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Cambodian authorities arrested Chen Zhi, accused of leading one of the largest cryptocurrency fraud schemes on record, and extradited him to China at Beijing’s request. Investigators allege his network defrauded victims worldwide through pig butchering scams and forced-labour cyber-fraud compounds. Officials said the operation generated more than $12 billion in illicit crypto proceeds, placing the case among the most significant transnational fraud actions in recent years.
Cambodia’s Interior Ministry confirmed Chen’s arrest followed a months-long investigation. Authorities detained him with two alleged co-conspirators before deporting him to the People’s Republic of China. Cambodia revoked Chen’s citizenship in December 2025, clearing the way for extradition.
Legal documents from October implicated Chen in a conspiracy to perpetrate wire fraud and money laundering, among other charges. The prosecution identified him as the creator and head of the Prince Holding Group and pointed out the connection of the firm to the fraudulent websites that were attracting customers in the U.S. and other global markets. Subsequently, U.S. law enforcement termed the organization the largest in Asia in terms of the scale of its operations and the transnational character of its criminal activities.
The lawmen further stated that Chen was the one who sanctioned the use of violence against employees and offered bribes to foreign government workers, among other things. Moreover, the suspects were accused of employing online gambling, cryptocurrency mining, and other business ventures as fronts for washing dirty money. According to U.S. authorities, such measures facilitated massive fraud operations in Southeast Asia.
American prosecutors reported that the organization defrauded at least 250 U.S. victims.
One individual reportedly lost $400,000 in cryptocurrency. In 2024 alone, Americans lost at least $10 billion to Southeast Asia-based scams, according to the U.S. Treasury Department.
The United States and the United Kingdom imposed sanctions on Chen, now 38, and companies linked to him. Authorities targeted assets tied to real estate development and financial services. U.S. officials also seized an estimated $14 billion in bitcoin connected to Chen or his operations.
British authorities froze Chen’s businesses and properties in the country. Those actions included a 12-million-euro mansion and a 100-million-euro office building in London. Officials said the freezes aimed to block access to funds tied to criminal activity.
Investigators reported that Chen and associates spent proceeds on luxury items. Purchases included a painting by Pablo Picasso and travel to high-end destinations. Authorities said such spending traced back to scam-derived funds.
Scam centers expanded across Southeast Asia by luring victims into fake investment schemes. The United Nations Office on Drugs and Crime estimated global scam losses reached between $18 billion and $37 billion in 2023. Officials linked many operations to organized crime networks using digital assets.
Technology played a central role in Chen’s alleged operation. Sources said his team transported hundreds of workers to Cambodia to run fraud sites. They used centralized systems to track locations while relying on cryptocurrencies to conceal earnings.
Beijing intensified regional pressure after scams began targeting Chinese citizens. China worked with Thailand and Myanmar to free nearly 10,000 people from border-area scam compounds. Cambodia also arrested several thousand suspects during a summer crackdown.
Reports from Chainalysis showed more than $75 billion flowed through crypto-related criminal activity after major seizures. Criminal groups reportedly held nearly $15 billion in accounts by July, a 300% rise since 2020. With billions recovered and leaders extradited, can coordinated enforcement finally disrupt Southeast Asia’s crypto scam networks?
Read More: Senators Introduce SAFE Crypto Act to Combat Crypto Scams and Fraud
Cambodia arrested and extradited Chen Zhi to China after investigators linked him to a $12 billion crypto fraud network. Authorities tied the scheme to pig butchering scams, forced cyber labor, and large bitcoin seizures. The case reflects expanding international pressure on Southeast Asia–based crypto crime networks.
