Alleged Scam Kingpin Chen Zhi Sent to China After Cambodia Arrest

• Chen Zhi was arrested in Cambodia and extradited to China after probes into a major global crypto fraud network.
• US prosecutors had earlier indicted Chen Zhi for running a huge online fraud operation.
• Chen Zhi founded Prince Holding Group, which US and UK officials say masked large-scale criminal activity.

Two days ago, it was reported that Chen Zhi, accused of running one of the world’s biggest online scam networks, was arrested in Cambodia and sent back to China. This came after months of international investigations into a vast criminal enterprise linked to fraud and crypto crime.

After a request from Chinese police, Cambodian officials canceled Chen’s citizenship and sent him back to China’s Ministry of Public Security, with the Ministry calling the handover a big win against global criminal networks.

US prosecutors had earlier indicted Chen Zhi for running a huge online fraud operation. The scheme reportedly stole billions of dollars, largely through “pig butchering” crypto scams where scammers befriend victims online and then trick them into sending money to fake investment websites.

The US Department of Justice, the Treasury Department, and the UK Foreign Office have sanctioned Chen and his associates, accusing them of wire fraud, money laundering conspiracies, and using legitimate business fronts to mask criminal operations.

Officials say they have seized over $14 billion of assets worth in cryptocurrency connected to Chen’s network, making it the largest crypto seizure ever tied to a single fraud case.

Facade and Fraud

Chen Zhi created the Prince Holding Group, a large company with businesses in real estate, banking, finance, and entertainment. While it looked like a legitimate empire, US and UK officials claimed it was actually a cover for crime, using fake companies and business branches to move illegal money across over 30 countries.

Investigators have also tied his network’s scam operations to forced labor and human trafficking. Reports allege that workers were kept in locked-down compounds in Cambodia and neighboring countries, forced to run online scams. Groups like Amnesty International have described the conditions at these locations as severe and abusive.

Intriguingly, Chen’s extradition showed a rather complicated legal and political situation. Although U.S. authorities had charged and sanctioned Chen, Cambodian officials transferred him to China following a request from Chinese law enforcement. 

Related: Chen Zhi’s Rise and Fall: How a Fujian-Born Tycoon Became the Center of a $15 Billion Global Fraud Case