Billionaire Mastermind Behind Global Crypto Scam Extradited to China

Cambodia has extradited billionaire businessman Chen Zhi to China, where he faces charges of masterminding a sophisticated cryptocurrency scam that allegedly used trafficked workers in forced labour camps to defraud victims worldwide. The extradition marks a significant development in international efforts to dismantle transnational criminal networks operating across Southeast Asia.

Chen, 37, was among three Chinese nationals arrested on January 6 following a months-long joint investigation into cross-border crime, according to Cambodian authorities. His business empire, Prince Group, had previously been sanctioned by both the United States and United Kingdom for alleged involvement in massive financial fraud schemes.

Background and Context

The case highlights a disturbing trend in Southeast Asia, where criminal organizations have established industrial-scale scam operations targeting victims globally. According to United Nations estimates, hundreds of thousands of people have been trafficked to the region, many to Cambodia, lured by promises of legitimate employment only to find themselves trapped in compounds where they are forced to conduct online fraud under threat of violence.

These "scam farms" have become so prevalent that by some estimates, fraudulent activities may account for approximately half of Cambodia's entire economy. The operations typically target victims internationally, with many of those trafficked compelled to deceive people in their home countries, particularly China.

Key Figures and Entities

Chen Zhi, who relinquished his Chinese citizenship to become a Cambodian national in 2014, built Prince Group into a conglomerate spanning property development, financial services, and consumer businesses. According to court documents and official statements, he operated alongside Xu Ji Liang and Shao Ji Hui, who were also extradited to China.

The business empire included Prince Bank, which Cambodian authorities have now suspended and placed into liquidation, banning it from offering new banking services while allowing customers to maintain access to existing accounts. The National Bank of Cambodia announced these measures as part of coordinated action against Chen's operations.

Despite maintaining a public profile as a legitimate businessman, Chen cultivated close relationships with Cambodia's ruling elite. His Cambodian citizenship was revoked by royal decree last month, shortly before his arrest and extradition.

Legal and Financial Mechanisms

The sophisticated operation allegedly used cryptocurrency to facilitate massive fraud schemes, with US authorities seizing approximately $15 billion in bitcoin believed to belong to Chen. FBI Director Kash Patel described the seizure as "one of the largest financial fraud takedowns in history" when charges were announced in October.

Chinese state media, including CCTV, has characterized Chen as "the head of a major cross-border gambling and fraud syndicate" suspected of multiple crimes including operating casinos, fraud, illegal business operations, and concealing criminal proceeds. The Beijing Municipal Public Security Bureau had established a dedicated task force to investigate Prince Group as early as 2020.

The UK sanctions against Prince Group and Chen personally demonstrate the international scope of the investigation, while the US indictment accused him of running internet scams from Cambodia that resulted in billions in cryptocurrency theft.

International Implications and Policy Response

Chen's extradition underscores growing international cooperation to address transnational crime networks that have exploited regulatory gaps across jurisdictions. The case reveals how criminal enterprises have leveraged cryptocurrency and offshore structures to launder proceeds while using forced labour to sustain operations at scale.

The Cambodian government's limited response to US and UK sanctions—apart from requesting evidence supporting allegations—highlights the challenges international authorities face when confronting criminal networks with deep local connections. Chinese authorities have warned they will "soon issue arrest warrants for the first batch of key members of Chen Zhi's criminal syndicate, resolutely bringing fugitives to justice."

Journalist Jack Adamovic Davies, who has investigated Chen's operations, told the BBC that it was shocking Prince Group had built a "global footprint" without raising alarm bells given the serious criminal charges it faces. The sheer scale of operations, combined with alleged political connections, enabled the enterprise to flourish despite mounting evidence of illicit activities.

Sources

This report draws on statements from Cambodia's Interior Ministry and National Bank of Cambodia, US Department of Justice charges, UK sanctions announcements, UN reports on human trafficking, and coverage by BBC and other international media outlets. Additional context comes from court documents and official statements from Chinese authorities regarding ongoing investigations into transnational fraud operations.