Did the US government hack a scam network for $15B in bitcoin?

The US has issued 146 sanctions against the Cambodian corporate conglomerate “Prince Group,” and has requested the forfeiture of $15 billion worth of bitcoin (BTC) linked to its alleged “secret” criminal network.

The Treasury announced that enforcement action, developed in conjunction with the UK, is aimed at hindering scam organizations that target victims across the globe.

The 146 targets, including the alleged leader of the Prince Group enterprise, Chen Zhi, and countless shell companies and business associates, were sanctioned by the Treasury’s Office of Foreign Asset Control.

The US also asked the courts to release 127,271 BTC that is currently under the government’s custody. It claims this “staggering sum” made up Chen Zhi’s laundered proceeds.

Interestingly, crypto sleuth ZachXBT notes that the wallet addresses listed in the forfeiture request were flagged as having at-risk private keys in the “Milk Sad” report of crypto wallet vulnerabilities.

He goes as far as to suggest that the US government, or someone on behalf of the US government, was able to hack the crypto wallets and take custody of the BTC.

Prince Group allegedly bribed its way out of raids

Chen Zhi allegedly operated his crypto scam enterprise by building and operating at least 10 forced labour camps in Cambodia.

These compounds hold trafficked victims hostage and force them to scam victims out of crypto online. They are prevalent in Southeast Asia in countries such as Cambodia and Myanmar.

To keep them safe from raids, Prince Group members allegedly bribed politicians with million-dollar yachts and received tip-offs from enforcement authorities.

In one instance, an official from the Chinese Ministry of Public Security allegedly offered to help get Prince Group associates “off the hook.”