Cambodia Arrests Tycoon Linked to $15B ‘Pig-Butchering’ Crypto Scams
Who Was Arrested and What Is He Accused Of?
A businessman accused by U.S. authorities of overviewing one of the largest crypto-fraud networks ever alleged has been detained in Cambodia and deported to China, according to a report by the Cambodia China Times. The arrest follows months of coordinated action by U.S., Chinese, and regional authorities targeting assets and entities linked to the alleged operation.
Cambodia’s information ministry confirmed that Chen Zhi, founder and chairman of the Prince Group conglomerate, was arrested earlier this week and transferred to China at Beijing’s request. Officials did not say whether Chen has been formally charged in China or what legal proceedings may follow.
U.S. prosecutors allege Chen played a central role in running scam compounds across Cambodia that relied on forced labor and generated billions of dollars through cryptocurrency-based fraud. These schemes, commonly referred to as “pig-butchering” scams, typically combine romance manipulation with fake investment opportunities, often steering victims into transferring funds in BTC or other digital assets.
Investor Takeaway
Why Is the US Pursuing One of the Largest BTC Seizures Ever?
The arrest comes months later than the filed what it described as its largest-ever forfeiture action. In October, prosecutors sought to seize roughly $15 billion worth of BTC allegedly tied to the fraud network, alongside hundreds of millions of dollars in real estate and other assets.
According to U.S. filings, the BTC represents proceeds from linked to entities associated with Chen and Prince Group. Authorities argue the funds were moved through complex crypto transactions to obscure their origin, a pattern increasingly viewn in large-scale online fraud cases.
Cambodian authorities said Chen’s citizenship had been revoked late last year, clearing the way for his transfer. The move reflects growing pressure on Southeast Asian governments to address scam compounds that have drawn international scrutiny for human trafficking, forced labor, and financial crime.
How Did a Fraud Case Turn Into a Geopolitical Dispute?
Beyond the criminal allegations, the case has become entangled in a broader dispute between Washington and Beijing over ownership and origin of seized BTC. Chinese officials have questioned how some of the digital assets now held by U.S. authorities were obtained.
In November, China’s National Computer Virus Emergency Response Center accused the U.S. government of orchestrating a separate cyber theft in 2020 involving more than 120,000 . At current prices, those coins would be worth roughly $11 billion. A Bloomberg report said Chinese officials later claimed some of those BTC appeared in U.S. custody as part of the case connected to Chen.
U.S. authorities reject that narrative, maintaining that the BTC under forfeiture represents criminal proceeds tied to fraud and laundering activity. The dispute has added a diplomatic layer to what would otherwise be a criminal and financial investigation, with both sides framing the origin of the assets very diversely.
Investor Takeaway
What Does This Case Say About Crypto Crime Enforcement?
The detention of Chen reflects how crypto-related crime enforcement has changed. Investigations now span years, multiple jurisdictions, and both digital and physical assets. Authorities increasingly track onchain flows alongside real-world businesses, property holdings, and corporate structures.
It also shows how alleged crypto crime can intersect with broader issues, including labor abuse and organized fraud networks operating behind legitimate corporate fronts. For regulators and law enforcement, these cases are no longer just about tracing wallets, but about dismantling entire ecosystems built around illicit finance.
The outcome of Chen’s transfer to China, and the fate of the seized BTC, remain uncertain. What is clear is that the case has become a test of how major powers handle crypto seizures, asset forfeiture, and cross-border cooperation when billions of dollars in digital assets are involved.
As governments tighten scrutiny of large crypto flows, cases like this suggest that high-value tied to alleged crimes may face years of legal and political battles before ownership is finally resolved.
