In a significant move in the world of cryptocurrency crime, Chen Zhi, a 37-year-old billionaire and chairman of the Prince Group, was arrested in Cambodia on January 6, 2026. His arrest marks a culmination of a months-long investigation conducted collaboratively by Cambodian and Chinese authorities, leading to his prompt deportation back to China at the request of Beijing.
Chen Zhi stands accused of orchestrating one of the largest cryptocurrency fraud and human trafficking operations in recent history, specifically utilizing what are notoriously referred to as “pig-butchering” scams, a form of fraud that targets victims with false promises of lucrative investment returns.
U.S. prosecutors have labeled Chen a central figure in these operations, with allegations that his schemes generated billions through forced labor and romance scams conducted from various compounds across Cambodia. This unlawful enterprise has drawn international attention, particularly following the U.S. Department of Justice’s filing in October 2025 for its largest forfeiture action in history, aimed at seizing approximately $15 billion worth of bitcoin purportedly tied to Chen’s operations.
FBI Director Kash Patel outlined the significance of the seizure, stating it represents “one of the largest financial fraud takedowns in history.” The jurisdiction over the seized bitcoin has become a point of contention between the U.S. and China, each claiming ownership.
Alongside Chen, two other Chinese nationals, Xu Ji Liang and Shao Ji Hui, were also arrested and sent back to China. The Cambodian information ministry announced these arrests without disclosing the exact location where Chen was apprehended, indicating the sensitivity of the operation.
Chen’s controversial past includes the revocation of his Cambodian citizenship in December 2025, a royal decree effectively setting the stage for his deportation. Prior to his citizenship being rescinded, both the U.K. and U.S. governments had sanctioned Chen and his global business empire, with Prince Bank, a subsidiary of Prince Group, having its operations suspended.
The reach of Chen’s operations extends far beyond simple scams; the United Nations estimates that hundreds of thousands of individuals have fallen victim to forced labor scams across Southeast Asia, many lured by promises of legitimate employment. Once in Cambodia, however, they faced living nightmares, coerced into running online scam operations under severe threats.
Reports indicate that scams of this nature may constitute a substantial portion of Cambodia’s economy, a disturbing statistic highlighting the pervasive nature of such illicit activities. The Cambodian government, which had maintained a close relationship with Chen, has been relatively quiet since international sanctions were imposed, only urging that any evidence against Chen be adequately substantiated.
The case against Chen Zhi is emblematic of larger trends in transnational organized crime, with U.S. authorities alleging that he has transformed Prince Group into a criminal organization with a vast international presence. While he faces numerous charges, including fraud and money laundering in the United States, his legal fate remains uncertain following this dramatic arrest.
As the investigation continues to unfold, the ramifications of Chen’s arrest may reverberate throughout the cryptocurrency world, raising questions about the enforcement of international laws against digital fraud and the ever-evolving landscape of online scams.
