Chen Zhi Extradited to China Over $14B Crypto Scam

A Global Financial Crackdown

The U.S. had previously charged Chen in October 2025. Prosecutors linked him to internet scams operated out of Cambodia, which allegedly defrauded victims globally of billions in cryptocurrency.

In one of the largest crypto seizures ever, the U.S. Treasury confiscated over 127,000 bitcoin—worth roughly $14–15 billion—from wallets tied to Chen’s network. The U.K. followed by sanctioning his conglomerate, Prince Group, calling it a transnational criminal organization.

Despite these allegations, Prince Group has denied involvement in fraud. The company, active in real estate, finance, and hospitality, was once seen as a legitimate force in Cambodia’s growing economy.

Crypto Fraud, Forced Labor, and Online Scam Centers

Authorities believe Chen Zhi orchestrated “pig butchering” scams—schemes that build trust with victims before draining their funds through fake crypto trading platforms.

Many of these operations also involved forced labor. Trafficked workers, lured by job offers, were held in scam compounds across Southeast Asia. Victims were forced to defraud strangers online under threats of violence or torture. Many of those trafficked were Chinese nationals.

The UN estimates that hundreds of thousands of people have been trapped in these scam farms. Cambodia, Myanmar, and Laos have become key hotspots for such activities.

Prince Group Under Fire

Chinese authorities had been quietly investigating Prince Group since at least 2020. The Beijing Public Security Bureau identified the company as a major transnational gambling and fraud syndicate.

Despite growing scrutiny, Chen Zhi maintained strong ties with Cambodia’s ruling elite. He became a Cambodian citizen in 2014 but lost that status via royal decree in December 2025, shortly before his arrest and extradition.

By some estimates, scam operations may make up nearly half of Cambodia’s economy. The Prince Group’s rise and fall highlight how deep these networks run and how little resistance they face in some jurisdictions.

Source: X (Jacob In Cambodia)

What Happens Next

Chinese prosecutors have not yet announced formal charges. However, legal experts say the penalties could be severe. In similar past cases, Chinese courts have imposed life imprisonment or even the death penalty, particularly when violence or human trafficking is involved.

China is expected to coordinate with U.S. authorities over asset forfeiture. The billions in seized bitcoin may eventually go toward compensating victims, pending court approval.

Meanwhile, international regulators continue working with crypto firms to disrupt these networks. Exchanges like Binance and Coinbase, along with analytics firms, have helped track and block illicit funds tied to such scams.

The case against Chen Zhi stands as a turning point in the global fight against crypto-enabled crime. But with billions still flowing through shell companies and shady platforms, the broader war is far from over.