Cambodia has extradited a powerful, sanctioned business magnate to China, following his arrest over allegations of operating a vast international scam network that defrauded victims of billions of dollars.
The Arrest and Extradition of a Tycoon
Chen Zhi, the 38-year-old chairman of the Cambodia-based Prince Holding Group, was detained alongside two Chinese nationals, Xu Ji Liang and Shao Ji Hui. The arrests were executed at Beijing's request, and the trio were sent to China on Tuesday, 6 January 2026. Prior to his extradition, Mr Chen's Cambodian citizenship was revoked by royal decree in December.
Publicly, his conglomerate is known for luxury property, finance, and consumer services in Cambodia. However, Western officials allege it served as a front for a transnational criminal enterprise built on online fraud and the exploitation of trafficked workers.
Sanctions and Multi-Billion Dollar Allegations
In October 2025, both the US Treasury Department and the UK Foreign Office imposed sanctions on Chen Zhi and his companies. They accused him of overseeing scam centres that targeted victims worldwide with fake cryptocurrency and financial investment schemes, often initiated through online 'romance' tactics.
US prosecutors in New York have charged him with wire fraud and money laundering conspiracies. Investigators claim to have seized nearly $14bn (£10.4bn) worth of bitcoin linked to his activities, marking the largest cryptocurrency forfeiture in history. The syndicate is accused of defrauding at least 250 Americans, with one individual losing $400,000.
Further allegations include authorising violence against workers, bribing officials, and laundering profits through side businesses like cryptocurrency mining and online gambling. The network was said to be earning tens of millions of dollars daily at its peak. Prince Holding Group has repeatedly denied any wrongdoing.
Broader Implications for Cybercrime and Diplomacy
The extradition significantly complicates the prospect of a US trial for Chen Zhi, as Washington and Beijing have no extradition treaty. Analyst Jacob Daniel Sims suggested Cambodia's move was the "path of least resistance," defusing Western scrutiny while aligning with Beijing's likely preference to handle the case domestically.
The case underscores the severe scale of cybercrime in Southeast Asia, where scam compounds flourish in regions with weak law enforcement, such as Cambodia and Myanmar. A UN report indicated that at least 100,000 people in Cambodia and 120,000 in Myanmar are trapped in forced labour conditions within these operations. Global scam losses for 2023 were estimated between $18bn and $37bn.
Beyond the cryptocurrency seized by the US, British authorities have frozen Chen Zhi's UK assets, including a London mansion and office building. Additional linked assets were seized or frozen in Singapore, Taiwan, and Hong Kong.
