Cambodia Extradites Chen Zhi in Major Crypto Fraud Case

• Chen Zhi was extradited from Cambodia to China after his citizenship was revoked, clearing legal barriers to transfer.

• Authorities link Chen to cross-border crypto fraud, forced labor scam compounds, and large-scale money laundering.

• U.S. prosecutors seized about $15B in bitcoin tied to the case, while investigations continue across Southeast Asia.

Cambodian authorities extradited billionaire businessman Chen Zhi to China on Jan. 7 following a joint cross-border investigation. Police arrested Chen in Cambodia on Jan. 6 alongside Xu Ji Liang and Shao Ji Hui. Officials said the transfer followed allegations of cryptocurrency fraud, forced labor operations, and large-scale money laundering across several countries.

Arrest, Citizenship Revocation and Transfer to China

Cambodia’s Interior Ministry confirmed police detained Chen, Xu Ji Liang, and Shao Ji Hui on Jan. 6. However, authorities did not disclose the arrest location before extradition. The following day, officials transferred all three suspects to the People’s Republic of China.

The handover followed a royal decree issued in late 2025 revoking Chen’s Cambodian citizenship. Chen had renounced Chinese citizenship in 2014 to become a Cambodian national. Notably, the revocation removed legal obstacles to extradition under Cambodian law.

China’s state broadcaster CCTV confirmed Chen entered Chinese custody after the transfer. According to CCTV, authorities identified Chen as a leader of a cross-border gambling and fraud network. Public security officials imposed coercive measures under Chinese criminal procedure.

Fraud Allegations and International Enforcement Actions

U.S. prosecutors charged the 37-year-old in October with fraud and money laundering linked to online scams. According to the BBC, indictments described forced labor compounds operating in Cambodia. Workers were allegedly trafficked and compelled to run online investment scams.

Investigators said victims were drawn into fake cryptocurrency investments over extended periods. Law enforcement commonly refers to the scheme as “pig butchering.” U.S. authorities later seized about $15 billion in bitcoin allegedly connected to Chen.

FBI Director Kash Patel described the seizure as one of the largest financial fraud actions on record. The cryptocurrency remains under U.S. government control. Separately, the United Kingdom sanctioned Prince Group, Chen’s business conglomerate.

Regional Scrutiny and Ongoing Investigations

Cambodian regulators also suspended Prince Bank, a Prince Group subsidiary. The National Bank of Cambodia placed the lender into liquidation while allowing withdrawals and repayments. Prince Group has denied involvement in scam operations.

The United Nations estimates hundreds of thousands have been trafficked into scam operations across Southeast Asia. Cambodia, Myanmar, and Laos host guarded compounds linked to these schemes. Many victims and targets reportedly come from China.

Chinese authorities had previously investigated Prince Group activities in Cambodia. Beijing’s Municipal Public Security Bureau formed a task force focused on the group’s regional operations. Cambodian officials confirmed the extradition but released no transit details.