Breaking: Chen Zhi (陈志) Arrested in Cambodia and Extradited to China — Implications for Global Scam Networks
- GA-SO
- 1 day ago
- 5 min read
Updated January 8, 2026 Reported by Julia Lipscomb
Authorities in Cambodia have confirmed the arrest of Chen Zhi (陈志), founder and chairman of Prince Holding Group, and his extradition to China following growing international pressure concerning his alleged role in a vast transnational scam and money-laundering network. The development is one of the most consequential in recent global cybercrime enforcement, intersecting geopolitics, cryptocurrency flows, and complex jurisdictional tensions. Read the AP report.
Who Is Chen Zhi?
Chen Zhi, a Chinese-born Cambodian tycoon, built Prince Group into one of Cambodia’s most prominent conglomerates, with business interests ranging from real estate and finance to aviation and tourism. The OCCRP reports he holds about $45-million worth of property in the U.K., and controls a vast global portfolio of investments. Since 2024, however, both Chen and Prince Group have been at the center of U.S. and U.K. investigations alleging involvement in forced-labor “pig-butchering” scams, human trafficking, and large-scale global financial fraud.
In October 2025, the U.S. Department of Justice (DOJ) charged Chen with wire fraud, money laundering, and running at least 10 scam compounds in Cambodia. The indictment described his network as a “forced-labor scamming enterprises" and U.S. authorities seized approximately $15 billion in Bitcoin, one of the largest cryptocurrency seizures in history.
The U.S. indictment alleges Chen’s enterprises defrauded victims worldwide, including billions in U.S. losses in 2024 alone. His arrest highlights growing international recognition that cyber fraud is not a series of isolated schemes but an organized, industrial system built for scale and resilience.
Arrest and Extradition
According to the Associated Press, Cambodian authorities arrested Chen and transferred him to Chinese custody at Beijing’s request. Reports indicate Cambodia revoked Chen’s citizenship in late 2025, clearing the path for extradition. Despite active U.S. indictments and sanctions, Phnom Penh did not hand Chen over to the United States.
Anti-fraud monitors, including the Global Anti-Scam Organization (GASO), confirmed the extradition on social media and highlighted continuing investigations into Prince Group’s network and pending justice. This represents an important development in law enforcement actions related to transnational scam networks, with potential implications for victims, as law enforcement detained Chen after a sustained investigation into transnational crime networks operating within the country, per Reuters.
Analysts and journalists note that outcomes will be observed globally due to the scope of charges and international law enforcement interest.
The U.S. Response: Standard Non-Comment During Ongoing Proceedings
Both the Associated Press and The Wall Street Journal noted that the U.S. Department of Justice and the U.S. Attorney’s Office in Brooklyn did not issue public comment following the announcement of Chen Zhi’s extradition to China. This non-comment is consistent with standard DOJ practice during active legal proceedings, multi-jurisdictional investigations, and ongoing asset-forfeiture actions.
As of now, the most recent official U.S. statements remain those issued in October 2025, when DOJ announced criminal charges against Chen and filed one of the largest cryptocurrency forfeiture actions in U.S. history. At that time, DOJ leadership described the case as a significant step against cyber-enabled financial crime and forced-labor scamming enterprises.
Public comment is not expected while extradition, foreign prosecution, and cross-border evidence processes remain active. DOJ policy typically restricts statements during such phases to protect ongoing judicial actions and ensure compliance with international procedural requirements.
What Happens to the $15 Billion in Bitcoin?
The U.S. currently holds approximately $15 billion in cryptocurrency associated with the October 2025 indictment. These assets are under seizure, not yet forfeiture. Asset forfeiture and subsequent restitution depend on judicial rulings, jurisdictional coordination, and established DOJ processes.
This is a legal requirement designed to ensure due process.
The timeline will depend on:
ongoing foreign proceedings
jurisdictional determinations
court-ordered forfeiture
claims verification processes
Follow the DOJ for updates.
Victim Guidance FAQ: What Chen Zhi’s Arrest and Bitcoin Seizure Mean for Victims
This FAQ provides clear guidance for victims affected by Bitcoin or cryptocurrency fraud.
As of now, the U.S. government has not announced any restitution process, and no immediate comment has been issued by U.S. authorities regarding Chen Zhi’s extradition to China.
However, victims can prepare in advance by documenting losses and understanding how U.S. asset recovery typically works.
Will victims automatically receive compensation from the $15B Bitcoin seizure?
No. The $15 billion in Bitcoin is currently seized, not yet forfeited. Until assets are fully forfeited through a court order, they cannot be distributed to victims.
Forfeiture requires:
a U.S. conviction (criminal forfeiture), or
a U.S. civil forfeiture action (if prosecution cannot proceed).
Because Chen Zhi is in China, criminal forfeiture is stalled, and civil forfeiture may be required — a slower and contested process.
I live outside the United States. Can I still get restitution?
Possibly, but not guaranteed.
The U.S. prioritizes U.S. victims in restitution cases, but in large multinational fraud cases the DOJ sometimes:
accepts international claims, or
coordinates with foreign governments.
However, no DOJ restitution program has been announced yet and any procedures will follow established federal law.
What documents should victims start collecting now?
Victims should gather as much documentation as possible, including:
Proof of identity
Passport or ID
Contact details with jurisdiction
Proof of loss
Bank transfer receipts
Crypto wallet addresses
Exchange statements
Transaction hashes
Screenshots of conversations
Screenshots of the scam platform
Police report (if filed)
Email correspondence or ticket numbers with law enforcement
Proof linking the loss to the scam network
Names of scam platforms
URLs
Company registration documents (if available)
Phone numbers, Telegram/WhatsApp IDs
Wallet or exchange addresses used by scammers
The more verifiable data a victim can provide, the stronger the claim.
Do victims need a police report?
It is strongly recommended but not legally required for all cases.
U.S. restitution programs typically expect:
a formal report filed in the victim’s home country, or
a complaint filed directly with U.S. authorities.
If you have not filed a report yet, do so as soon as possible.
What if victims do not know the crypto wallet used by scammers?
Victims should still gather:
screenshots of conversations
transaction amounts
dates and times
bank transfer confirmations
Blockchain investigators can use this to reconstruct the path of funds. Victims should not delay reporting because they lack wallet details.
What should victims do right now?
File or update a police report. Document losses with your local police.
File a complaint with FBI IC3. Even if outside the U.S., IC3 will record the victim's information.
Gather all transaction records: bank, crypto, messages, scam site screenshots.
Preserve all evidence. Do not delete conversations or platforms.
Sign up for updates. Follow trusted organizations like GASO and the DOJ for announcements. Follow GASO on social media pages that you'd find at the bottom of this website.
Avoid recovery scams. Many “fund recovery” firms are themselves scams.
Reach out to GASO with any questions or tips. Use the "Let's Chat!" chatbox in the lower right corner to chat with our contributors and researchers.
Note: This article summarizes publicly available reporting from the Associated Press, Department of Justice press releases, and other credible news sources. Statements about U.S. authorities reflect available information as of publication and do not imply criticism or internal interpretation beyond what has been publicly reported. If you have any tips or corrections, please submit in a new chat.