Chen Zhi, a 37-year-old Cambodian businessman, is accused of orchestrating a massive cryptocurrency fraud that stole $14 billion from global victims. Last week, US authorities charged him and confiscated the funds in the largest crypto seizure ever, while international sanctions target his sprawling network.
Chen Zhi’s rise began in China’s Fujian province, where he started with a small internet gaming company before moving to Cambodia in the early 2010s. He entered the booming real estate sector, founding the Prince Group in 2015, which expanded into banking, aviation, and luxury developments. His rapid wealth accumulation coincided with Cambodia’s property boom, fueled by Chinese investment and political connections.
The US Department of Justice alleges that Chen Zhi operated scam compounds in Cambodia, defrauding victims through online schemes that involved cryptocurrency. These operations included sextortion—blackmail using explicit materials—money laundering, and illegal online gambling. Funds were moved through an elaborate web of shell companies and cryptocurrency wallets to hide their origins.
At the core of the scam empire were compounds like Golden Fortune Science and Technology Park, where workers, primarily from China, Vietnam, and Malaysia, were trafficked and forced to run online scams. Investigators report brutal conditions, with escapees facing severe beatings, underscoring the human trafficking and extortion involved.
Chen Zhi maintained a facade of respectability, serving as an official adviser to Cambodia’s interior minister and prime minister, and receiving the royal title ‘Neak Oknha’ for substantial donations. He was lauded as a philanthropist for funding scholarships and COVID-19 relief, but authorities claim his wealth stemmed from criminal enterprises.
In a coordinated response, the US and UK have sanctioned 128 companies and 17 individuals linked to Chen Zhi, freezing assets such as a £12m mansion in London, a £95m office block, properties in New York, private jets, and a Picasso painting. South Korea has frozen $64 million in Prince Bank deposits, and Singapore and Thailand are probing local subsidiaries.
Cambodia’s central bank has issued reassurances to depositors, but the government faces pressure over its tolerance of scam businesses, estimated to comprise a large part of the economy. Chen Zhi has disappeared since the sanctions were announced, and his current whereabouts are unknown, raising questions about accountability and future actions.
This case highlights systemic failures in global financial oversight, as Chen Zhi’s empire operated extensively without raising alarms. Ongoing investigations may spur international efforts to enhance regulations and combat similar transnational crimes.