Prince Group founder Chen Zhi is repatriated to China; the $15 billion Bitcoin scam case enters a new phase

Cambodian authorities have deported the founder of the Prince Group, Chen Zhi, who was suspected of global crypto scams and money laundering, and handed him over to China. The core of this case lies in the U.S. Department of Justice previously seizing 127,000 bitcoins related to his network, worth approximately $15 billion, setting a record for cryptocurrency confiscation.

As the main suspect falls into China’s judicial system, this complex case involving “pig-butchering” scams, cross-border money laundering, and forced labor enters a critical trial phase. The outcome of the trial and the disposition of massive assets will have a profound impact on global crypto scam governance and international judicial cooperation. The case also highlights how global regulators are strengthening collaboration to combat transnational criminal networks utilizing cryptocurrencies.

Cambodia’s “Pledge of Allegiance”: A Carefully Planned Transnational Repatriation Operation

In early January 2026, in Phnom Penh, Cambodia, a joint operation conducted after months of investigation by Cambodian and Chinese police quietly took down the suspects. Chen Zhi, founder of the Prince Group, and his two assistants, Xu Jiliang and Shao Jihui, were arrested. This operation was not accidental but the inevitable result of long-term pressure from multiple parties and international cooperation. According to statements from Cambodia’s “Chinese Business Daily” and the Ministry of Interior, the arrest was based on a bilateral cooperation agreement aimed at combating transnational crime. An even more critical prelude was laid in December 2025—Cambodia’s royal government issued a decree officially revoking Chen Zhi’s Cambodian citizenship. This move was widely seen as clearing the final legal obstacle for his repatriation and indicated that, under intense international pressure, the Cambodian government chose to align its law enforcement stance with China, the US, and other countries.

Chen Zhi’s operations in Cambodia are deeply rooted. The 38-year-old established the Prince Group there in 2015, with business interests spanning real estate, finance, and hospitality. Brands like Prince Bank and Prince Real Estate are ubiquitous on Phnom Penh streets, once regarded as legitimate local business giants. However, investigations by US and UK authorities reveal that this vast business empire is merely a glamorous façade for a criminal network engaged in online scams, money laundering, and even forced labor. Although the Prince Group has consistently denied all allegations, the international evidence chain is tightening. Local insiders reveal that after Chen Zhi’s arrest, his “legitimate” businesses continued to operate, but the helm of this commercial vessel has shifted, and its future remains uncertain.

The immediate trigger for this repatriation was a shocking asset seizure operation launched by the U.S. Department of Justice in October 2025. U.S. federal prosecutors accused Chen Zhi and his network of operating a global crypto scam system and sought to confiscate over 127,000 bitcoins. At the time, the assets were valued at up to $15 billion, making it the largest crypto seizure related to online scams to date. The U.S. Treasury and the UK government jointly designated the Prince Group as a transnational criminal organization and sanctioned dozens of crypto wallets containing hundreds of millions of dollars in Bitcoin. This “cutting off the head” financial strike caused Chen Zhi’s asset empire to shake violently, forcing Cambodia, his sanctuary, to reconsider its stance.

Unveiling the Largest Crypto Scam in History: Where Did $15 Billion in Bitcoin Come From?

The core method behind this shocking case is the “pig-butchering” scam that has ravaged Southeast Asia and globally in recent years. Unlike traditional scams, “pig-butchering” is more patient and deceptive. Criminals first establish long-term trust with victims via social networks (“raising pigs”), then lure victims into fake crypto trading platforms they control for investment. After victims pour large sums of money, the platform suddenly shuts down, and the funds vanish (“slaughtering pigs”). Chen Zhi’s team industrialized and scaled this model, registering over 700,000 scam accounts, with staff reportedly numbering between 5,000 and 10,000 within their operation.

The illicit funds did not go directly into criminals’ pockets but underwent a highly complex money laundering process, which is the key aspect involving cryptocurrencies in this case. Investigators point out that the stolen funds were first diverted through over 100 shell companies, then flowed into multiple crypto exchanges for obfuscation. Some funds were even invested in crypto mining operations, attempting to convert illegal proceeds into seemingly legitimate mining income. Ultimately, after multiple layers of circulation, the funds were consolidated into private Bitcoin wallets controlled by Chen Zhi and his core team. The pseudonymous nature of Bitcoin initially facilitated this laundering, but the transparency of the blockchain left immutable traces, providing crucial evidence for subsequent investigations.

Key Data Summary of Chen Zhi Case

• Confiscated Bitcoin Quantity: 127,000 BTC
• Estimated Value at Seizure: approximately $150 billion
• Associated Scam Accounts: over 700,000
• Involved Staff: 5,000 – 10,000 people
• Assets Frozen in Singapore: about 1.5 billion SGD (roughly 8 billion RMB), including luxury cars and real estate
• 2024 US Scam Losses: $3.6 billion

Behind these cold numbers are countless shattered dreams of victims’ families. U.S. data shows that in 2024 alone, losses from such “pig-butchering” scams reached $3.6 billion, with the scale still growing. The downfall of Chen Zhi’s network undoubtedly cuts off one of the largest and most vicious “slaughterhouses.” This case also reveals a stark reality: due to their global circulation and certain anonymity, cryptocurrencies are increasingly exploited by professional criminal organizations for large-scale money laundering, posing a new challenge to global anti-money laundering systems.

China’s Judicial Takeover: What Sentence Will the Cross-Border Telecom Fraud Mastermind Face?

With Chen Zhi being extradited to China, this unprecedented transnational crypto crime case officially enters China’s judicial process, marking the most suspenseful chapter. According to China’s criminal law “personal jurisdiction” principle, Chinese citizens committing serious crimes abroad are subject to Chinese jurisdiction. The charges against Chen Zhi include fraud, money laundering, and potentially illegal detention, forced labor, and human trafficking—each a serious offense under Chinese law. This means he will face trial in China, rather than in Cambodia or the primary victim country, the US.

Reviewing China’s handling of similar cross-border telecom and online scam cases, sentences are often very severe. For key figures or particularly serious offenders, life imprisonment is common. In cases involving violence, homicide, or severe personal injury, the death penalty may even be applied. Although China has not yet officially announced specific charges against Chen Zhi, given the scale of his crimes (valued at $15 billion), organizational scale (thousands of people), and possible other serious offenses, he is almost certain to face the highest level of criminal punishment. The trial of this case will attract close international attention, serving as a showcase of China’s resolve and capacity to combat transnational crime.

In addition to personal penalties, the recovery and disposition of massive assets will be another focus. The Chinese government will also strive to pursue Chen Zhi’s domestic and foreign assets, including the approximately 8 billion RMB worth of luxury cars and real estate frozen in Singapore, and more critically, the 127,000 bitcoins seized by the U.S. Department of Justice. How to handle this enormous amount of cryptocurrency involves complex cross-border judicial cooperation and asset repatriation agreements. One possible approach is for China and the US to negotiate through mutual legal assistance channels, with courts potentially ruling to return some recovered assets to compensate victims worldwide. However, this process will face legal and technical challenges, such as verifying victim identities and valuing fluctuating crypto assets, setting precedents for future cases.

Global Crackdown on Crypto Scams: Industry Compliance and On-Chain Tracking as Key

The breakthrough in Chen Zhi’s case is not an isolated event but a reflection of the ongoing global effort to combat scams, money laundering, and other illegal activities involving cryptocurrencies. Over the past year, regulators and law enforcement from Southeast Asia to North America have formed an unprecedented cooperative stance. A notable shift is their increased collaboration with mainstream crypto firms and blockchain analytics companies, creating a “public authority + on-chain technology” joint defense line. In investigations like this and similar cases, firms like Tether, major centralized exchanges (CEX), and blockchain analysis companies such as Chainalysis and Elliptic have played vital roles in tracing funds and freezing related addresses.

This trend sends a strong signal to the entire crypto industry: compliance is no longer optional but a foundation for survival and growth. For centralized exchanges, strict enforcement of KYC (Know Your Customer) and AML (Anti-Money Laundering) policies, along with enhanced information sharing with law enforcement, are crucial for mitigating legal risks and maintaining reputation. For DeFi and decentralized protocols, although responsibility is more diffuse, designing mechanisms to resist illegal fund flows without sacrificing privacy and decentralization is a challenge developers must address. Advances in on-chain tracking technology make it increasingly difficult for illicit funds to hide, effectively raising the technical barriers and costs for criminals.

For investors, this case is a profound risk education. It reveals that behind high returns often lie enormous traps—“pig-butchering” scams exploit victims’ desire for wealth and limited understanding of crypto technology. Protecting assets begins with vigilance against any seemingly “risk-free” investments, especially those recommended by strangers. Second, using reputable, regulated trading platforms and being cautious of overly complex or unverifiable “high-yield” DeFi projects are essential. Finally, understanding basic blockchain knowledge, such as how to verify transaction records, can help identify scams at critical moments. The tightening of global regulation and enforcement is paving the way for industry health, but increasing individual risk awareness remains the first and strongest line of defense.

Investor’s Wake-Up Call: Personal Crypto Asset Security from a Major Case

The dust has yet to settle on the Chen Zhi case, but it has already sounded an alarm for global crypto investors. This intertwined story of scams, money laundering, and massive confiscation offers more than just headline shock—it contains vital safety lessons for every market participant. First, it exposes the operational secrets of advanced scams like “pig-butchering,” which rely not on technical loopholes but on exploiting human weaknesses through long-term emotional manipulation and trust harvesting. The primary defense is to build psychological resilience: remain highly cautious of sudden “confidant” or “investment mentor” contacts online, and believe that “there’s no free lunch.” Especially when discussions quickly shift to crypto investments.

Second, the case underscores the importance of asset custody choices. Victims’ funds were lost mainly because they deposited money into fake trading platforms under scammers’ control. This underscores the importance of using large, compliant, well-regulated mainstream CEX or reputable custody services. These platforms have better mechanisms for fund security, risk control, and law enforcement cooperation. For more experienced users, self-custody wallets are a higher-level option, but they require careful management of private keys or seed phrases and vigilance against phishing and malware. Never keep large assets on unknown or unregulated platforms for long.

Finally, from a macro perspective, this case marks a new phase of “precise crackdown” and “joint law enforcement” globally. Law enforcement agencies and blockchain analysis firms are becoming more adept at on-chain tracking and freezing illicit funds. This reduces the space for illegal activities in crypto networks but also raises new discussions about balancing privacy and asset security for legitimate users. For investors, maintaining legal compliance is fundamental. Staying informed about regulatory developments, understanding AML requirements, and being prepared to provide proof of legitimate fund sources are essential skills in a highly regulated environment. The collapse of Chen Zhi’s empire may be the beginning of a new era—a more transparent, compliant, and smarter crypto age.