Accused Scam Boss Arrested in Cambodia, Extradited to China
Chinese-born tycoon Chen Zhi, accused of masterminding a vast cyberscam and money-laundering network operating from Cambodia, has been arrested and extradited to China, Cambodian authorities announced on Wednesday.
Chen was indicted by the United States last year on charges of wire fraud and money laundering linked to a multibillion-dollar online scam operation. According to US prosecutors, Chen directed the activities of forced labour compounds across Cambodia, where trafficked workers were allegedly detained in prison-like facilities surrounded by high walls and barbed wire and forced to carry out online fraud schemes.
Cambodia’s Interior Ministry said Chen was arrested along with two other Chinese nationals, Xu Ji Liang and Shao Ji Hui, and extradited to the People’s Republic of China on Tuesday. The operation was conducted as part of international cooperation to combat transnational crime and followed several months of joint investigations at the request of Chinese authorities.
The ministry added that Chen’s Cambodian citizenship was revoked by royal decree in December, clearing the way for his extradition. Chinese authorities had not commented publicly on the case as of Wednesday evening, while the US Justice Department declined to respond to questions regarding the arrest.
Chen is the founder of Prince Holding Group, also known as Prince Group, a multinational conglomerate that US authorities allege served as a front for one of Asia’s largest transnational criminal organisations. Since the unsealing of the US indictment and the imposition of sanctions by Washington and London in October, authorities in Europe, the United States and Asia have moved to seize assets linked to Chen and his companies.
According to US court documents, scam workers under Chen’s network were forced, often under threat of violence, to carry out so-called “pig butchering” scams. These schemes typically involve building trust with victims over time before persuading them to invest in fraudulent cryptocurrency ventures, ultimately stealing their funds. The scams have targeted victims worldwide and caused billions of dollars in losses.
US prosecutors allege that Chen could face up to 40 years in prison if convicted on charges related to wire fraud and money laundering conspiracies. The case involves approximately 127,271 bitcoin seized by US authorities, valued at more than US$11 billion at current prices.
Prince Group has repeatedly denied the allegations, maintaining that its business operations are legitimate. However, US authorities claim that since around 2015 the group has operated in more than 30 countries under the appearance of real estate, financial services and consumer businesses while concealing illicit activities.
Investigators also allege that Chen and senior executives used political influence and bribery to shield their operations. In Cambodia, Chen reportedly served as an adviser to Prime Minister Hun Manet and former prime minister Hun Sen.
Cambodia, along with neighbouring Myanmar and other parts of Southeast Asia, has become a regional hub for scam centres, hosting tens of thousands of people involved in online fraud operations. Experts say many workers are trafficked and coerced, highlighting the growing scale and complexity of the region’s cybercrime industry.
