Chen Zhi: Cambodia Extradites Alleged Scam Mastermind to China After Arrest

Phnom Penh, Cambodia – Cambodian authorities have confirmed the extradition of billionaire businessman Chen Zhi to China, marking a significant development in a transnational crime investigation that spans continents and alleges billions in cryptocurrency fraud. Chen Zhi, a figure whose Cambodian nationality was revoked just last month, was apprehended on January 6th along with two other Chinese nationals, Xu Ji Liang and Shao Ji Hui, following an extensive joint investigation into international criminal activities. The extradition was announced by the Cambodian interior ministry, though the specific location of Chen Zhi’s detention was not immediately disclosed.

The 37-year-old businessman, born in southeastern China, had become a prominent figure in Cambodia, having acquired Cambodian citizenship in 2014 after renouncing his Chinese nationality. His arrest and subsequent extradition follow grave accusations from the United States, which indicted him last October for orchestrating vast internet scams from Cambodia that allegedly siphoned billions of dollars in cryptocurrency. In a landmark move, the U.S. Treasury Department announced the seizure of approximately $14 billion (equivalent to £10.4 billion) in Bitcoin, which it asserted belonged to Chen Zhi. This financial action, alongside sanctions imposed by the United Kingdom on his extensive global business empire, Prince Group, represents one of the most substantial takedowns of financial crime in history and the largest single seizure of Bitcoin ever recorded.

U.S. prosecutors have characterized the operation as one of the largest financial enforcement actions ever undertaken by the United States government. Prince Group, with its diverse portfolio encompassing property development, financial services, and consumer services, has previously denied any involvement in fraudulent activities when contacted by the BBC. The group’s website outlines a broad range of business interests, yet its operations have come under intense scrutiny due to the allegations of illicit activities.

Chen Zhi’s whereabouts had been a subject of speculation since his indictment by the U.S. on charges of fraud and money laundering in October. The Cambodian interior ministry’s statement on Wednesday provided the first official confirmation of his apprehension and transfer to Chinese authorities. The revocation of his Cambodian citizenship by royal decree in the preceding month underscored the escalating international pressure and scrutiny surrounding his affairs.

The case of Chen Zhi and the Prince Group is deeply intertwined with a broader, disturbing trend of human trafficking and forced labor that has proliferated across Southeast Asia, particularly in Cambodia. United Nations estimates suggest that hundreds of thousands of individuals have been trafficked into the region, often lured by the promise of legitimate employment. Once in these countries, many find themselves trapped in virtual or physical “scam farms,” forced to engage in online fraudulent activities under duress, facing threats of punishment or even torture. A significant proportion of these victims are Chinese nationals themselves, often compelled to target people within China.

Chinese authorities have also been conducting their own investigations into the Prince Group, reportedly since at least 2020. Court cases in China have accused the company of operating online fraud schemes. The Beijing Municipal Public Security Bureau, for instance, established a dedicated task force to investigate what it described as "a major transnational online gambling syndicate based in Cambodia." This indicates a concerted effort by Chinese law enforcement to dismantle operations that are allegedly causing significant harm to its citizens.

The Prince Group’s alleged criminal enterprise has reportedly permeated various sectors of the Cambodian economy. By some estimates, businesses associated with scam operations may constitute as much as half of Cambodia’s entire economy, highlighting the pervasive nature of these illicit activities and their potential impact on national economic structures.

Chen Zhi’s ascent in Cambodia was marked by close ties to the country’s ruling elite. The Cambodian government has maintained a relatively muted public stance since the U.S. and UK imposed sanctions on Prince Group, with officials previously urging both U.S. and UK authorities to ensure they possessed sufficient evidence before making such serious allegations. This cautious approach may reflect the complex business and political landscape in which Chen Zhi operated.

Journalists who have investigated Chen Zhi’s activities have emphasized the sheer scale of his operations as a defining characteristic. Jack Adamovic Davies, a journalist who has extensively covered Chen Zhi, told the BBC last year that it was “shocking” how the Prince Group had managed to establish a “global footprint” without triggering earlier alarms, given the gravity of the criminal charges now being leveled against it. The ability of the organization to operate on such a vast international scale, allegedly without significant early intervention, raises questions about oversight and regulatory effectiveness in the region.

The extradition of Chen Zhi to China signifies a crucial step in holding individuals accountable for large-scale transnational fraud and human trafficking. It underscores the growing international cooperation among law enforcement agencies to combat sophisticated criminal networks that exploit vulnerable populations and engage in illicit financial activities on a global scale. The case also highlights the ongoing challenges faced by countries in Southeast Asia in addressing the proliferation of scam operations, which often leverage sophisticated technology and exploit economic disparities to ensnare victims and perpetrators alike. The full extent of Chen Zhi’s alleged crimes and the impact of his operations will likely continue to unfold as legal proceedings progress in China and potentially in other jurisdictions affected by his alleged activities.

Additional reporting by South East Asia correspondent Jonathan Head.