Cambodia Extradites Notorious Crypto Scam Leader to China

Introduction to the Extradition

Cambodia has extradited Chen Zhi, a billionaire businessman accused of orchestrating one of the largest cryptocurrency scams, to China. Authorities allege that Chen exploited trafficked laborers in forced labor camps to facilitate a widespread fraud scheme targeting victims globally.

Details of the Transnational Investigation

Chen Zhi was arrested in Cambodia on January 6 alongside two other Chinese nationals after an extensive international investigation into transnational criminal activities. Prior to this arrest, Chen had been charged by U.S. authorities in October for conducting internet scams that reportedly stole billions in cryptocurrency from victims while operating out of Cambodia. Additionally, the United Kingdom imposed sanctions on his corporate empire, known as Prince Group.

Prince Group’s financial arm, Prince Bank, has had its operations suspended by Cambodian regulators. The bank is in the process of liquidation and is barred from initiating new services, though existing customers retain the ability to withdraw funds and repay debts. China’s official media described Chen as the leader of a significant cross-border gambling and fraud network, implicating him in various criminal charges including illegal casino operations and money laundering.

Law Enforcement Actions and Warnings

Chinese security agencies have placed Chen under legal restrictions and announced imminent arrest warrants for key members of his criminal organization. Authorities have urged those involved in the network to cease their illegal activities and surrender promptly to receive more lenient treatment.

Last year, U.S. officials seized approximately $15 billion in Bitcoin connected to Chen’s operations, an action regarded by FBI leadership as one of the largest financial fraud takedowns ever undertaken. Despite the allegations, Prince Group maintains that its core businesses focus on legitimate sectors including real estate, finance, and consumer services.

Chen Zhi’s Status and Human Trafficking Concerns

Chen’s Cambodian citizenship was revoked last month following a royal decree. Notably, Chen relinquished his Chinese citizenship twelve years earlier in 2014. There are serious concerns about the human trafficking dimension of these fraud schemes — United Nations reports suggest that hundreds of thousands have been trafficked into Southeast Asia, including Cambodia. Many victims, often of Chinese origin, are coerced into participating in online scams under threat of harsh punishment or torture.