cryptoscam

📅 January 7 | Asia
For years, crypto scams known as “pig-butchering” have operated in the shadows, fueled by promises of love, impossible investments, and fake platforms that drained billions of dollars from victims worldwide. Now, one of the most powerful names allegedly linked to this global network has been arrested.

📖The Cambodian Ministry of Information confirmed that Chen Zhi, chairman and founder of the Prince Group, was arrested this week and subsequently deported to China at Beijing's request, following a joint investigation between the two countries. Cambodian authorities did not clarify whether Chen Zhi will face formal charges in China, but his transfer marks a key turning point in a case that has been shaking governments and regulators for months.
According to US prosecutors, Chen Zhi allegedly ran a vast network of forced labor scam centers in Cambodia, from where cryptocurrency investment and romance frauds were executed. These operations, known as “pig-butchering scams”, have allegedly generated billions of dollars by exploiting international victims through messaging apps and fake trading platforms.
In October, the U.S. Department of Justice announced its largest forfeiture action ever, seeking the seizure of approximately $15 billion in bitcoin, in addition to hundreds of millions in real estate and other assets allegedly linked to the criminal network. The scale of the amount made the case one of the largest in the history of cryptocurrency-related financial crime.
Cambodian authorities noted that Chen Zhi's citizenship was revoked at the end of 2025, an unusual move that suggests a significant political rift between the businessman and the state. However, the case has been further complicated by a narrative clash between the United States and China regarding the origin and custody of some of the seized bitcoins.

Topic Opinion:
The alleged $15 billion scam not only highlights the industrial scale these frauds have reached, but also the inability of the international system to deliver clear justice when money is digital and power is geopolitical.
💬 Who will ultimately control the $15 billion in BTC?

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#bitcoin #Cryptoscam #CryptoFraud #BTC #CryptoNews $BTC

In a significant victory for consumer protection, the Maine Bureau of Consumer Credit Protection (BCCP) has announced a consent agreement with Bitcoin Depot, one of the largest operators of cryptocurrency ATMs. Under the agreement, the company will pay $1.9 million to residents of Maine who lost money in scams involving its crypto kiosks.

Compensation for Losses Caused by Scammers
The settlement funds will be distributed exclusively to Maine residents who lost money between 2022 and 2025 due to scams linked to Bitcoin Depot kiosks. Most cases involved users depositing cash into a Bitcoin Depot ATM, converting it to cryptocurrency, and sending it to an “unhosted wallet” controlled by a fraudster.
These wallets are not managed by any bank, exchange, or financial service provider – they are entirely user-controlled, making them ideal for anonymous criminal activity.

Agreement Follows Two-Year Investigation
The deal comes after a two-year investigation conducted by BCCP and the Maine Attorney General’s office. As part of the settlement, Bitcoin Depot has also been granted a money transmitter license, allowing it to legally operate in the state – although Maine does not currently appear among the company’s active service locations.

Only Specific Victims Are Eligible
To qualify for compensation, individuals must:
🔹 Have been scammed by a third party using a Bitcoin Depot kiosk in Maine

🔹 Have been residents of Maine between 2022 and 2025

🔹 Have used the kiosk to convert cash to cryptocurrency

🔹 Have sent the cryptocurrency to an unhosted wallet controlled by the scammer
The deadline to file claims is April 1, 2026. Valid claims are expected to be processed and refunded during May.
The Bureau noted that the exact refund amounts are not yet known, as it remains unclear how many residents were affected and how much each individual lost.

Governor Praises the Outcome
Governor Janet Mills praised BCCP for securing the settlement, stating that the agreement will “put money back into the pockets of Maine people who were defrauded by cruel and sophisticated third-party scammers.”
She also urged residents to educate their loved ones about fraud tactics and emphasized the importance of prevention.
In response to the rising number of financial scams, Maine has introduced several laws in recent years, including the Money Transmission Modernization Act and “An Act to Regulate Virtual Currency Kiosks”, which limits daily transfers, caps fees and exchange rates, and strengthens consumer redress.

New Rules for Digital Wallets
A crucial part of the legislation is the unhosted wallet provision, which requires crypto ATM operators to implement technologies that ensure the customer is the rightful owner of the wallet. This is aimed at stopping scammers from controlling victims’ wallets.
BCCP Superintendent Linda Conti hailed the new laws as the legal foundation that made the consent agreement possible.

#BTC , #ATM , #bitcoin , #CryptoNews , #Cryptoscam

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