Cambodia Extradites Chen Zhi to China in Cryptocurrency Scam

Source: CryptoTale Original Title: Cambodia Extradites Chen Zhi to China in Cryptocurrency Scam Original Link: Cambodian authorities extradited billionaire businessman Chen Zhi to China on Jan. 7 after a joint transnational investigation. The handover followed his Jan. 6 arrest in Cambodia with two associates linked to a vast cryptocurrency fraud. Officials say the case involved forced labor “scam factories,” cross-border laundering, and billions in illicit crypto proceeds.

Arrest, Extradition, and Citizenship Reversal

Cambodia’s Interior Ministry said police arrested Chen Zhi on Jan. 6 alongside Xu Ji Liang and Shao Ji Hui. Authorities then extradited all three to the People’s Republic of China on Jan. 7. Notably, the ministry did not disclose the detention site before the transfer.

The extradition followed a royal decree revoking Chen’s Cambodian citizenship in late 2025. Chen had renounced Chinese citizenship in 2014 to become a Cambodian national. However, the revocation removed legal barriers to his handover.

China’s state media confirmed custody after the transfer. State outlets described Chen as the head of a major cross-border gambling and fraud syndicate. Officials said police imposed coercive measures under Chinese law.

Authorities added that public security organs would issue arrest warrants for additional suspects. Officials warned remaining members to surrender for potential leniency. However, authorities did not specify timelines or locations for future actions.

Allegations, Seizures and International Sanctions

U.S. authorities charged the 37-year-old in October with fraud and money laundering tied to internet scams. Prosecutors alleged the operation stole billions in cryptocurrency from global victims. Indictments also cite forced labor compounds in Cambodia.

Those compounds allegedly housed trafficked workers compelled to run online scams. Victims were contacted over time and pushed into fake crypto investments. Notably, investigators often call the method “pig butchering” scams.

U.S. officials later seized roughly $15 billion in bitcoin allegedly linked to Chen. Law enforcement called the action one of history’s largest financial fraud takedowns. The seizure remains under U.S. government control.

Meanwhile, the United Kingdom imposed sanctions on Prince Group, Chen’s business empire. Cambodian regulators also suspended Prince Bank, a Prince Group subsidiary. The National Bank of Cambodia placed the lender into liquidation while allowing withdrawals and loan repayments.

Prince Group has previously denied involvement in scams. Its website lists property, financial, and consumer services among its businesses. However, authorities in multiple countries continue to scrutinize the group’s activities.

Regional Impact and Ongoing Investigations

The extradition shows the scale of organized online fraud across Southeast Asia. The United Nations estimates hundreds of thousands were trafficked into scam operations regionwide. Many were lured by fake job offers and then detained.

Cambodia, Myanmar, and Laos host guarded compounds tied to these schemes. Workers often face threats, long shifts, and violence. Notably, many victims and targets come from China. Chinese authorities had already investigated Prince Group before the extradition. Court cases allege online fraud and illegal gambling operations.

Beijing authorities formed a task force to examine the group’s Cambodia base. Despite Chen’s past ties to Cambodia’s elite, pressure mounted after Western sanctions. Cambodian officials earlier urged foreign governments to present sufficient evidence. However, the citizenship revocation changed the legal landscape.

U.S. and Chinese coordination remains uncertain after the transfer. The United States holds seized bitcoin linked to the case. Officials have not announced any joint prosecutorial framework.

Cambodian authorities said little beyond confirming the extradition. They did not reveal Chen’s detention location or transit details. However, state media framed the move as a law enforcement milestone.

The case also intersects with economic concerns inside Cambodia. Some estimates suggest scam-linked businesses represent a large share of activity. Authorities have not confirmed those figures. Chen’s whereabouts remained unclear after his U.S. indictment. His arrest resolved months of uncertainty. Investigators now focus on dismantling remaining networks.

The transfer of Chen Zhi consolidates actions by Cambodia, China, the United States, and the United Kingdom. Each government has taken separate enforcement steps tied to the same allegations. They outline a coordinated response to transnational crypto fraud.