Prince Group's Chen Zhi Arrested and Extradited to China! 14 Billion Bitcoin Scam Empire Collapses

Prince Group founder Chen Zhi was arrested and deported from Cambodia to China. The United States accuses him of orchestrating a scam, leading to the seizure of $14 billion in Bitcoin, the largest case in history. Singapore froze 150 million SGD, Taiwan confiscated 4.5 billion TWD, and Hong Kong froze 2.75 billion HKD. Cambodia’s Hun Sen quickly distanced himself. Chen Zhi, 37 years old, previously held the title of Duke and served as a government advisor.

Chen Zhi: 37-Year-Old Duke from Hacker in Fujian to Cambodian Tycoon

Chen Zhi was born in Fuzhou, Fujian. After earning his first fortune through cyberattacks in his early years, he moved to Cambodia in 2011 to develop real estate, finance, hotels, and tourism businesses. After naturalizing as a Cambodian citizen, he founded Prince Group in 2015 and was later awarded the title of “Duke,” even serving briefly as a high-level government advisor, gaining significant prominence. This transition from hacker to duke is extremely rare in Southeast Asia’s emerging markets, indicating deep connections within Cambodia’s political and business networks.

Prince Group in Cambodia owns a vast business empire, including luxury properties in central Phnom Penh, resorts, financial services companies, and tech enterprises. Chen Zhi has built a legitimate facade through these businesses, but the U.S. Department of Justice accuses him of operating a global cryptocurrency scam network. This “legitimate business covering illegal activities” model is common in transnational crime.

In October last year, the U.S. DOJ charged Chen Zhi with orchestrating scams in Cambodia, stealing billions of dollars in cryptocurrency from victims worldwide. The U.S. Treasury Department seized over $14 billion worth of Bitcoin allegedly linked to him, marking the largest cryptocurrency seizure ever. If true, this suggests Chen Zhi controls over 100,000 Bitcoins, ranking just behind Satoshi Nakamoto and a few early miners.

On October 8 last year, U.S. federal prosecutors indicted Chen Zhi and his associates. On October 14, the U.S. Office of Foreign Assets Control (OFAC) sanctioned three Taiwanese citizens and nine Taiwanese-registered companies. After the Taipei District Prosecutors Office received information from U.S. authorities on October 15, they formed a task force with the Taipei Police Department and the Criminal Investigation Bureau to track the organization’s financial flows and assets in Taiwan.

US, Hong Kong, Taiwan, and Singapore Collaborate to Reclaim 16 Billion in Assets

Investigators and police conducted 47 simultaneous raids on the residences and offices of Prince Group and related companies, including Prince Real Estate Investment Co., Ltd. and Alpha Kang Investment Co., Ltd. Prosecutors stated that 25 suspects were detained, 10 witnesses were summoned for questioning, and assets exceeding 4.5 billion TWD (approximately $145.72 million USD) linked to the Cambodia-based Prince Group were seized.

Singapore police froze about 150 million SGD (approximately 910 million HKD) assets belonging to Chen Zhi and his companies on October 31 last year, including bank deposits, luxury cars, and yachts. Subsequently, local authorities revoked tax privileges related to his family office, and several financial institutions began reassessing risks associated with foreign family offices.

Data shows Chen Zhi has been actively establishing a presence in Singapore since 2017, setting up the family office DW Capital and purchasing luxury homes. He sought permanent residency but faced internal disputes within his family office in 2021 over millions of SGD, leading to prolonged litigation.

On January 7, Singapore courts rejected a request to release funds related to Chen Zhi, which originated from his family office DW Capital. The application was filed by a former HR manager on behalf of the sanctioned director Karen Chen, seeking to use the funds for wages, taxes, and future expenses. The judge expressed concerns about the applicant’s credibility, the complex cross-border money laundering investigation, and the need to preserve criminal proceeds.

Asset Repatriation Statistics from Four Jurisdictions

USA: Seized $14 billion in Bitcoin, the largest crypto confiscation in history

Singapore: Frozen SGD 150 million in assets, including bank deposits, luxury cars, yachts

Taiwan: 47 raids, confiscated TWD 4.5 billion, 25 arrests

Hong Kong: Frozen HKD 2.75 billion in assets, related listed companies still trading

Rapid Political Disassociation by Cambodia

After Cambodia announced on January 7 that Chen Zhi was arrested and deported to China, Hun Sen’s spokesperson, chairman of the People’s Party, issued a statement that evening, stating that anyone who commits a crime cannot evade legal sanctions. The statement also claimed that some individuals attempted to use the name of national leaders as a “protective umbrella,” which the authorities are focused on clearing. This is widely interpreted as a swift attempt to distance the government from the incident, reducing political risks.

This rapid disassociation reflects the pressure faced by the Cambodian government. Chen Zhi, who held the duke title and served as a government advisor, has close ties that could pose international scrutiny if not quickly severed. Hun Sen’s statement effectively signals Cambodia’s willingness to cooperate in fighting transnational crime and not to serve as a haven for criminals.

In contrast, two related listed companies on the Hong Kong Stock Exchange, Kun Group (0924.HK) and Zhi Hao Da (1707.HK), continue trading normally. These companies previously issued statements emphasizing their main operations in Singapore, with no assets in the UK or US, and that their directors and management are not involved in any sanctions. However, since November last year, there has been a wave of resignations among directors and senior executives, including independent directors and auditors.

The Chen Zhi incident highlights differing approaches across jurisdictions in handling cross-border funds and reputation risks. Singapore prioritized preventing capital flight and systemic risks, swiftly freezing assets. Cambodia focused on political disassociation. Hong Kong responded through corporate governance and existing regulatory procedures, maintaining normal trading until judicial or regulatory orders are issued. The pace and thresholds for risk management vary among these regions.