In a significant international law enforcement action, Cambodian authorities have arrested and deported Chen Zhi, the alleged mastermind behind a massive global cryptocurrency fraud network, to China. Chen, the founder and chairman of the Prince Group conglomerate, was detained earlier this week following a joint investigation between Cambodia and China. Cambodian officials confirmed his citizenship was revoked late last year.
The U.S. Department of Justice alleges Chen oversaw forced-labor scam compounds in Cambodia that generated billions of dollars through "pig-butchering" schemes—a type of fraud where scammers build romantic or friendly relationships with victims online before convincing them to invest in fake cryptocurrency platforms. The operation's scale is unprecedented, with U.S. prosecutors filing their largest-ever forfeiture action in October, seeking to seize roughly $15 billion worth of bitcoin (approximately 127,271 BTC) linked to the alleged scheme, along with hundreds of millions in real estate and other assets.
The case has become entangled in a broader geopolitical dispute. In November, China's National Computer Virus Emergency Response Center accused the U.S. government of orchestrating a separate cyber theft involving over 120,000 bitcoin from a Chinese mining pool in 2020. Chinese officials claim some of those coins later surfaced in U.S. custody as part of the case tied to Chen. U.S. authorities maintain the seized bitcoin represents proceeds of fraud and money laundering connected to Chen and Prince Group entities.
Investigators describe Prince Group's operation as an industrialized fraud factory, using forced labor to run sophisticated social engineering scams. Workers, often trafficked from other Southeast Asian countries, were forced to work 12-hour shifts under brutal conditions to message potential victims. The U.K. National Crime Agency has formally designated Prince Group as a transnational criminal entity.
While Chen Zhi's arrest represents a tactical victory for international law enforcement, experts warn the underlying scam infrastructure remains decentralized and adaptive. The case highlights both the traceability of blockchain transactions for forensic investigations and the ongoing challenge of policing crypto-enabled organized crime that exploits vulnerable populations.
