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Chinese authorities have taken custody of Chen Zhi, a businessman accused of running one of the world’s largest cryptocurrency fraud networks, following his deportation from Cambodia this week.
The 38-year-old founder of Prince Group is linked to a pig butchering scam operation that U.S. prosecutors say resulted in the seizure of more than $15 billion worth of Bitcoin—the largest cryptocurrency forfeiture in history tied to online fraud.
Cambodian authorities confirmed that Chen’s Cambodian citizenship had been revoked by royal decree in December 2025, clearing the way for his removal from the country. Two alleged associates, Xu Ji Liang and Shao Ji Hui, were also reportedly detained in connection with the same pig butchering scam operation.
Cambodian officials said the handover was conducted in line with existing agreements designed to combat cross-border criminal activity.
The Ministry of Interior stated that Chen was wanted in connection with large-scale fraud and money laundering allegations tied to online investment scams, commonly referred to as pig butchering scam schemes.
U.S. authorities have previously described the case as unprecedented in scale. In court filings tied to the asset seizure, American prosecutors referred to the operation as “one of the largest cryptocurrency fraud and money laundering operations uncovered to date,” highlighting the global reach of the alleged pig butchering scam network.
Under Chinese law, citizens can be prosecuted for serious crimes committed abroad, particularly when offenses involve fraud, money laundering, or human trafficking.
While Chinese authorities have not yet announced formal charges, legal experts note that similar cases have resulted in severe penalties, including life imprisonment. In instances involving violence or forced labor, courts have previously imposed capital punishment.
Chen is the founder of Prince Group, a Cambodia-based conglomerate established in 2015 with interests in real estate, finance, and hospitality. U.S. and U.K. authorities allege that the company functioned as a front for a criminal enterprise running a sophisticated pig butchering scam, laundering illicit proceeds, and exploiting forced labor across Southeast Asia.
Western governments have formally designated Prince Group as a transnational criminal organization.
According to statements from the U.S. Treasury Department, dozens of cryptocurrency wallets associated with the group have been sanctioned, containing “hundreds of millions of dollars in Bitcoin” tied to illicit activity.
The U.K. government joined the designation, citing concerns over large-scale online fraud and human rights abuses linked to the same pig butchering scam ecosystem.
Prince Group has denied all allegations. In previous responses, the company said it operates legitimate businesses and has rejected claims that it facilitated fraud or labor abuses. Despite these denials, enforcement actions against wallets and affiliated entities have continued to expand.
The deportation follows a major enforcement move by U.S. federal prosecutors in October, when authorities sought to seize more than 127,000 Bitcoin allegedly connected to wallets controlled by Chen and his network.
At the time, the assets were valued at approximately $15 billion, making it the largest cryptocurrency seizure ever associated with an online fraud case and a landmark action against a pig butchering scam.
Investigators say the schemes relied on long-term social engineering. Victims were first approached online and gradually persuaded to trust the perpetrators before being directed to fake cryptocurrency trading platforms.
Once deposits were made, the platforms shut down, and funds were funneled through more than 100 shell companies, exchanges, and mining operations before being consolidated into private Bitcoin wallets.
The U.S. Treasury Department said sanctions were imposed to disrupt these flows and prevent further losses. “Sanctions have been applied to dozens of cryptocurrency wallets,” the department noted in a statement, underscoring the role of financial restrictions in combating pig butchering scam networks.
Chinese authorities are expected to pursue asset forfeiture proceedings and may coordinate with foreign governments on the disposition of seized funds. Legal analysts say recovered assets could eventually be directed toward victim compensation, subject to court approval.
The case comes amid a broader international push to dismantle crypto-enabled fraud rings operating across Southeast Asia. Over the past year, law enforcement agencies have increasingly collaborated with major cryptocurrency firms to trace, freeze, and recover illicit assets.
Industry reports indicate that companies such as Tether, Binance, and Coinbase have assisted authorities in identifying wallets linked to pig butchering scam activity.
According to U.S. data cited in industry reports, reported losses from pig butchering scam schemes reached $3.6 billion in 2024, reflecting the rapid growth and evolving sophistication of these operations.
Regulators say the Chen case underscores both the scale of the threat and the increasing willingness of governments to coordinate across borders to confront it.
