January 09, 2026
By Anjali Kochhar
Cambodian authorities have detained and extradited businessman Chen Zhi, a Chinese tycoon long based in Cambodia, to China following allegations that he played a central role in one of the largest cryptocurrency fraud operations ever uncovered.
Chen, the founder and chairman of Prince Holding Group, was arrested earlier this week along with two other Chinese nationals, according to Cambodia’s Interior Ministry. The group was transferred to Chinese custody at Beijing’s request as part of bilateral cooperation on transnational crime. Cambodian officials confirmed that Chen’s Cambodian citizenship was revoked in December, clearing the way for his extradition.
The arrest follows sweeping allegations by the United States Department of Justice, which last year linked Chen to a vast criminal network responsible for online investment scams, money laundering and human trafficking. In October, U.S. prosecutors announced the seizure of approximately 127,000 bitcoin connected to the scheme, valued at roughly $15 billion at the time. The confiscation marked the largest asset seizure in the department’s history.
According to U.S. authorities, Chen’s alleged network operated sophisticated fraud schemes commonly known as “pig butchering,” in which victims are lured through social media and messaging platforms into fake romantic relationships or investment opportunities. Victims are gradually persuaded to transfer funds, often in cryptocurrency, which are then laundered through a web of shell companies and digital wallets.
Human rights groups and investigators have also accused Chen-linked entities of operating scam compounds across Cambodia. These facilities allegedly relied on trafficked workers who were forced to conduct online fraud under threats of violence or imprisonment. Survivors have described being held in guarded compounds and subjected to abuse if they failed to meet fraud targets.
Despite the allegations, Chen maintained a high public profile in Cambodia for years. His conglomerate invested heavily in real estate, hospitality, financial services and infrastructure, while also sponsoring charitable projects and public events. The contrast between his public image and the criminal allegations has drawn sharp scrutiny of Cambodia’s business and regulatory environment.
Chen has also been sanctioned by the United States and the United Kingdom, with authorities freezing assets and designating his network as a transnational criminal organisation. While U.S. prosecutors have charged Chen, there is no extradition treaty between the United States and Cambodia, limiting Washington’s ability to secure his transfer.
With Chen now in Chinese custody, it remains unclear how aggressively Beijing will pursue the case or whether charges will reflect the scope of the international allegations. Meanwhile, investigators say efforts continue to track remaining assets and identify additional suspects connected to the sprawling crypto fraud network.
The case underscores growing global cooperation in combating large scale cryptocurrency crime, as well as the challenges of policing digital financial systems that operate across borders.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
