Cambodia Extradites Alleged Mastermind of Cryptocurrency Scam to China

Cambodia Takes Action Against Transnational Crime

Cambodia has announced the extradition of a billionaire businessman to China, who is accused of orchestrating an extensive cryptocurrency scam that involved trafficking workers into forced labor camps to defraud victims worldwide. Chen Zhi, along with two other Chinese nationals, was arrested on January 6 following a months-long joint investigation into transnational crimes.

Authorities in the United States have accused the 37-year-old Chen, originally from southeastern China, of operating online scams from Cambodia that allegedly stole billions in cryptocurrency. The U.S. Treasury Department has seized approximately $14 billion in bitcoin that it claims belonged to him. Additionally, the United Kingdom has imposed sanctions on his business empire, the Prince Group.

Chen became a Cambodian citizen in 2014, renouncing his Chinese nationality. The latest statement from Cambodian authorities did not provide details about where he was held, but his Cambodian nationality was recently revoked by royal decree. This has led to confusion regarding potential places of residence.

ONLINE SCAMS ARE A GLOBAL ISSUE. The UN estimates that hundreds of thousands of individuals have been trafficked in Southeast Asia, lured by promises of legitimate employment but ultimately forced to partake in online scams under severe threats. Most of those affected are Chinese, who are targeted to deceive others within China.

The Prince Group has been under investigation by Chinese authorities since 2020, accused of involvement in online fraud schemes. This situation has heightened concerns about the scale of its operations and the support it receives from Cambodia’s governmental elite.