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Cambodia extradites billionaire to China on fraud charges
Cambodian authorities have extradited Chinese businessman Chen Zhi to China, where he faces accusations of masterminding a multi-billion-dollar cryptocurrency scam involving forced labor camps. The 37-year-old was arrested on January 6 alongside two other Chinese nationals following a months-long transnational investigation.
US and UK sanctions target Prince Group empire
The United States charged Chen last October with operating internet scams from Cambodia that allegedly stole billions in cryptocurrency. The UK also imposed sanctions on his business network, Prince Group, which includes Prince Bank-a subsidiary now suspended and placed into liquidation by Cambodia's central bank. Customers can still withdraw funds and repay loans, the National Bank of Cambodia confirmed on Thursday.
China confirms extradition, vows crackdown on syndicate
Chinese state media reported Chen's extradition, labeling him the leader of a "major cross-border gambling and fraud syndicate" accused of crimes including fraud, illegal business operations, and concealing criminal proceeds. CCTV stated he had been placed under "coercive measures" and warned other syndicate members to surrender or face arrest.
"The public security organs will soon issue arrest warrants for the first batch of key members of Chen Zhi's criminal syndicate, resolutely bringing fugitives to justice."
CCTV
Allegations of forced labor and global fraud
US authorities seized $15 billion in Bitcoin last year, alleging it belonged to Chen in what the FBI called "one of the largest financial fraud takedowns in history." The scam reportedly involved trafficking workers-many from China-to Cambodian compounds, where they were forced to defraud victims worldwide under threats of violence. The UN estimates hundreds of thousands have been trafficked to Southeast Asia for such schemes.
Prince Group, which has denied involvement in scams, claims its businesses span property development and financial services. However, Chinese authorities have investigated the company since 2020, with court cases accusing it of running online fraud operations.
Cambodia's ties to Chen and economic impact
Chen, who renounced his Chinese citizenship in 2014 to become a Cambodian national, had his citizenship revoked by royal decree last month. Despite long-standing ties to Cambodia's ruling elite, the government has remained largely silent since the US and UK sanctions, merely urging authorities to verify their evidence.
Analysts suggest scam operations may account for up to half of Cambodia's economy. Journalist Jack Adamovic Davies, who investigated Chen, told the BBC the scale of his operations was "shocking," noting how Prince Group built a "global footprint" despite mounting criminal allegations.
What's next
Chinese authorities are expected to issue arrest warrants for additional syndicate members. Meanwhile, the liquidation of Prince Bank continues, with Cambodian regulators overseeing the process to ensure customer access to funds.
