Cambodia has extradited to China a billionaire businessman accused of orchestrating an extensive cryptocurrency fraud operation that allegedly involved trafficked workers forced to defraud victims worldwide from labour camps. Chen Zhi was among three Chinese nationals arrested on 6 January following a multi-month joint investigation into transnational crime, according to Cambodian authorities.
The 37-year-old entrepreneur was charged by US authorities in October with operating internet scams from Cambodia that allegedly stole billions in cryptocurrency. The United Kingdom also imposed sanctions on his global business empire, Prince Group. Cambodian authorities have subsequently suspended operations at Prince Bank, a Prince Group subsidiary.
The bank has been placed into liquidation and prohibited from offering new banking services, though customers retain the ability to withdraw funds and repay loans, the National Bank of Cambodia announced on Thursday.
Chinese state media confirmed the extradition, characterising Chen Zhi as “the head of a major cross-border gambling and fraud syndicate suspected of multiple crimes, including operating casinos, fraud, illegal business operations and concealing criminal proceeds”. CCTV reported that he had been “placed under coercive measures in accordance with the law”.
The broadcaster stated that public security organs would soon issue arrest warrants for the first group of key members of Chen Zhi’s alleged criminal syndicate, emphasising their determination to bring fugitives to justice. CCTV issued a warning to criminals to recognise the situation, cease their activities and surrender to authorities to receive lenient treatment.
US authorities seized approximately $15 billion worth of bitcoin last year that they alleged belonged to Chen, in what FBI Director Kash Patel described as “one of the largest financial fraud takedowns in history”. Prince Group has previously denied involvement in scams. The Cambodia-based group’s website lists property development and financial and consumer services among its business interests.
Since Chen Zhi was indicted by the US on fraud and money laundering charges in October, his whereabouts had remained unclear. On Wednesday, Cambodian authorities confirmed they had “arrested three Chinese nationals namely Chen Zhi, Xu Ji Liang, and Shao Ji Hui and extradited them to the People’s Republic of China”.
The interior ministry statement did not disclose the location of Chen Zhi’s detention. His Cambodian nationality was revoked by royal decree last month, the statement added. The enigmatic tycoon had renounced his Chinese nationality to become a Cambodian citizen in 2014.
The United Nations estimates that hundreds of thousands of people have been trafficked to South East Asia, many to Cambodia, lured by promises of legitimate employment before being forced to operate online scams. Victims are held against their will in scam facilities and compelled to defraud strangers online under threat of punishment or torture. Many of those trapped are Chinese nationals who targeted people in China.
Chinese authorities have been investigating Prince Group since at least 2020. The company faces accusations of running online fraud schemes in numerous court cases. The Beijing Municipal Public Security Bureau established a task force to investigate Prince Group, describing it as “a major transnational online gambling syndicate based in Cambodia”.
US authorities allege that Chen Zhi transformed Prince Group into one of Asia’s largest transnational criminal organisations. Cambodia’s ruling elite have maintained close ties with Chen Zhi for years. The government has issued limited statements since the US and UK sanctioned Prince Group, primarily urging US and UK authorities to ensure sufficient evidence supported their allegations.
Some estimates suggest that scam businesses may account for approximately half of the entire Cambodian economy. Jack Adamovic Davies, a journalist who investigated Chen Zhi, observed that the sheer scale of his operations distinguished him from others. He expressed shock that Prince Group had been able to establish a global presence without raising alarm bells, given the serious criminal charges it now faces.
