The Golden Clam Shell Goes Dark: Cambodia's Casino Crackdown
Once, a giant golden clam shell illuminated by lurid neon lights adorned the facade of Sihanoukville's Jin Bei casino, filled with playing cards and red dice. Today, that gaudy signage lies covered by sheets, with a Chinese sign reading "under renovation" blocking the doorway. This shuttered casino symbolizes the dramatic rise and fall of Prince Group and its founder Chen Zhi, whose January arrest has exposed what US prosecutors call one of Asia's largest transnational criminal organizations.
Industrial-Scale Scams and Political Connections
US authorities allege Prince Group operated scam compounds in Sihanoukville while presenting itself as a legitimate conglomerate. The October indictment describes "industrial-scale scams" with alleged ties to Cambodia's political elite, raising serious questions about the integrity of government crackdowns on human trafficking, forced labor, and violence. Chen, a Chinese-born businessman who became a Cambodian citizen in 2014, developed connections at the highest levels of government, serving as an adviser to both former Prime Minister Hun Sen and current Prime Minister Hun Manet.
In 2020, Cambodia's king bestowed upon Chen the honorific "Neak Oknha" (similar to nobleman) at Hun Sen's request, a title granted to citizens who donate at least $500,000 to the government. During the pandemic, Hun Sen wrote to Chen expressing "deepest appreciation" after the tycoon donated $3 million for vaccines, according to state-aligned outlet Khmer Times.
The Makings of a Criminal Empire
Chen, 38, reportedly moved from China's Fujian province to Cambodia about 15 years ago, founding Prince Group in 2015. He invested heavily in Sihanoukville real estate as the once-sleepy coastal town transformed into a city of casinos and skyscrapers fueled by Chinese investment. When the real estate boom crashed in 2019 due to gambling bans and pandemic effects, Prince Group continued expanding, unveiling luxury apartments, retail complexes, and commencing work on a $16 billion eco-city called the Bay of Lights.
Throughout this period, prosecutors allege Chen and his associates lived extravagantly, purchasing designer watches, yachts, private jets, rare artwork including a Picasso painting, and multiple properties in London's high-end areas (since seized by British authorities). US authorities claim these luxuries were funded not by legitimate business but by transnational crime.
Systematic Co-option and International Fallout
Jason Tower, senior expert at the Global Initiative Against Transnational Organized Crime, claims Chen exploited Cambodia's political climate better than anyone. "Chen Zhi and his Prince Group seem to have systematically co-opted the entire system," Tower alleged, describing Chen as both a mastermind in setting up front companies and building illicit business partnerships.
The group's philanthropic arm, Prince Foundation, helped create a benevolent image through donations to flood victims and scholarship programs. When Cambodia hosted Southeast Asian regional meetings, world leaders received luxury watches from a horology school established by Prince Group. This wealth helped enhance Cambodia's international image until it became a liability.
International Pressure and Massive Seizures
Sanctioned by both Washington and London in October, Chen faces allegations that have triggered massive international asset seizures. The US Justice Department seized $15 billion in bitcoin linked to Chen—the largest forfeiture in its history. Singapore has seized S$500 million ($393.25 million) in assets and illicit funds allegedly relating to Prince Group, while Taiwan has seized more than T$5.5 billion ($172.4 million).
Cambodia extradited Chen to China in January, which Jacob Sims, visiting fellow at Harvard University's Asia Center, suggests resulted from intensifying international pressure. "Beijing likely did not want to see Prince's dirty laundry aired in US courts," Sims said.
Government Response and Unanswered Questions
The Cambodian government revoked Chen's citizenship earlier this year, claiming it had been "irregularly obtained." Prime Minister Hun Manet told AFP in February that the government had been unaware of Chen's illegal activities, describing him as "just a businessman, contributing to the economy." He denied government benefits from the scam industry, saying "most of the proceeds do not go into the government of Cambodia."
Hun Sen has promised tough action, warning that Cambodia is "not a safe haven, but a hell for criminals" according to Khmer Times. The government reported in mid-February that since July 2025, 200 locations have been shuttered, with 173 senior crime figures arrested and 11,000 workers deported.
Human Cost and Ongoing Operations
Chen's arrest sent shockwaves through the cyber scam industry, leading to thousands of foreign workers being released from compounds in recent weeks. Many, including suspected human trafficking victims, report being subjected to violence and now lack money or documents to return home, forced to sleep on streets and outside embassies.
Despite government claims, observers question whether authorities will truly stamp out an industry that, according to US Institute of Peace estimates, accounts for almost half of Cambodia's formal GDP. Amnesty International reported in January that of 35 interviewees who escaped or were released from compounds, all reported no police or military presence during their departure.
A Ugandan national who asked not to be named described similar circumstances: "Our boss came and said: pick your phones don't take anything else." He reported no police presence when his compound emptied, with workers told to follow Chinese bosses instead.
The Future of Scam Operations
John Wojcik, senior threat researcher at Infoblox, estimates this is "very likely a $100 billion industry annually in the Southeast Asia region" that "dwarfs the synthetic drug trade." He warns that even if Prince Group in its current form ends, "there is ample opportunity to pick up the remaining market share" in what he describes as "a game of whack-a-mole."
The Guardian visited multiple apparently shut-down compounds in Sihanoukville but witnessed several sites operating normally in Poipet, a casino city near the Thai border. As one tuk-tuk driver noted: "Even if it's illegal, for local people, it's business."
Prince Group maintains its innocence, stating it "categorically rejects that it or its founder, Chen Zhi, has engaged in any unlawful activity" and calling recent allegations "baseless." The group claims to have "operated lawfully" throughout Asia for more than a decade and contributed to regional development.
Beyond Chen, no other senior figures from Prince Group have been detained, and no government officials have faced investigation despite frequent allegations of state complicity. As Cambodia promises to eliminate scamming by April, the world watches whether this represents genuine reform or merely the fall of one criminal empire making way for others.
