Cambodian authorities have arrested and extradited to China the Chinese-born tycoon Chen Zhi, the founder of the multinational Prince Group. He faces serious fraud and money laundering charges in the United States, where prosecutors allege he oversaw one of Asia's largest transnational criminal networks.
The Arrest and US Allegations
In a statement released on Wednesday, Cambodia's interior ministry confirmed the operation. Three Chinese nationals—Chen Zhi, Xu Ji Liang, and Shao Ji Hui—were arrested "within the scope of cooperation in combating transnational crime" and sent to China following a formal request and months of joint investigation. The ministry added that Chen's Cambodian nationality had been revoked by royal decree in December 2023.
The move follows a bombshell indictment unsealed by the US Department of Justice in October. American authorities accuse Chen of presiding over a multibillion-dollar online scam network operating from compounds across Cambodia. US prosecutors claim the network used forced labour, with trafficked workers held in prison-like facilities surrounded by high walls and barbed wire.
A Vast Criminal Enterprise
According to the US charges, the operation forced workers to execute sophisticated "pig butchering" cryptocurrency investment scams. These schemes build trust with victims over time before stealing their funds, targeting people worldwide and causing billions in losses.
The justice department alleges that since around 2015, the Prince Group has operated across more than 30 countries under the guise of legitimate businesses in real estate, finance, and consumer services. This conglomerate is accused of serving as a front for extensive criminal activities.
Chen and other top executives are alleged to have used political influence and bribed officials in multiple countries to protect their operations. In Cambodia, Chen had served as an adviser to both the current Prime Minister, Hun Manet, and his father, the former long-serving leader Hun Sen.
Global Repercussions and Fallout
The US indictment and subsequent sanctions by Washington and London in October triggered a global response. Authorities in Europe, the US, and Asia have since targeted Prince Group with a series of asset confiscations. The US case involves the seizure of approximately 127,271 bitcoins, valued at over $11 billion at current prices. If convicted in the US on conspiracy charges for wire fraud and money laundering, Chen faces a potential prison sentence of up to 40 years.
The case highlights the scale of illicit scam centres across Southeast Asia. Experts say Cambodia, along with Myanmar and other regional countries, hosts dozens of such compounds where tens of thousands of people—some willing, many trafficked—perpetrate online fraud. These centres often use fake job advertisements to lure foreign nationals, particularly Chinese citizens, into forced labour situations.
Prince Group has consistently denied all allegations. At the time of the announcement, Chinese authorities had not immediately commented on Chen's arrest and extradition, and the US Department of Justice also declined to comment.
