Alleged scam mastermind Chen Zhi was arrested in Cambodia and extradited to China, marking the spectacular end of one of Asia’s largest criminal networks that authorities say generated $30 million daily at its peak.
This heralds the collapse of a multibillion-dollar empire that exposed how sophisticated criminal organizations have exploited digital finance infrastructure on an unprecedented scale.
The BBC report today (Jan. 8) shows that over the past three months, international authorities have been systematically dismantling what the US Department of Justice labeled one of “Asia’s largest transnational criminal organizations.”
US authorities seized approximately $15 billion worth of Bitcoin linked to Chen — described as one of the largest digital asset forfeitures in US history. The US authorities estimated one month ago that Americans alone lost at least $10 billion to Southeast Asia-based scam operations in 2024, with this network being a significant perpetrator. The ripple effects are already reshaping how regulators worldwide approach cryptocurrency oversight and international financial crime.
Downfall
Chen’s transformation from unknown businessman to alleged criminal mastermind reads like a financial thriller, but the devastation he allegedly caused is painfully real. Born in China’s Fujian province on Dec. 16, 1987, this 37-year-old built one of the largest transnational criminal organizations in Asia.
His influence was breathtaking. Chen had been elevated to senior adviser to the Cambodian government at ministerial rank and served as personal adviser to both former Prime Minister Hun Sen and his successor Hun Manet. His Prince Group employed thousands and positioned itself as one of Cambodia’s biggest conglomerates.
Since 2014, Chen had been accumulating Cambodian citizenship, obtaining a Cypriot passport in 2018 for a minimum investment of $2.5 million, and acquiring Vanuatu citizenship as well. By 2020, he received Cambodia’s highest honor — the prestigious “Neak Oknha” title from the king himself.
Behind this legitimate facade lay something far more sinister. The criminal empire allegedly extended to at least 10 forced labor camps in Cambodia, where workers were coerced into carrying out scams under threat of violence. The sophisticated operation utilized specialized banks and cryptocurrency transfers in Bitcoin and stablecoins, generating astronomical profits through what authorities call “pig butchering” investment scams.
Coordinated devastation
The international response has been swift and devastating for the network. On Oct. 14, OFAC designated Prince Group a Transnational Criminal Organization, subsequently imposing sanctions on the group, Chen, dozens of affiliated companies, and individuals three months ago.
The coordinated global assault on the network revealed its true scope across 12 countries and territories. Hong Kong authorities froze $354 million in assets linked to Chen’s network on Nov. 6, while Singapore police announced seizures totaling over $115 million on Oct. 30. Taiwan’s prosecutors conducted raids on Nov. 4, seizing assets worth more than $1.8 billion, including luxury properties and high-end vehicles like Rolls-Royce, Ferrari, and Lamborghini.
The network’s sophistication became clear as investigators uncovered its reach. The sanctioned parties had reach and spread with linkages extending into Thailand, Taiwan, Singapore, the UK, and The British Virgin Islands.
What makes this case particularly devastating is how deeply embedded the operation was in legitimate business structures. The US Department of Justice revealed that the group had laundered at least $4 billion in illicit proceeds between 2021 and 2025, including funds for North Korea and other transnational criminal organizations.
The extradition of Chen to China represents the final piece of a coordinated international takedown that has been months in the making.
Digital finance
The Chen case’s sophisticated money laundering operation exposed critical vulnerabilities in digital finance infrastructure that regulators are now scrambling to address.
Experts anticipate a continuation of sanctions and regulatory crackdowns over the next six months, with the US expanding its targeting and Southeast Asian countries playing major follow-up roles. The political capital behind these actions is substantial — protecting ordinary citizens losing vast sums to criminals provides robust financial and political support for such crackdowns to intensify.
For fintech companies, the implications are transformative: the era of light-touch regulation is ending. This case has demonstrated how criminal organizations can exploit regulatory gaps and jurisdictional complexities to build massive illegal operations. Cambodia’s intentionally opaque information registries enabled this network to flourish for years.
Companies operating in cryptocurrency and cross-border finance can expect intensified scrutiny, enhanced due diligence requirements, and significantly higher compliance costs as regulators work to prevent the next Chen Zhi.
The US Securities and Exchange Commission launched an enforcement wave targeting three purported cryptocurrency trading platforms and four investment clubs.
