PHNOM PENH, Cambodia — In a significant development, the Cambodian government expressed its expectation that the United States and the United Kingdom possess adequate evidence in their ongoing investigations into Prince Holding Group and its Chairman, Chen Zhi. This comes after both nations enacted synchronized sanctions against the conglomerate, which has been accused of orchestrating extensive online scams and employing forced labor.
Touch Sokhak, spokesperson for Cambodia’s Interior Ministry, asserted that Prince Holding Group has fulfilled all legal obligations to operate within Cambodia and receives treatment comparable to other major international investors. Additionally, Sokhak defended the legality of the citizenship granted to Chen, a native of China, emphasizing that it was in full accordance with Cambodian laws.
While assuring that Cambodia is open to cooperation should a formal evidence-backed request arise, Sokhak made it clear that the government does not engage in protecting individuals purportedly involved in illegal activities. “We don’t protect individuals who violate the law,” he stated, but concurrently pointed out that the Cambodian government itself has not leveled accusations against Chen or his conglomerate.
The coordinated sanctions announced by the U.S. Treasury Department and the U.K. Foreign Office targeted Chen and Prince Holding Group as they are alleged to be part of a transnational crime network committing fraud worldwide and exploiting trafficking victims across Southeast Asia. Authorities in the U.S. have already confiscated over $14 billion in bitcoin linked to Chen and charged him with conspiracy to commit wire fraud and money laundering. According to U.S. Attorney Joseph Nocella, this operation is noted as “one of the largest investment fraud operations in history.”
On the British front, measures were taken to freeze Chen’s assets, including a mansion valued at €12 million (approximately $13.9 million) in North London and a €100 million ($116 million) office building in the City of London, along with several luxury properties.
John Wojcik, a senior threat researcher for Infoblox who previously monitored cybercrime in Southeast Asia, noted that the joint U.S.-British action represents a significant blow to one of the largest cybercrime and money laundering networks in the region. However, he cautioned that merely imposing sanctions is insufficient. He emphasized the need for law enforcement and industry players to dismantle the online infrastructure that supports these operations, including domains and payment systems, to prevent rebranding and scaling by the fraud networks.
Chen currently remains at large and, if found guilty in the United States, could face a maximum sentence of 40 years in prison. Prince Holding Group has consistently denied any association with scam activities and has yet to publicly address the latest claims.
The allegations against Chen’s network suggest the existence of scam compounds in Cambodia that utilized trafficked foreign nationals to perpetrate online fraud, including romance and cryptocurrency investment scams. Victims reportedly fell victim to these schemes, losing their life savings to fake trading platforms, while trafficked workers faced threats of violence should they refuse to participate in the fraudulent operations.
Mark Taylor, a former advocate for human trafficking issues in Cambodia, pointed out that Chen is ingrained within the Cambodian elite and likely enjoys government protection, indicative of Cambodia’s role as a key hub for online scams. “Cambodia is the physical location where much of this activity occurs, but it also serves as a money laundering center for the entire region,” Taylor commented.
Research by the independent group Cyber Scam Monitor has identified over 200 online scam centers and casinos operating in Cambodia, drawing from testimonies of former scam workers, field surveys, and media reports.
In conclusion, Sokhak underscored Cambodia’s willingness to collaborate with other nations, contingent on the provision of substantive evidence, reiterating, “For Cambodia, we will cooperate in every way possible with other countries where there is sufficient evidence.”
