Cambodia has extradited a billionaire businessman to China following allegations that he orchestrated a large-scale cryptocurrency scam tied to human trafficking and forced labour, an operation that authorities say defrauded victims worldwide.
Cambodian officials said Chen Zhi was among three Chinese nationals arrested on 6 January after a joint investigation into transnational crime that lasted several months. The others were identified as Xu Ji Liang and Shao Ji Hui.
US And UK Actions Against Chen Zhi
The 37-year-old, who was born in south-east China, was charged by US authorities last October with fraud and money laundering. Prosecutors alleged he ran internet-based scams from Cambodia that stole billions of dollars in cryptocurrency.
The US Treasury Department said it seized about $14 billion (£10.4 billion) worth of bitcoin allegedly linked to Chen Zhi. US prosecutors described the case as one of the largest financial enforcement actions ever undertaken and the biggest bitcoin seizure on record.
The UK also imposed sanctions on Chen Zhi’s global business network, Prince Group. The BBC contacted Prince Group for comment at the time. The Cambodia-based conglomerate has previously denied involvement in scam activity and says its operations include property development, financial services, and consumer businesses.
Arrest And Extradition To China
Following his US indictment, Chen Zhi’s location was unknown for several months. On Wednesday, Cambodia’s interior ministry said authorities had arrested the three men and extradited them to the People’s Republic of China. The statement did not disclose where Chen Zhi had been detained prior to extradition.
Cambodian officials added that Chen Zhi’s Cambodian nationality had been revoked by royal decree last month. He had renounced his Chinese citizenship to become a Cambodian national in 2014.
Forced Labour And Scam Operations
The United Nations estimates that hundreds of thousands of people have been trafficked to South East Asia, many of them to Cambodia, after being promised legitimate employment. Instead, they are forced to work in online scam operations.
Victims are often held against their will and compelled to defraud people online under threats of punishment or torture. Many of those trafficked are Chinese nationals, and a significant number of scam targets are based in China.
Chinese Investigations Into Prince Group
Chinese authorities have been investigating Prince Group since at least 2020, according to court records. The company has been accused in multiple cases of operating online fraud schemes.
The Beijing Municipal Public Security Bureau set up a task force to examine the group, describing it as a major transnational online gambling syndicate operating from Cambodia.
Political Links And Economic Impact
Cambodia’s ruling elite have maintained close ties with Chen Zhi for years. Since the US and UK sanctions were announced, the Cambodian government has largely remained silent, apart from calling on foreign authorities to ensure they had sufficient evidence to support their claims.
Some estimates suggest scam-related businesses could account for as much as half of Cambodia’s overall economy.
Journalist Jack Adamovic Davies, who has investigated Chen Zhi, previously told the BBC that the scale of Chen’s alleged activities set him apart from others involved in similar schemes. He said it was striking that Prince Group had built a global presence without triggering earlier scrutiny, given the criminal allegations it now faces.
Featured image credits: Pickpik
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