Seems organised crime is taking advantage of less-policed (or lawless) regions in Cambodia and Burma.
The spectre of a similar scam has resulted in lower Chinese tourism to Thailand. Basically Chinese (among other nationalities) tourists were led from the airport by fake immigration staff, put into cars and driven to Burma and forced to work 18 hour days in scam call centers.
I got a lot less snarky in my responses to scam text messages when I learned about the forced labor aspect. I just block the sender and go on, versus trying to bait them and waste their time.
Spent significant time in Vietnam & Cambodia & Thailand. Cambodia is a sad country full of desperate people. "less-policed" is the entire country. ~50 years since https://en.wikipedia.org/wiki/Cambodian_genocide.
Vietnam was by far my favorite of the three and the contrast between the three countries is stark.
Content:
"Once you’ve been to Cambodia, you’ll never stop wanting to beat Henry Kissinger to death with your bare hands. You will never again be able to open a newspaper and read about that treacherous, prevaricating, murderous scumbag sitting down for a nice chat with Charlie Rose or attending some black-tie affair for a new glossy magazine without choking. Witness what Henry did in Cambodia – the fruits of his genius for statesmanship – and you will never understand why he’s not sitting in the dock at The Hague next to Milošević."
I had to read up, and...my goodness.
Apparently the US bombed a neutral Cambodia secretly to incite Vietnam's neighboring countries and put pressure on them, killing 30k to 150k civilians.
This caused unrest, and gave way to Khmer Rouge to sieze power, using "defense against the US" as propoganda.
The Cambodian civil war only ended in 1991. To call a country full of any type of people is the definition of racism. YC news moderation standards is quite something these days.
Wow. $15 billion is an astronomical, nearly unfathomable amount of money in Cambodia. This must have been a huge operation. It's almost 1/3 of the country's entire GDP!
Well done DOJ. Hopefully the victims get their money back.
They operate in places like Cambodia but it's the Chinese
There's areas in Laos and Cambodia they control where it literally operates under a different set of laws. One of the areas, I think in Laos, Americans aren't even allowed to enter
The facilities aren't even remotely hidden so it's fair to blame Cambodia for allowing it. They have towns built up around them with restaurants and shops and normal economic functions to support the people running these slave towers. A good chunk of the money is flowing back into China, but there's definitely a good bit that seeps out into the Cambodian economy. Hence why Cambodia's government is more than happy to let it operate.
In the case of Myanmar, I think their biggest problem is the country has been in a war for decades with loads of various factions and it's too chaotic for any government to attempt to get anything under control.
Yes a huge chunk of the blame falls on Cambodia, Laos, Myanmar, etc
And bordering countries like Thailand are running into issues where people are getting trafficked through Thailand to these other countries. So it's actually ruining the reputation of Thailand and lots of Chinese people are wary of traveling to Thailand because of it
To provide a bit more context what happens is Chinese people will give fake job offers to their fellow Chinese and then basically kidnap them when they arrive to Thailand and take them to another country to work in a scam center
Compared to Cambodia, sure, but it's an international crime gang, with this particular one being just one branch. I wonder if this was their biggest hoard or if they had more?
Really poor financial management to have all that money concentrated that much though. It either means they dropped the ball bigly, or this is spare change for them... although Bitcoin's market cap is $2.24 trillion at the moment, $15 billion is a significant chunk of that.
That doesn't appear to be how they seized the funds though, the criminal hasn't been caught so they must have hacked his devices to gain access to the private keys. No $5 wrench involved.
Cambodia is just a proxy, a land where the Chinese gangs act with impunity. Earned with slave work, money is laundered in casinos and no Cambodian is seeing a cent of it.
Might as well say "nearly unfathomable amount of money in Congo" because that's just how disconnected the money is to the country.
No, some Cambodians are seeing a very sizeable benefit, probably the standard 20% that the leading family cream off of any major investment in the country.
And BTW it is not just the Chinese, there are innumerable other operators, including a whole bunch of smaller 'startups'.
They operate because Cambodia openly accepts it, and takes a cut, not because they are somehow so clever as to disguise the real business being conducted in closed-up apartment blocks.
Khesrau Behroz did an amazing podcast about those operations (in German though) [0]. Basically when there was a crack down on providers of illegal sports betting in China, they went abroad and diversified. The betting operation is used to launder the money from those scam operations and betting is still immensely popular in China and done via VPN. Those East Asian sport betting providers are sponsors of many Champions League clubs so their (often changing) names get know the gamblers in China watching the games.
So yea, there are massive amounts of money involved.
There's an interesting "Search Engine" podcast (in English)[0]. Apparently a lot of the people doing the actual scamming are human trafficked and being held in compounds against their will.
From what I understand, a number of them are Chinese nationals. I suspect that taking Chinese slaves might not be a great idea. China tends to carry a big stick; especially in that region.
Wouldn't surprise me, if the DOJ had some "under-the-table" help from Chinese sources, but not in any way that anyone can prove.
Probably not, but we should probably not compare a total (potentially across years) with something that is measured yearly like GDP, kind of misleading.
I think they mean the bulk of the sum came from the rise of BTC, moreso than the scam. Like a purse snatcher steals a total of $200 and buys lottery tickets making their proceeds worth $40k.
That’s not necessarily true, though may be for Cambodia. GDP can include black market activities but countries differ in whether they include specific ones and how.
Right, it's not black market if you eventually pay some taxes on it somewhere. Dare we call it washed money, and for our American friends in the audience, laundered money.
Does it even count in there though? Fraud isn't a normal transaction. It's the same as theft, which is simply a transfer from one person to another. An act of fraud or theft doesn't represent creation of value the way profit from legitimate transactions do for "black market" goods/services (even if the goods/services are illegal).
That’s a good point, transferring of assets isn’t counted - although if it’s imports perhaps that’s different. The cost of scamming may be counted, paying people to perform scams certainly could be depending on the type of calculation you do.
I know it’s a bit of a get out clause but it’s at least not obvious to me that this wouldn’t contribute, certainly the illegal nature is not a blocker for being counted in GDP.
If we're just talking about the formula of GDP = gov spend + investment + consumption + net exports, then scamming foreigners would be captured under the "net exports" category. Similar to remittances, which are quite significant components of GDP for some countries.
Admittedly it's doubtful whether this kind of activity would be captured by official statistics.
That money would have flowed somewhere, also I'm not sure OP was talking about impacting the GDP just quantizing it. For Cambodia, it's an extraordinary amount of money. Actually for anywhere it's a ridiculous amount of money.
> The new promise of crypto is helping organized crime or sanctioned individuals/countries with payments, and it's delivering!
It's not even new - Bitcoin right from the start was explicitly created to replace a centralized system used by criminals to evade currency controls. Bitcoin's creator(s?) saw that the various governments were eventually able to shut that down and set up Bitcoin as a decentralized system to avoid that problem.
It's not a flaw in crypto that criminals flock to it - it is built into the very design. This story shows that it is not perfect but to criminals it is the best that they have.
Instead of these two take this simple rule: not your key not your money.
There's no thing that the feds can't have because they have an infinite amount of sanctions violence and tools at their disposal to make anyone do what they want, one way or another.
Criminals can’t count on #1 if they hold the keys on them when they get arrested.
>were previously stored in unhosted cryptocurrency wallets whose private keys the defendant had in his possession. Those funds (the Defendant Cryptocurrency) are presently in the custody of the U.S. government.
not really? presumably many people transfer via platforms like Coinbase that use a shared wallet system. You can't just "send the money back where it came from" as those wallets might not actually be controlled by the funds owner.
Even if the victims get their money back it would only account for 25% or so because the price of BTC has moved so far since they lost it. (I think many victims will successfully petition for their money back)
Because they bought Bitcoin and gave it to the scammer, and that Bitcoin is even worth more now, so that’s the ‘most fair’ recompense.
After all, if someone stole $1k of gold from someone a decade ago, is giving them (now deflated) $1k USD fair, or is giving them the same physical amount (now worth) $3k in gold fairer? Even if they bought the gold because the scammer asked them too.
The ‘fair enough’ treatment would be to give them the dollar equivalent at the time they gave the bitcoin to the scammer, and the rest goes… to the gov’t? As ‘payment’ for recovering it all and making the payment happen? Or to penalize the scammers? But actually the victims lost a lot of monetary value due to inflation, and lost gains from bitcoin price increasing.
The ‘meh, won’t get anyone run out of town with pitchforks’ is the gov’t seizes the bitcoin, punishes the offenders (how?), and somehow gives warm fuzzies to the victims without actually giving them anything to make their financial pain any better. Aka business as usual. Bonus points if you make them give more money to another party to do it (aka the ‘class action shuffle’ that has gotten popular in the last few decades).
Probably what will happen again and again. If they can do this, why stop at Cambodia? Watch as DOJ begins seizing more and more Bitcoin from everywhere.
Long overdue. At some point, these scam operations are so large that they have to be operating with tacit approval of their host countries, who have been given no incentive to stop the virtual cold war against the personal finances of foreign citizenry that is bringing in millions of dollars into their economy.
> The company is linked to Cambodia's ruling Hun family, which includes the current prime minister, Hun Manet.[4] His cousin Hun To is a major shareholder and director of Huione Pay
> Cambodia's specifically 30-50% of the economy can be directly attributed to scamming plus casinos
Are you saying that 30-50% of Cambodia's economy can be directly attributed to scamming and casinos? I find that shocking and hard to believe. Do you have a source for that statement?
My first experience stepping off the plane in Cambodia was being scammed by the official issuing visas. It was $20, I gave him $50, and he didn't want to give any change back. Scams were the defining part of the tourist experience there.
First off, the amount seized was not necessarily made in a year.
Second, most of the money would not make it to the Cambodian economy. It is likely laundered abroad. The whole operation is likely multinational, with only the workforce located in Cambodia.
The UK may not have been enabling this guy in particular, but he's not exactly the only one who has been stashing ill-gotten gains in London real estate. Apparently crooks still think it's a great deal despite some of them getting it seized once in a while.
Cambodia is a small country with no natural resources of any kind. Even to grow rice you need diesel for tractors and fertilizers that are produced from natural gas using energy (which Cambodia lacks).
There's very few opportunities for a small country without resources.
This makes me think of the Barbary Wars where piracy out of the Barbary states was a huge issue. There's also the connection with the slave trade then and the human trafficking for the scam centers now.
> the virtual cold war against the personal finances of foreign citizenry
Comparing a scam to war is inaccurate. The Cold War was a war running cold with the potential to go hot. Cambodia and America are not going to war over this.
> The Cold War was a war running cold with the potential to go hot
I'm not sure I buy that definition. I think most understand a Cold War to be simply a "war" done without weapons but by other means — via economic means, propaganda, etc.
Interestingly enough, China is thought to have leaned on the scales in Myanmar’s civil conflict due to pig-butchering there. (Not only were they scamming Chinese, they were also human trafficking them to operate the scams.)
China only began executing those pig-butcherers when the EAO that was providing protection to Chinese pig-butchering gangs in that region of Myanmar (Kachin Independence Army) re-flipped towards India recently [0] and had begun to ignore China [1] and rerouting rare earths and other goods to India [2]
Meanwhile, China never cracked down against similar scams in Cambodia. Most notably, Prince Group remains unsanctioned in China and it's leadership are Mainland Chinese in origin.
While pig butchering (along with opium and human trafficking and other organized crime activities) are a major reason behind Chinese involvement in Myanmar, ignoring the very real proxy war going on between Chinese and Indian interests in Myanmar fails to contextualize some of the decisions that both countries make within Myanmar.
This also explains why you don't see a similar crackdown in Cambodia, which is solidly within the Chinese sphere at this point.
> the EAO that was providing protection to Chinese pig-butchering gangs in that region of Myanmar (Kachin Independence Army)
Kachin is not a relevant location of scam centers. You can find articles that claim otherwise, e.g. https://www.ctol.digital/news/inside-worlds-largest-scam-emp... but from the fact that they mention the Thai border and the city of Myawaddy, which is in Kayin/Karen State, it's clear that they're just confusing Kachin and Kayin.
The Kachin Independence Army seems to finance itself through mining instead.
While it's true that some scammers were recently sentenced to death in China https://www.bbc.com/news/articles/c78nrx309kzo and this only happened after the Kachin Independence Army disrupted the rare-earth trade with China, that's just a temporal coincidence. The scammers were captured in 2023 in Laukkai in northern Shan State near the Chinese border by the MNDAA (an anti-junta armed group dominated by ethnic Chinese) as part of Operation 1027. China is rumored to have assisted the operation in order to crack down on the scam centers in junta-controlled territory. https://en.wikipedia.org/wiki/Operation_1027#Cyber-scamming_... The Kachin Independence Army also participated in Operation 1027, but in Kachin, not Shan.
The MNDAA is a close ally of the KIA as both are members of the Northern Alliance, and all the Northern Alliance members saw their relations with China tank after Chinese brokered talks with the Tatmadaw failed [0] last December.
As a result of that failure, all the Northern Alliance members began trying to pivot to other states or in the case of the MNDAA faced the brunt of the Chinese crackdown.
All of that postdates the MNDAA crackdown on scam centers, during which relations with China were excellent. It seems like after Operation 1027, the junta got the message and started handing over their own allies in the scam industry https://www.irrawaddy.com/news/burma/myanmar-junta-transfers... at which point China didn't have much reason to continue supporting anti-junta forces in their offensive and preferred freezing the frontline with a ceasefire instead.
Maybe the reduction of Chinese support encouraged the Kachin Independence Army to seek cooperation with India, but you seemed to be claiming that causality was in the opposite direction (while also misidentifying who was running the scam centers), which I think is clearly contradicted by the timeline of events.
That's interesting - I had seen some news articles reporting that some Chinese pig butchering scammers were encouraging others to target foreigners only, and exclude the mainland Chinese. Like this one: https://globalinitiative.net/analysis/chinas-acquiescence-to...
It's reminiscent of stories about Russian malware doing nothing on machines with Cyrillic keyboard layouts.
Yep, but notice how that article is about Kokang in Myanmar as well.
Cambodia continues to have scam centers targeting Putonghua speakers (including PRC nationals), but there hasn't been a similar crackdown on such activities due to Chinese pressure.
The crackdown in Kokang happened after China flipped to supporting the Tatmadaw against the Northern Alliance [0] and India began peeling historically India-aligned members of the alliance like the KIA and the Arakan Army back into Indian orbit [1].
P.S. Circa 2 years ago, a large portion of Chinese in SF Chinatown became Kokang and Cambodian Chinese. Bamar, Kuki-Zo, and Kachin Myanmarese primarily reside in Daly City, Ingleside/Outer Mission, and Oakland/East Bay.
SF has a lot of Asian and Latiné subcultures and communities - it's kind of insane how underdocumented it is under the guise of "Asian" and "Latino"
China does not have a way to deal with crime in Cambodia. It does not have anti-terrorism law to operate in other countries, also it does not want to upset Cambodia or Myanmar government when not necessary. These Chinese operates in Cambodia are mostly on the wanted list anyway, they don't plan to go back to China. In fact, a person leaving China to Cambodia and Myanmar will be checked and make sure their trip is innocent.
Personally I hate these scammers, they have ruined so many people's lives. It seems that it will never go away. Too much money involved. I wish we can launch drone attacks on these places.
> we are at war with many countries all the time, most of it is cold
Like whom? We (and let's be honest, every other great power) are at war with many countries all of the time, and while they may be cold for long stretches, they absolutely (a) go hot from time to time and (b) are constantly threatening to go hot.
To me "war" is a state of "no rules" hurting. IE nuclear, biological, any weapon goes. Anything less is an exercise in restraint - even if still quite terrible in it's own right.
Which means there are lots of "exercises" of varying lethality, risk profiles, spheres of influence, etc. And yes many countries are jockeying against other countries in varying ways.
Large scale scams against other countries could be seen as an unintended (not a planned government action) exercise that is condoned by the government.
I don't understand how he was savvy and organized enough to operate such a massive operation and yet didn't manage to secure his $15 billion crypto wallet... Amazing.
Btw this is low-key the reason why Cambodia almost went to war with Thailand recently. In particular what's interesting is that how quickly Cambodia repurposed scam center employees as internet trolls. They're onto a really powerful golden goose here that not only brings in 15B usd but also empowers the current dictatorship. But also it's a pit of doom that is destined to erupt anytime now.
It's 127,271 Bitcoins. Interesting choice not to mention the number of Bitcoins but use its current market value in USD. I feel like this says something about Bitcoin but not sure what exactly.
Edit: Wow, people really don't want to know how many Bitcoins were seized :)
So if somebody sized a stock portfolio should they mention the number of shares? The market value is in most cases more interesting than the number of coins.
If it's a single stock portfolio yeah. If it's like 1000 different stocks then stick that information into an appendix and only use the current market value in the write-up.
It's like confiscating a Ferrari and saying you took $5 million of car parts from a drug dealer. Like instead say you confiscate 2 Ferraris with a total market value of $5 Million.
What it means, is that the average person doesn't care about Bitcoin, so if you want the article to apply it the average person, you need to denominate the value in something else.
If someone stole 22 WobiBobbyBones I wouldn't care. If a WobiBobbyBone was worth a billion dollars, then I'd think that's news.
While the USD value is important, this puts the number in perspective, since only 21M BTC can ever exist (and a good number of them are out of circulation for various reasons).
It says Bitcoin is not a standard denomination. Sort of like if you are in France, and Disney bought Discovery, you would want to know the buying price in euros, not US dollars.
This is regular reporting using end-consumer market rates to inflate numbers.
Just as you could not sell 127,271 bitcoins all at once at market value, you could not just sell cocaine worth $1.4 billion but still confiscated drugs, even in large quantities, are reported with end consumer market rates. Nowadays, if a report mentions that is talking about "street value", that is already a big plus in my book.
This is why crypto could never be considered a currency, even the earliest news about BTC (value, theft, pizza purchases, etc) was always reported in USD values.
The point of bitcoin was that it can't be taken off you by the state. So either this was severe user error, to the tune of why aren't the keys somewhere secure when there's a billion dollars behind them, or the nominal reason for bitcoin existing is nonsense.
We thinking user error or crypto is nonsense? On the forum I expect the former.
Unless you are suggesting that the encryption algorithms underlying Bitcoin have been broken (which would be absolutely huge news with all sorts of far reaching consequences), then it's clearly the former.
I'm curious how the Bitcoin was actually seized, given that the indictment says the perp is still at large and held the Bitcoin in self custodied wallets.
I would love to see a new take on "James Bond" (or similar franchise? new franchise?) — one that is realistic and instead sees our spy move through these modern domains of illegal money instead of battling the clichéd Cold War villains with their Persian cats.
I'm not sure if one can merely walk away from a criminal enterprise of that size. As soon as you stop paying certain people you end up in a cage, and unless the stream of money is constant there is no reason to just not reneg on all prior agreements and go in a cage for stuff you already paid authorities off for.
So the whole crypto anonymity thing isn’t actually real? As it turns out, tracing people is still easier than tracing money? Decentralized economies are run by criminal enterprises?! We aren’t safe!?!
Wonder how this whole concept overlays onto LLMs, with a lot more money on the line and a lot less regulation.
You're probably joking, but even if crypto was totally anonymous, running a massive criminal human trafficking empire in the real world is very non-anonymous.
Good old police work still works. Because people need to talk to each other to do stuff. The only time anonymity helps is if you can pull it all off solo, and mix the funds enough to not be traced as well as cover tracks well enough.
Crypto anonymity is still possible if you don't plan to spend your ill-gotten millions or billions particularly quickly. But, of course, you don't get to having a massive active criminal empire that way.
These scams have enormous scale. The Economist has a fascinating podcast about it. The full series requires a subscription, but it is worth at least listening to the first 3 free episodes. https://www.economist.com/audio/podcasts/scam-inc
Chances are they still have a lot of the money scammed, just not those particular 15B.
In a way it's like with an overfunded startup: when at some point in time the music stops because even the last would-be investor realized that the business will never be profitable, the company collapses. But all those paychecks received for playing with Other People's Money don't magically return.
They have shareholders who bought the shares for more than the company annual revenue and expect infinite potential of profits to justify the price they paid
After having read the thread it's not clear to me where the "3 years" comes from ?
EDIT and were the keys cracked, or were the passphrases obtained ? It's mentioned elsewhere that he had them written down. Which would be a much easier "hack"
Sounds like good news but the press release doesn't detail how the FBI managed to trace, positively identify and then seize such a huge pile of crypto ($15B) from a suspect they say took extensive steps to launder and hide the source and ownership of the crypto. I'm curious because this guy is clearly very experienced, highly sophisticated and located in a country where the government and law enforcement are obviously tacitly protecting him.
So did the U.S. hack this guy? Anyone who manages to build such a massive multi-national corporation with myriad illicit businesses but also dozens of legitimate businesses with thousands of employees - including a large bank with over 100,000 customers - and then operate it all for over a decade, doesn't strike me as someone who's trivially careless. I mean he managed to successfully protect that much money for a long time from his own criminal co-conspirators (who would certainly include hackers with insider knowledge of his operations), criminal competitors and all the people he was bribing like senior Cambodian politicians, law enforcement and intelligence agencies.
This just strikes me as either a very lucky break or a perhaps a sign that the FBI is adopting a new playbook to go after shielded international operations like this. Like maybe involving U.S. and 'Five Eyes' intelligence assets.
"but the press release doesn't detail how the FBI managed to trace, positively identify and then seize such a huge pile of crypto ($15B) from a suspect they say took extensive steps"
Am I slow??? or what under circumstance that you expect FBI to told press how their operate????
I am also curious how the US government obtained possession of the bitcoin if the defendant is still at large. Doesn’t that defeat the whole point of bitcoin?
According to Ars Technica: "Adding further mystery, it’s unknown how federal officials managed to obtain the cryptographic keys required to seize the funds from Zhi."
My assumption is that at this point they just have orders from a judge allowing them to do it and they will find the means later.
Allowing them to do what? The feds are saying they already have the keys, so either they are lying, or they already had the means to get the keys. Which would be the juicy part of the story.
There exist a number of possibilities, all of which are equally likely
1. they are lying. The most obvious one. It's legal and is expected that law enforcement lie in the United States.
2. defendant was so dumb he had the funds in a crypto exchange account
3. Law enforcement has no idea what keys or crypto is. Also likely, law enforcement in the US is not required to be competent.
4. defendant was so dumb he landed on a flight in the US. This would be exceptionally stupid
5. The US military or the intelligence community either coerced the keys out of him or just beat the keys out of him. There are no jurisdictional issues with this approach. From what I understand this guy isn't very popular in any country, so few countries would care. Even fewer would want to publicly discuss how their sovereignty was violated
6. A random member of the criminal organization had access to most but not all of the keys. He showed up at a US embassy and said "well I did lots of bad stuff. I'd like to disappear now & not at a location named Guantanmo! How about we cut a deal"
My personal bet is on #3. It's effectively impossible for anyone to prove they don't have the keys. The only person who could do that would the defendant, who has no interest in doing so.
Yes, and the other big questions are how they even know about the existence of the bitcoin and then how they were able to demonstrate sufficient probable cause to a judge that A) the bitcoin belongs to the suspect, and B) this bitcoin is the direct proceeds of the charged crimes. Given the extremely unusual circumstances around this seizure, its unprecedented size and the complete lack of details - I suspect something new and interesting has happened here.
Unfortunately, we may never find out unless they manage to arrest the suspect, which seems unlikely. The more interesting scenario might be if the Prince Group files suit challenging the seizure. In that case, the government would not only have to produce evidence proving A and B above, but also that the evidence wasn't obtained illegally (like from secret NSA wiretaps on domestic Cambodian telecoms or targeted covert hacking). Given the circumstances, it's hard to imagine the FBI being able to offer plausible 'parallel construction' to support the legality of the evidence.
Finding a judge who does not really understand what Bitcoin is won't be too hard. All your "evidence wasn't obtained illegally" and so on are questions impossiblec to ask without a reasonable amount of knowledge. Requirements of a judge order aren't really much of a bar to jump, hardly more than a four eyes formality.
Quite possible they hacked the device they were stored on. I can't find confirmation that Chen has actually been arrested, as opposed to being charged in absentia.
> Those funds (the Defendant Cryptocurrency) are presently in the custody of the U.S. government.
> The defendant and his co-conspirators subsequently used some of the criminal proceeds for luxury travel and entertainment and to make extravagant purchases such as watches, yachts, private jets, vacation homes, high-end collectables, and rare artwork, including a Picasso painting purchased through an auction house in New York City.
My guess some of defendants were in New York or around the US. You can be a criminal master mind and also be a complete f*king idiot.
In my experience, folks who dabble in crypto and even seasoned users always underestimate how hard and tricky of a problem proper self-custody actually is.
And when they do think about it, it's always too late.
And by the way, multi-sig is not the only thing you want to be thinking about.
Cold walletting is another that most people miss.
Also, avoiding concentrating a large number of coins on a small number of addresses (not that I know this was done in the cast of this scam) is another thing most people miss when in fact this was from day one listed as bad practice by IIRC Satoshi himself.
And finally, to mention the standard counter-argument to self-custody: the $5 pipe wrench attack only works if the attackers know the coins exist.
For those interested in plumbing the depth of the problem, the glacier protocol is a good place to start:
Bitcoin market cap is $2.2T, so $15B of that is 0.7% of all bitcoins. They aren't selling them on open market, but in an auction (or a couple of auctions). It may not have an immediate influence on the bitcoin price, unless the buyer sells them right away. When someone sells an amount that big, it's done over a long period of time, to not crash the market (you'd probably get significantly less money if you sold it fast).
> Once they did, however, the marshals fell back on standard procedure, preparing to handle the Bitcoin the same way they would a coke smuggler’s speedboat: by auctioning it off. That posed challenges because of the sheer size of the seizure—about 175,000 Bitcoins, or 2% of all the Bitcoin in circulation at the time. According to a prosecutor familiar with the case, the marshals opted for a staggered series of auctions to avoid crashing Bitcoin’s price. In four auctions between June 2014 and November 2015, the marshals sold the Silk Road Bitcoins for an average price of $379. (https://fortune.com/crypto/2018/02/21/government-forfeiture-...)
There were also some bitcoins seized from a hacker that stole them from Silk Road in 2013, and when they seized it in 2020 it was worth $1B, now it's worth $6.5B. Nice profit for the government. https://fortune.com/crypto/2025/01/09/federal-government-all...
Since in pig butchering scams the victims often do not go to the police or tell anyone due to feelings of shame, we can assume quite a big pot of that money will go into the US federal crypto reserve.
> The practice is called “pig butchering” because scammers deliberately build up trust and emotionally manipulate victims over an extended period—much like fattening up a pig—before ultimately stealing as much money as possible in a final act of financial “slaughter”
And it's a bad expression, because it's the scammers own smug term of contempt, and makes victims less likely to come forward/warn each other thanks to the shame.
The ruling family in Cambodia is a big part of it, via their ownership in HuiOne (now renamed), which is essentially the clearing house for the 'industry'.
In fact the Thai-Cambodia border conflict is due to this industry, and a breakdown in the relationship between Thai and Cambodian leaders over it, with the wiley cambodian leader yet again provoking the sensitive border issue for political gain.
No, it was a "Russia invading Ukraine" sized miscalculation.
The "wily" Cambodian leader's military got their asses handed to them by the Thai army, and Cambodia is suffering a lot more from the still ongoing border closure than Thailand is. Remittances, tourism, trade, you name it, it's all in the doldrums. (Good time to visit Angkor Wat if you can swing it, though.)
I'm living in Thailand and been following scam centers for years now. It's 100% the scam center fallout mixed with regional politics.
Cambodia is fully commited to scam centers and Thailand doesn't like that and even reached out to Xi directly for cooperation here. Not even a year later the conflict broke.
Finally, cambodia is not suffering at all and if anything the current dictator has become significantly stronger and the country has been on a huge nationalist rise as the dictators control the scam centers and easily repurpose them for online propaganda.
Cambodian people are suffering, no doubt about it, but what you say about the surge in nationalism and entrenching his position is certainly true; the 'leadership' has only gotten stronger.
It's surreal how Cambodians are blindly, even passionately, following the government narrative of evil rapacious Thailand invading innocent peace-loving Cambodia, when there is strong evidence showing it was Cambodia provoking the issue to meddle in Thai politics, but there is such deep-seated pride (on both sides I think) that truth is disregarded.
Militarily you are right, but remember war is politics by other means.
Thailand's Thaksin is now in jail and his daughter, basically his avatar, has been removed from government. Mission accomplished.
And to get a sense of how powerful this scam industry is in the country, the latest news is of a young Korean murdered after being kidnapped by a scam gang. Korea has responded forcefully, calling out the danger, yet the Cambodian press is now full of accusations that Korea is defaming Cambodia, that they are just as guilty of human-trafficking Cambodian brides, that some Koreans who were 'rescued' from a scam center don't actually want to go home, that the international press are unfairly treating Cambodia ... you know the story by now.
So in these cases of government seizing bitcoin, the people they seize from have unencrypted private keys?
The article just says "private keys the defendant had in his possession" does this mean he was holding onto private keys that had no passwords / encryption at all that unlocked $15B?
Or does the government have an alternative way of "seizing" bitcoin? I remember years ago people throwing around conspiracy theories that bitcoin was invented by the NSA / other 3 letter agencies with a backdoor to basically allow easy tracking / seizure of criminal assets.
Im not a conspiracy theorist, but stories like these were the government seems so easy to seize such incredibly large amounts of money so easily seems to suggest some other mechanisms that aren't public.
> Zhi and a network of top executives in the Prince Group are accused of using political influence in multiple countries to protect their criminal enterprise and paid bribes to public officials to avoid actions by law enforcement authorities targeting the scheme, according to prosecutors.
Gentle reminder that the presence of a strong democratic regime with law and no bribes keeps the world a better place.
Once the US becomes corrupted at this scale we are doomed to this bullshit.
Already past that, I'm afraid. With the Presidential cryptocurrency and the lack of investigation into Supreme Court finances, it's going to be grift all the way down.
I'm not sure how you can pull out of it without jailing a significant fraction of the Republican party (and quite a few elderly Democrats). Plenty of people around Trump got jailed and that didn't make a difference.
We basically have that in the US except the government has a monopoly on the police force. The libertarian police corp would be infinitely better as at least there would be competition for police services.
It’s only technically incorrect to suggest that Musk should protest over the recent $15B scam profit seizure—it was from Cambodian scams, whereas the compounds that reportedly had to switch to Starlink due to being disconnected from the Internet are in Myanmar[0]—but yes, it’s still unclear why would Musk not shut any of it down if they have the capability (and if they don’t, then it’s another interesting controversy).
Aha, now this administration can flood the markets with BTC sells leaving $TRUMP as the only true stablecoin!!
I wish this were really just a joke, but I wouldn’t put it past them to raid, hoard, dump, and therefore crash the price of Bitcoin as a strategy to undermine Bitcoin’s position as a stable digital asset for storing value.
Perhaps though it would be just as scurrilous to hoard Bitcoin and not sell it, in an effort to prop up all digital coins as being things of value when they really aren’t?
The only real conclusion I can rely on is it is problematic for one’s government to be run by a tulip bulb salesman while also raiding criminals with tulip bulb warehouses.
Who they were scamming, Americans? How they managed to gain trust, even considering strong accent or grammatical mistakes. How do they identify and trace these Chinese fraudsters? They all look the same and have a name like Hi Lo. Where the money go... of course real estate.
With the recent insane moves in quantum stocks almost makes me wonder if there’s a possibility the NSA or other USG agency is far enough ahead of publicly known capabilities in quantum computing to brute force private keys/break encryption and this info is leaking into markets.
Of course the more likely explanation is that this was a sophisticated albeit classical hack (infrastructure, social engineering, surveillance, whatever) and the quantum run-up is unrelated retail investor hysteria, but have to consider the possibility the market knows something I don’t. If the government stays far ahead enough of private industry at some point in the coming years (or decades) the USG will break encryption without public disclosure unless quantum resistant algs are put in place before that capability is achieved. Hopefully this more exotic implausibility isn’t the explanation, but entertaining to consider, and history is bizarre enough for it to be true.
I certainly do. If I really thought such a fringe explanation was anything more than highly improbable I don’t think I would feel comfortable even mentioning it at all. Still I find it a worthwhile exercise to consider outlier scenarios. The real story of course is probably even more bizarre and fascinating but I’m not sure we’ll get the declassified details this century of how the USG pulled off the biggest heist from heisters ever.
The spectre of a similar scam has resulted in lower Chinese tourism to Thailand. Basically Chinese (among other nationalities) tourists were led from the airport by fake immigration staff, put into cars and driven to Burma and forced to work 18 hour days in scam call centers.
A chilling but extremely worthwhile read.
https://www.reuters.com/graphics/SOUTHEASTASIA-SCAMS/mypmxwd...
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