$12B Crypto Kingpin Arrested in Cambodia Crackdown

The leader of a $12 billion crypto fraud in which pig-butchering scams were used to execute was arrested by Cambodian authorities. After a month-long investigation, he was extradited to China.

A large-scale crackdown was conducted by the Cambodian security forces, and Chen Zhi was arrested. The Chinese-born magnate is accused of orchestrating a scheme that embezzled more than 12 billion dollars from unsuspecting people all over the world. 

The arrest was confirmed by the Interior Ministry. Two suspected accomplices were detained with Chen. 

In December 2025, his Cambodian citizenship was suspended, and he was deported to China at the request of Beijing. 

Months of investigation preceded the arrest, and the authorities could trace his activities in different countries. His criminal business was not new, and the victims were located in the United States and elsewhere.

Fortune Built on Fraud and Forced Labor

Prince Holding Group, by Chen, became one of the biggest criminal networks in Asia. The Wall Street Journal said that the U.S. authorities charged him in October with conspiracy to commit wire fraud and money laundering. 

The scheme was based on a series of pig-butchering schemes in which fraudsters establish a false sense of trust with the victims and loot their finances. The term is based on fattening livestock prior to slaughtering.

Forced compliance was also reported by the victims at scam sites. The company that Chen worked for coerced and manipulated workers into fraudulent schemes. 

Employees were forced to be involved. His crew forcibly introduced hundreds of employees to fraud compounds, relocating personnel to different places in Cambodia. 

The operations were controlled directly by technology, as the records were made of every fraudulent location. Cryptocurrencies were being used by partners to conceal illegal income.

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Billions Seized in Historic Confiscation

The investigators have followed 127,271 bitcoins back to a Chen operation worth approximately $11.6 billion. These were the biggest seizures in history as the U.S. authorities confiscated them. 

Pablo Picasso paintings and visits to costly locations were all part of the lavish lifestyle of Chen and his partners. Their criminal lifestyle was hidden as cryptocurrencies were used to cover their profits.

The Department of Justice was imposing a penalty, and Chen and his co-conspirators were getting harsh penalties. The accusations are a caution, with the intention of preventing similar acts. 

According to Chainalysis reports, the numbers are wider: more than $75 billion was spent on computer-related crimes, and criminal organizations possessed almost $15 billion in July, which is 300 times more than the statistics in 2020. These numbers point to the increasing dangers within the ecosystem.

Criminal activities are still empowered by technology. Cryptocurrency anonymity is a vulnerability used by fraudsters, which has increased efforts by law enforcement agencies. International collaboration is important in fighting these crimes.

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