A businessman accused by U.S. authorities of overseeing a sprawling crypto-fraud network has been detained in Cambodia and deported to China, according to a report from the Cambodia China Times, months after Washington moved to seize billions of dollars in bitcoin allegedly tied to his operations.
Cambodia’s information ministry confirmed Wednesday that Chen Zhi, founder and chairman of the Prince Group conglomerate, was arrested earlier this week and transferred to China at Beijing’s request following a joint investigation by the two countries. Officials did not disclose whether he faces charges in China.
U.S. prosecutors allege Chen directed the operation of forced-labor scam compounds across Cambodia that generated billions of dollars through cryptocurrency investment-and-romance fraud schemes commonly known as “pig-butchering” scams.
In October, the U.S. Department of Justice said it filed its largest-ever forfeiture action, seeking to seize roughly $15 billion worth of bitcoin linked to the alleged scheme, along with hundreds of millions of dollars in real estate and other assets.
Cambodian authorities said Chen’s citizenship was revoked late last year.
Bitcoin seizure
The case has also become entangled in a broader geopolitical dispute over the seized bitcoin.
In November, China’s National Computer Virus Emergency Response Center accused the U.S. government of orchestrating a separate, earlier cyber theft involving more than 120,000 bitcoin, now worth around $11 billion, from a Chinese mining pool in 2020, according to a report by Bloomberg.
Chinese officials claimed some of those coins later surfaced in U.S. custody as part of the case tied to Chen.
U.S. authorities maintain that the bitcoin they seized represents proceeds of fraud and money laundering connected to Chen and entities tied to Prince Group.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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