibly can see their laundry, you possibly can see them inside, however there is no automobiles as a result of no person’s going anyplace.”
Dan Noyes: “They’re being held there.”
West: “They’re being held captive. That is modern-day slavery. These are folks which are being held towards their will and being pressured to scam 16 hours a day.”
The cyber scam compound is disguised as an residence constructing, even promoting leases.
Guard: “What, what would you like?”
Journalist: “I wished to ask somebody about renting a… renting an residence.”
West and her journalist buddies approached the guard.
Journalist: “So, this one is what enterprise?”
Guard: “No, no, no.”
Journalist: “What’s inside right here?”
Chen employed violence to maintain the employees in line, the indictment saying he stored images depicting a few of his strategies. The grievance additionally features a image of a rack with hundreds of cellphones.
“Sending out contact after contact,” West mentioned. “And as soon as there is a communication, as soon as someone desires to speak, then that will get forwarded to an everyday individual to proceed that communication.”
Then, the method known as “pig-butchering” begins in which the scammer grooms a sufferer over days, weeks or months. “A typical romance scam after which after that, we could have proven you all alongside that the individual you suppose you are in love with is a rich individual and finally will say, ‘Nicely, have you learnt why I am so rich? It is as a result of I make investments in cryptocurrency and I am going to educate you ways to try this.'”
Final 12 months, West additionally visited a cyber fraud compound that had been busted in the Philippines. On the scene, she mentioned, “It is greater than 35 buildings and was designed and constructed for the only real objective of scamming.”
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She toured the opulent boss’ quarters with invoice counters, the huge pool, the posh automobiles – a Maybach and armor-plated Vary Rover. And she or he noticed the torture room for the human-trafficked employees.
“They chain them up,” a information mentioned. “After chaining them up, they beat them up.”
Whereas the bust in Cambodia is an efficient step with that report $15 billion haul, West cautions victims right here about getting their hopes up for seeing their cash once more. “I feel we should be actually cautious about setting expectations in regards to the return of that cash to victims. It is a federal case. It’s going to undergo the authorized system. And I do not suppose it is clear proper now precisely who shall be getting that cash.”
The investigations transfer ahead. The indictment says Chen Zhi operated dozens of enterprise entities in greater than 30 international locations and that he paid bribes to overseas public officers.
Check out extra tales by the ABC7 News I-Team.
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