“The Strategic Bitcoin Reserve will be capitalized with bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings.”
The legal filing, submitted on Oct. 14, outlines a far-reaching criminal enterprise that blended crypto investment fraud, human trafficking, and political corruption.
The entity operated a network of scam compounds that doubled as detention sites for trafficked laborers. Thousands of migrants, lured by fake job ads, were reportedly forced to run fraudulent crypto-investment schemes under threat of violence.
Under Chen’s direction, at least ten major compounds were established, including facilities linked to the Jinbei Hotel and Casino, the Golden Fortune Science and Technology Park, and Mango Park.
The US government alleges that Chen and senior executives leveraged bribes and political influence to evade prosecution, even obtaining advance warnings of planned law enforcement raids.
By exploiting these connections, the group maintained control of billions in illicit crypto flows and entrenched its position within Cambodia’s broader shadow economy.
Apart from moving to confiscate the illegal funds, the US authorities, acting in tandem with the United Kingdom’s Foreign, Commonwealth, and Development Office (FCDO), also imposed sanctions on Zhen and his related entities.
US officials said Huione’s networks were instrumental in concealing billions in stolen funds from investors worldwide.
