Federal prosecutors have unsealed an indictment detailing a massive “pig butchering” crypto scheme that allegedly relied on human trafficking and generated billions in illicit profits. Individuals were reportedly held against their will in prison-like compounds, complete with high walls and barbed wire, and forced to defraud people across the globe.

The operation coerced workers into contacting potential victims through social media and messaging apps. They would build trust over time before steering conversations toward fraudulent cryptocurrency investments. Victims were convinced to transfer funds to syndicate-controlled accounts under the promise of high returns, only to have their assets stolen.

At the center of the allegations is a man named Zhi, who is accused of overseeing “phone farms”—automated call centers using thousands of devices to target victims. The indictment claims Zhi instructed subordinates to use violence against trafficked workers who “caused trouble,” cautioning them only not to beat the individuals to death.

Tracing the Laundered Crypto Fortune

To conceal the origin of the funds, the syndicate allegedly used sophisticated cryptocurrency laundering methods. At Zhi’s direction, associates employed techniques known as “spraying” and “funneling,” where large sums of crypto were repeatedly split across numerous wallets before being reconsolidated to break the on-chain audit trail.

While some proceeds were converted to traditional currency or held on exchanges, the bulk of the seized assets—127,271 Bitcoin—was stored in unhosted wallets. Prosecutors state that Zhi personally controlled the private keys to these funds.

The illicit gains were allegedly used to finance an opulent lifestyle that included private jets, yachts, luxury watches, and vacation homes. In one notable accusation, Zhi is said to have used stolen funds to purchase a Picasso painting at a New York auction, embedding the profits from human trafficking into the high-end art market.