Chinese authorities have taken custody of Chen Zhi, a businessman linked to what U.S. officials have described as one of the largest cryptocurrency fraud and money laundering operations uncovered to date, according to statements from Cambodia’s Ministry of Interior.
Summary
- Chen Zhi, officials allege, oversaw one of the largest crypto fraud and money laundering schemes on record.
- The founder of Cambodia-based Prince Group is accused by U.S. and U.K. authorities of operating a network involved in “pig butchering” scams, money laundering, and forced labor.
- Prince Group has denied the allegations, though it has been designated a transnational criminal organization and sanctioned by Western governments.
Chen Zhi, 38, along with two associates, Xu Ji Liang and Shao Ji Hui, was reportedly arrested on January 6 following months of joint investigations by Cambodian and Chinese authorities, Cambodia China Times and the Ministry of Interior reported.
The deportation was conducted under a bilateral cooperation agreement addressing transnational crime. Chen’s Cambodian citizenship was revoked by royal decree in December 2025, according to Cambodian authorities.
Chen founded Prince Group, a conglomerate operating in Cambodia since 2015 with interests spanning real estate, finance, and hospitality. U.S. and U.K. authorities have alleged the company served as a front for a criminal network involving online fraud, money laundering, and forced labor. Prince Group has denied all allegations.
The deportation follows enforcement action by U.S. federal prosecutors in October seeking to seize more than 127,000 bitcoin allegedly tied to wallets operated by Chen and his network. The bitcoin was valued at approximately $15 billion at the time, representing the largest cryptocurrency seizure associated with online fraud to date, according to court filings.
The U.S. Treasury and U.K. government have jointly designated Prince Group as a transnational criminal organization. U.S. sanctions have been applied to dozens of cryptocurrency wallets containing hundreds of millions of dollars in Bitcoin, according to Treasury Department statements.
The alleged schemes, known as “pig butchering” scams, involve building trust with victims before directing them to fraudulent cryptocurrency trading platforms. Once funds are deposited, the platforms cease operations. Investigators stated that proceeds were transferred through more than 100 shell companies, cryptocurrency exchanges, and mining operations before being consolidated into private Bitcoin wallets.
Under Chinese law, authorities may prosecute citizens for serious crimes committed abroad, particularly those involving fraud, money laundering, and human trafficking. Official charges have not been announced. Chinese courts have previously imposed severe sentences in similar cases, including life imprisonment and, in cases involving violence or forced labor, capital punishment, according to legal experts.
Chinese authorities are expected to pursue asset forfeiture and may coordinate with foreign governments, given that U.S. officials have already seized billions of dollars in Bitcoin connected to the case. Those assets could be allocated for victim compensation pending court approval, according to legal analysts.
The arrest occurs amid a broader international effort to combat cryptocurrency-enabled fraud networks operating across Southeast Asia. Over the past year, regulatory and law enforcement agencies have collaborated with major cryptocurrency firms to freeze and recover illicit funds.
Tether, Binance, Coinbase, and blockchain analytics firms have assisted in tracing and blocking assets tied to pig-butchering schemes, according to industry reports. U.S. data indicates reported losses from these schemes reached $3.6 billion in 2024, reflecting their expanding scale.
Source: https://crypto.news/chinese-business-15-billion-bitcoin-cambodia-deported/
