The Cambodian government expressed its stance regarding the recent sanctions imposed by the U.S. and Britain on Prince Holding Group and its Chairman, Chen Zhi. The announcement came after allegations surfaced accusing the conglomerate of involvement in extensive online scams and the use of forced labor.
Touch Sokhak, spokesman for Cambodia’s Interior Ministry, stated that Prince Holding Group has fulfilled all necessary legal requirements to operate within the country and has received no preferential treatment compared to other significant foreign investors. He emphasized that the Cambodian citizenship granted to Chen, a Chinese national, was in accordance with national laws. While stating that Cambodia would cooperate with international authorities if they present formal requests substantiated by evidence, Sokhak affirmed that the government does not harbor individuals violating the law.
“There is little I can say about the American and British authorities’ pursuit,” he remarked, while hoping that substantial evidence would be provided against Chen.
On Tuesday, the U.S. Treasury Department and the U.K. Foreign Office announced coordinated sanctions against Chen Zhi and his business empire based on accusations of establishing a transnational criminal network engaged in fraudulent activities that have victimized individuals globally and exploited trafficked laborers across Southeast Asia. This action follows the U.S. authorities’ seizure of over $14 billion in bitcoin associated with Chen and charges against him for wire fraud and money laundering conspiracies. Chen, 38, faces serious allegations, including authorizing violence against workers and bribing foreign officials, with U.S. Attorney Joseph Nocella referring to it as one of the most significant investment fraud operations recorded.
In a related move, British authorities froze Chen’s assets in the U.K., which include a €12 million mansion in North London and a €100 million office building in the City of London, alongside several luxury flats.
Experts highlight the magnitude of this situation. John Wojcik, a senior threat researcher, noted that the joint efforts from the U.S. and U.K. represent a critical blow against a major cybercrime and money laundering operation in the region, although he cautioned that more comprehensive measures are needed to dismantle the online infrastructure supporting such activities.
Chen Zhi remains at large, and if convicted in the U.S., could face up to 40 years in prison. Prince Holding Group has previously denied any engagement in scam operations, and has not publicly addressed the most recent allegations.
Further accusations suggest that Chen’s network operated scam facilities in Cambodia, employing trafficked foreign nationals to conduct fraudulent schemes such as “romance” scams and dubious cryptocurrency investments. Victims were reportedly lured into investing their life savings into fake trading platforms, while trafficked workers were coerced into committing fraud under threats of violence.
Mark Taylor, a former anti-human trafficking advocate in Cambodia, remarked on Chen’s connections within the elite circles of Cambodia, suggesting that he enjoys considerable protection from the government. He noted that Cambodia serves not only as a host for these fraudulent operations but also as a laundering hub for illicit activities in the region.
Moreover, the independent research organization Cyber Scam Monitor has reported over 200 online scam centers and casinos operating in Cambodia, highlighting the significant scale of this issue.
Touch Sokhak reiterated Cambodia’s willingness to cooperate with international partners, contingent on the provision of credible evidence against those alleged to violate the law.
