Cambodia Extradites Alleged Cryptocurrency Scam Kingpin Chen Zhi to China
PHNOM PENH, Cambodia — Cambodian authorities have arrested and extradited Chen Zhi, the founder of Prince Holding Group, to China, where he faces charges related to a massive cryptocurrency scam that drew international scrutiny, including accusations from the United States of involving forced labor camps.
The handover occurred recently, marking a significant development in Cambodia's ongoing efforts to dismantle cybercrime operations within its borders. Chen, a Chinese national accused of orchestrating one of the largest crypto frauds in recent years, was transferred to Chinese custody following his arrest in Cambodia, according to statements from Cambodian officials reported by Channel News Asia.
Details of the scam trace back to operations allegedly run under Chen's Prince Holding Group, a conglomerate with extensive real estate and financial interests in Cambodia. The U.S. Department of Justice unsealed an indictment against Chen in October 2024, accusing him of masterminding a scheme that defrauded investors of over $1.7 billion through a cryptocurrency platform known as Huione Guarantee. Prosecutors alleged that the operation lured primarily Chinese investors with promises of high returns, only to collapse as a classic Ponzi scheme. Victims were reportedly coerced into labor in scam compounds if unable to repay fabricated debts, with facilities established in Cambodia's coastal Sihanoukville region, long notorious as a hub for online fraud.
Cambodia's Ministry of Interior confirmed the extradition, stating it was conducted in cooperation with Chinese law enforcement. This action aligns with bilateral agreements between Phnom Penh and Beijing to combat cross-border cybercrime. Since 2024, Cambodia has intensified crackdowns on scam centers, raiding compounds and extraditing thousands of foreign nationals, predominantly Chinese, amid pressure from regional partners like ASEAN and international bodies.
Background on Cambodia's Cybercrime Crackdown
Cambodia emerged as a major center for "pig butchering" scams—sophisticated frauds where scammers build romantic relationships online to extract funds—in the early 2020s. Sihanoukville, once a sleepy beach town, transformed into a neon-lit enclave of high-rise casinos and scam factories fueled by Chinese investment. By 2022, human rights groups estimated tens of thousands were trafficked into forced labor in these operations, generating billions in illicit revenue.
The Cambodian government, under Prime Minister Hun Manet—who assumed office in 2023—has pledged to eradicate these networks. In late 2024, Phnom Penh announced the shutdown of over 120 scam compounds, rescuing more than 5,000 victims and arresting key figures. China, the primary source of both perpetrators and victims, has repatriated over 40,000 suspects from Southeast Asia since 2023 through joint operations. Chen's case underscores this momentum, as his Prince Group projects, including luxury developments in Sihanoukville and Koh Kong, were allegedly fronts for laundering scam proceeds.
U.S. authorities had placed a $1 million bounty on Chen in 2024, describing him as a fugitive who leveraged Cambodia's lax regulations to evade capture. The indictment detailed how Huione Guarantee operated as a fake loan guarantee service tied to cryptocurrency trading, promising 20% monthly returns. When the scheme unraveled, investors lost access to funds, and some were allegedly flown to Cambodia for "re-education" in labor camps involving beatings and confinement.
International Ramifications and Ongoing Efforts
The extradition to China, rather than the U.S., reflects geopolitical dynamics. While Washington seeks Chen's prosecution under its wire fraud statutes, Beijing's claims take precedence given his nationality and Cambodia's closer ties with China. Cambodian officials emphasized the operation's compliance with legal extradition protocols, avoiding direct comment on the merits of foreign charges.
This event occurs amid broader regional trends. Thailand, Myanmar, and Laos have similarly targeted scam hubs, with the Mekong region dismantling operations worth an estimated $30 billion annually. The United Nations Office on Drugs and Crime reported in 2025 that Southeast Asia accounted for 80% of global investment fraud complaints.
Experts note that while arrests like Chen's signal progress, underground networks persist, often relocating to more remote areas. Cambodia's tourism-dependent economy, particularly in Sihanoukville, continues to recover from the scam era's stigma, with authorities promoting legitimate investments.
As Chen faces trial in China—where penalties for telecom fraud can include life imprisonment—the case highlights vulnerabilities in the cryptocurrency sector and the challenges of international law enforcement. Cambodian and Chinese officials have vowed continued collaboration, potentially paving the way for further high-profile extraditions.
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