BANGKOK – U.S. prosecutors have unsealed an indictment against Chen Zhi, the 37-year-old founder and chair of Cambodia’s Prince Group Holdings, accusing him of running a global fraud network built on trafficking and forced labour.
The case, filed in federal court in Brooklyn, describes Prince Group as a corporate front for one of Asia’s biggest transnational crime operations, according to the U.S. Department of Justice.
Chen, a dual UK and Cambodian national born in China’s Fujian province, also known as Vincent, is charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. Each count carries a maximum penalty of 20 years in prison.
Prosecutors say he oversaw at least 10 fortified scam centres across Cambodia. Recruits were allegedly trafficked with fake job offers in tech or customer support, then forced to run “pig-butchering” scams.
The schemes targeted victims worldwide, including Americans, by building fake online relationships and steering them into bogus crypto investments. The losses were enormous. The FBI’s Internet Crime Complaint Center said U.S. victims reported more than $5.8 billion in crypto fraud last year.
Court papers depict grim conditions inside the compounds, which were surrounded by walls, barbed wire, and armed guards. Hundreds of migrants, mostly from China, lived in crowded dorms fitted with racks of phones and automated call hubs that managed tens of thousands of fake social media accounts.
Prince Group’s Corporate Image
Workers faced beatings, isolation, and threats of death for poor performance or escape attempts. The filings include images of injured detainees and visible lash marks. FBI Assistant Director in Charge James E. Raia said Chen built an enterprise on human suffering, describing a network that mixed fraud, trafficking, and laundering at scale.
Prince Group’s corporate image rested on Prince Bank Plc, a Phnom Penh commercial lender launched in 2015. The bank, which has more than $1 billion in assets and over 100 branches, promoted digital products and partnerships with global fintech firms.
It drew deposits from both locals and expatriates. U.S. authorities now allege the bank acted as a core channel for laundering scam proceeds, blending dirty funds with legitimate revenue through a web of more than 100 shell firms around the world.
A U.S. official involved in the case, speaking on background, said the bank functioned as a laundering engine. OFAC has sanctioned the lender, freezing dollar clearing and barring U.S. persons from dealings with it. Cambodian regulators have not commented. The measures could strain a banking sector where foreign capital has long supported growth.
Chen Served as an Adviser to Hun Sen
Chen’s rise tracks Cambodia’s China-fuelled building boom. He arrived in Phnom Penh in the early 2010s and set up Prince Group as construction and casino projects surged, especially in Sihanoukville. He amassed wealth and influence.
In 2020, King Norodom Sihamoni granted him the neak oknha title, an honour for major state donors. Chen also served as an unpaid adviser to former Prime Minister Hun Sen, with a rank equal to a minister. Royal decrees show he kept the advisory role under Prime Minister Hun Manet, who took office in August 2023.
Prosecutors say these links were strategic. Chen allegedly authorized bribes to officials to protect his operations, embedding the scam network within Cambodia’s ruling apparatus. J. Daniel Sims, a transnational crime scholar at Harvard University’s Asia Center, said Chen sits at the core of a criminal economy tied to the state.
Hun Sen, now Senate president and a dominant figure in the CPP, has faced similar claims over scam compounds. Amnesty International has accused authorities of complicity by failing to act. The Cambodian government and Prince Group did not respond to Reuters requests for comment. Prince’s website states it follows global business standards.
Justice Department Seized Bitcoin
The U.S. response is sweeping. The Justice Department said it has seized 127,271 Bitcoin, worth about $15 billion, from 25 self-hosted wallets linked to Chen. It is the largest cryptocurrency seizure on record, bigger than the Silk Road case.
FBI blockchain analysis traced proceeds from scams into ventures that included bitcoin mining in Laos via Warp Data Technology and luxury developments in Palau. Deputy Attorney General Lisa Monaco said the action cuts off financial lifelines for such networks.
Allied sanctions have broadened the net. Working with the UK Foreign, Commonwealth and Development Office, OFAC and FinCEN, designated 146 targets tied to Prince.
The list includes Chen’s associate Qiu Wei Ren, who holds Cambodian, Cypriot, and Hong Kong passports, as well as companies such as Jin Bei Group, which owns casinos in Sihanoukville, and Golden Fortune Resorts World, a compound near Phnom Penh.
Assets Seized in the UK
In London, authorities froze 19 properties linked to the network. These include a $133 million office tower in the City, a $16 million house in Hampstead, and 17 luxury flats worth more than $300 million in total.
Seized assets also include private jets, yachts, Rolex watches, other high-end goods, and a Picasso purchased in New York for millions. A UK government spokesperson said the aim is to shut Chen and his associates out of Western financial systems.
The crackdown reflects a tougher global stance on scam operations across Southeast Asia, which the U.N. estimates generate $64 billion each year, more than Cambodia’s GDP. Last year, U.S. sanctions hit CPP powerbroker Ly Yong Phat over trafficking claims. Experts say progress will be slow. Sims argued the actions shift risk for banks and investors, but without cooperation from Phnom Penh, the networks may shift to Laos or Myanmar.
Victims in the United States have little immediate relief. In New York, one Brooklyn crew allegedly cheated more than 250 people out of millions. An American retiree cited in the case said they lost their life savings to a stranger on WeChat. Chen’s location is unknown. The FBI is seeking information at PrinceGroupTips@fbi.gov.
