Police reportedly detained Chen Zhi, the founder and chairman of Prince Group, before deporting him to China for
investigation by Chinese authorities. According to Bloomberg, Zhi left Cambodia
under escort to face questioning over alleged financial crimes and scam
operations.
Sanctions, Bitcoin Seizure and Fraud Allegations
In October, the US Department of Justice unsealed an indictment that accused Chen Zhi of wire fraud and money laundering in
connection with a global cryptocurrency scheme built on forced‑labour scam
compounds in Cambodia.
US authorities said they seized about 127,000 bitcoin,
valued at roughly $15 billion at the time, in what they described as the
largest forfeiture action in the department’s history.
The same operation prompted the US Treasury and the UK
government to sanction Prince Group and associated individuals and entities as
a transnational criminal organization.
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Officials alleged that networks under Chen’s control
used shell companies, unhosted wallets and a tangle of corporate structures to
launder proceeds from “pig butchering” investment scams, online fraud and other
crimes.
Alleged Scam Compounds and Forced Labour
Investigators and rights groups accuse Zhi and
Prince Group of running or backing large scam compounds in Cambodia that relied
on trafficked workers. These facilities allegedly detained people under
coercive conditions and forced them to operate phone and online fraud schemes
that targeted victims around the world.
What’s most interesting is wallet addresses listed in the US government $14B (127K BTC) seizure previously were named in a Milky Sad report ~2 years ago for having vulnerable private keys and now the USG says they have custody of them. https://t.co/sHNwMXhLKH pic.twitter.com/icLWKU33kC
— ZachXBT (@zachxbt) October 14, 2025
Court filings and analytical reports describe “phone
farms” and industrial‑scale cyberfraud operations that blended crypto trading
pitches, fake investments and romance scams. Analysts say the network grew into
one of Asia’s most significant criminal enterprises, with operations and
financial links stretching into Southeast Asia, Europe and beyond.
Taiwanese media LTN said Prince Group helped provide
more than half of a US$260 million grant to Cambodia in 2018, raising questions
about how business, politics and security interests intersected around the
conglomerate.
Suspected Links to Chinese Intelligence and Global Reach
Local media accounts also note that Chen reportedly bought
properties in multiple jurisdictions, including units in London located near
the US embassy, and used a web of companies to expand his footprint. Financial
watchdogs in Singapore, Thailand and other markets have reportedly moved to
scrutinize or freeze assets linked to firms associated with the group.
Chen’s removal from Cambodia to China signals a shift
in how authorities handle alleged scam bosses who once operated from loosely
regulated hubs. For years, critics argued that law‑enforcement agencies moved
too slowly even as the suspected network grew and victims multiplied across
continents.
The investigation in China now adds another layer to
ongoing legal actions in the US, UK and other jurisdictions over Bitcoin
forfeiture, property seizures and sanctions enforcement.
This article was written by Jared Kirui at www.financemagnates.com.
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