Chen Zhi, founder of Prince Group and alleged mastermind behind billions in cryptocurrency fraud, was arrested in Cambodia and deported to China.
The 38-year-old Chinese-Cambodian businessman faces investigation by Chinese authorities following October's $15 billion Bitcoin seizure by U.S. officials.
Cambodia-China Times reported the arrest occurred January 7, ending weeks of speculation about Chen's whereabouts since Prince Group's October shutdown.
What Happened
The U.S. Department of Justice filed its largest-ever cryptocurrency forfeiture action in October, seizing approximately 127,271 Bitcoin (BTC) valued at $15 billion.
Chen was accused of operating forced labor scam compounds across Cambodia that ran "pig butchering" cryptocurrency investment frauds targeting victims globally.
The indictment alleged Chen's operations generated $30 million daily from fraud schemes where trafficked individuals were forced to perpetrate romance and investment scams.
Following U.S. and U.K. sanctions, authorities across Hong Kong, Singapore, South Korea, Taiwan and Thailand froze assets totaling at least $700 million suspected of belonging to Chen or Prince Group.
Properties worth $172 million were seized in Britain, including real estate near the U.S. embassy in London.
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Why It Matters
The case represents one of the largest cryptocurrency-related law enforcement actions globally, highlighting connections between forced labor trafficking and crypto fraud.
Radio Free Asia first flagged Prince Group's criminal activities in February 2024, raising questions about why financial authorities took years to act against what became Asia's largest criminal enterprise.
Taiwan's National Security Bureau alleged Prince Group connections to Chinese "United Front" activities, suggesting potential state backing for the operations.
Chen reportedly built a $60 billion conglomerate over the past decade through online fraud and forced labor schemes operating from Cambodia's scam compounds.
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