A baby-faced tycoon, Chen Zhi, has garnered attention as a prominent figure in Cambodia, where he has gained influence through philanthropy while heading one of the nation’s largest conglomerates, the Prince Group. Yet, U.S. authorities have lifted the veil on a darker reality, accusing him of leading a vast transnational criminal organization involved in forced labor and sophisticated cryptocurrency scams that reportedly netted him and his associates up to $30 million daily.
Recently, federal prosecutors in New York unveiled they had seized approximately $15 billion in cryptocurrency linked to Chen after a lengthy investigation, shedding light on an alleged kingpin of Southeast Asia’s criminal underworld. This empire is said to be protected by powerful political connections and, according to the U.S. Department of Justice, contributed significantly to a staggering $10 billion loss for victims in the U.S. last year alone.
The Prince Group claims to employ thousands and engages in diverse sectors such as luxury real estate, banking, and hospitality. However, it was classified as a transnational criminal organization by U.S. authorities, leading to an indictment of Chen and several associates on charges of money laundering and wire fraud. Despite these charges, Chen remains at large, without facing legal repercussions in Cambodia, which lacks an extradition treaty with the U.S.
Authorities allege that Chen established a sprawling network of over 100 shell companies to launder funds across a dozen nations, including Singapore and St. Kitts and Nevis. Experts remark that Chen embodies a new breed of criminal figure who has effectively blended corporate respectability with illegality. Jacob Sims, a transnational crime expert, noted, “Chen Zhi isn’t a mob boss as we traditionally conceive of them – he is the polished face of a state-protected criminal economy.”
In light of these developments, CNN reached out for comments from the Prince Group and the Cambodian government, but responses remain pending. Historically, the Prince Group has dismissed allegations of misconduct as “false and defamatory,” but their stance is becoming increasingly untenable given the gravity of the charges.
Chen’s origins trace back to China’s Fujian province, where he began by operating internet cafés before venturing into real estate investments in Cambodia around 2011. This move coincided with a surge in casino developments, culminating in Sihanoukville morphing into a bustling gambling hub characterized by lax regulations that welcomed organized crime, money laundering, and online scams.
Soon after settling in Cambodia, Chen naturalized as a citizen—a status attainable through a donation of $250,000 to the government. His contributions and connections facilitated rapid ascension within the Cambodian elite, leading to his position as a senior adviser to the government and garnering him the honorific title of “neak oknha.”
Reports indicate that Chen has made diplomatic visits to the U.S. using a passport that may have been acquired through bribery. Despite his public image of philanthropy, including a reported $14 million in donations to various causes, the indictment paints a starkly different picture, alleging the existence of labor camps where workers are coerced to execute scams.
Moreover, investigators have implicated numerous entities linked to Chen, with allegations suggesting involvement in forced labor camps where substantial violence and coercion are reported. The U.S. indictment details the operation of ten such camps in Cambodia, undermining the country’s reputation as a promising investment destination.
Amidst international scrutiny, Cambodia is grappling with its designation as a “de facto scam state.” Analysts estimate the nation could be reaping between $12.5 billion to $19 billion annually from cybercrime—a staggering figure that could represent 60% of the nation’s GDP. Recent reports have accused the Cambodian government of allowing human rights violations and abuses to escalate without intervention.
In response to growing international pressure, Cambodia claims it is committed to combatting online crime, with Prime Minister Hun Manet forming a commission focused on this issue. The government asserts that it has arrested thousands of suspects, yet the operations of scamming compounds continue largely unchecked.
As regional countries intensify efforts to combat the trafficking of their citizens to Cambodia’s scam centers, Chen’s vast wealth and the expansive criminal network remain largely intact. The urgency now lies in whether international cooperation can effectively dismantle not only Chen’s empire but the systemic issues enabling such criminal enterprises.
With analysts emphasizing the unprecedented nature of U.S. and U.K. actions against Chen’s operations, there is a shared sense that enduring change hinges on sustained international pressure and coordinated efforts. The fight against the expansive framework of online scams could signify a crucial turning point in curbing the operations of what has become a sophisticated criminal economy in Southeast Asia.
