Phnom Penh: Cambodia has extradited a billionaire businessman, Chen Zhi, to China, following his arrest for allegedly masterminding a massive cryptocurrency scam. The accused reportedly orchestrated a scheme that trafficked workers into forced labor camps, defrauding victims worldwide.
According to BBC, Chen Zhi was arrested on January 6th along with two other Chinese nationals, concluding a months-long joint investigation into transnational criminal activities. Last October, the United States charged the 37-year-old with running internet scams from Cambodia, which allegedly resulted in the theft of billions in cryptocurrency. The UK has also sanctioned his global business empire, Prince Group.
In response to the allegations, Cambodian authorities have suspended operations of Prince Bank, a subsidiary of Prince Group. The National Bank of Cambodia announced that the bank has been placed in liquidation and is prohibited from offering new banking services, though existing customers can still withdraw funds and repay loans.
Chinese state media confirmed Chen Zhi's extradition, labeling him as "the head of a major cross-border gambling and fraud syndicate" involved in multiple criminal activities, including fraud and illegal business operations. CCTV reported that Chen Zhi is under "coercive measures" in compliance with the law and that arrest warrants for key syndicate members would soon be issued.
In a significant move last year, U.S. authorities seized approximately $15 billion in bitcoin linked to Chen, marking one of the largest financial fraud busts in history, according to FBI Director Kash Patel. The Prince Group, based in Cambodia, has previously denied involvement in scams, maintaining that its operations span property development and financial services.
Chen Zhi's whereabouts had been unclear since his indictment by the U.S. on fraud and money-laundering charges in October. However, Cambodia's interior ministry recently confirmed the arrest and extradition of Chen and two other Chinese nationals. The ministry's statement did not specify where Chen was detained, but it noted that his Cambodian nationality had been revoked last month. Chen, who became a Cambodian citizen in 2014, had renounced his Chinese nationality.
The UN estimates that hundreds of thousands have been trafficked to Southeast Asia under false promises of legitimate employment, only to be forced into running online scams. Chinese authorities have been investigating the Prince Group since at least 2020, accusing it of operating online fraud schemes.
The Beijing Municipal Public Security Bureau has described the Prince Group as a "major transnational online gambling syndicate based in Cambodia." Despite long-standing ties between Cambodia's ruling elite and Chen Zhi, the Cambodian government has remained relatively silent, urging the U.S. and UK to ensure they have adequate evidence for their allegations against Prince Group.
Scam operations are believed to comprise a significant portion of Cambodia's economy. Journalist Jack Adamovic Davies noted that Chen's vast operations are particularly notable, with the Prince Group establishing a "global footprint" despite serious criminal charges.