What we know about Cambodia's Prince Group and its boss, accused of masterminding massive crypto scam
Cambodian-British national Chen Zhi was charged in New York for alleged wire fraud and money laundering, as US authorities seized more than US$14 billion in bitcoin.
Chen Zhi is the founder and chairman of Cambodian conglomerate Prince Holding Group. (Photos: Prince Holding Group website, CNA/Jack Board)
One of Cambodia's largest conglomerates, Prince Holding Group, is in the spotlight after the US government accused its founder of masterminding a massive cryptocurrency scam which involved forced labour camps.
The US Department of Justice said on Tuesday (Oct 14) that Cambodian national Chen Zhi was charged in New York with wire fraud conspiracy and money laundering.
He and unnamed co-conspirators allegedly exploited forced labour to dupe would-be investors, using the proceeds to purchase yachts, jets and a Picasso painting.
More than US$14 billion in bitcoin has been seized, with FBI director Kash Patel calling it "one of the largest financial fraud takedowns in history".
Chen's businesses were also sanctioned by US and UK authorities as part of a joint operation against a "transnational criminal organisation".
Here's what we know about the tycoon and his company.
WHO IS CHEN ZHI AND PRINCE GROUP?
Chen Zhi, 37, is the founding chairman of the Cambodian conglomerate Prince Holding Group, which has interests in various sectors such as real estate, financial services and consumer businesses.
Its key business units are Prince Real Estate Group, Prince Huan Yu Real Estate Group and Prince Bank.
The group boasts over US$2 billion worth of projects in Cambodia, including a large shopping mall, Prince Plaza, in the capital Phnom Penh.
According to media reports, Chen was born in China. He holds both Cambodian and British citizenship.
On the company's website, Chen is described as a "respected entrepreneur and renowned philanthropist within the Cambodian business community". It stated that he takes part in various charitable activities through the group's charitable arm, Prince Foundation.
Chen has served as an adviser to Prime Minister Hun Manet and his father, former leader Hun Sen, and holds the government-bestowed honorific "Neak Oknha", meaning "prominent tycoon".
WHAT ARE THE ALLEGATIONS AGAINST HIM?
Chen remains at large.
According to US prosecutors, Chen, also known as Vincent, was the mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella, growing it into "one of Asia’s largest transnational criminal organisations."
These fraud schemes, known as "pig butchering" scams, allegedly cheated victims around the world of billions of dollars.
Chen's indictment stated that Prince Holding Group built at least 10 compounds in Cambodia where workers - often migrants held against their will - were forced to contact thousands of victims through social media or online messaging platforms, build rapport and entice them to transfer cryptocurrency with hopes of big investment returns.
"Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States,” said Assistant Attorney General for National Security John A Eisenberg.
At one point, prosecutors said, Chen bragged that the so-called “pig butchering” scam was pulling in US$30 million a day.
The US Department of Justice said Chen and his unnamed co-conspirators used some of the scam proceeds for luxury travel and entertainment, as well as to make extravagant purchases such as watches, yachts and private jets, vacation homes, high-end collectables and rare artwork.
If convicted, Chen faces a maximum penalty of 40 years in prison.
Both Chen and the company have previously denied allegations of criminality.
WHO ARE THE SINGAPOREANS SANCTIONED?
Alongside the charges, the US Treasury Department on Tuesday also designated Prince Group as a transnational criminal organisation. It announced sanctions against Chen and various associated individuals and entities, including three Singaporeans.
The Singaporeans named in the US Treasury order are Chen Xiuling, 43, also known as Karen and who has been linked to Prince Group; as well as Tang Nigel Wan Bao Nabil, 32; and Yeo Sin Huat Alan, 53, both of whom have been linked to Chen Zhi himself.
The sanctions also apply to 17 Singapore entities, at least six of which have been linked to Chen Xiuling, according to a list published by the US Treasury.
The sanctions effectively block US citizens from conducting transactions with them, as well as block any property in their possession or under their control.
A total of 126 Prince Group-affiliated businesses have been added to the sanctions list. The US Treasury Department said that the "vast majority" of them are "offshore shell companies that engage in no apparent real commercial or business activity".
In the United Kingdom, British authorities have frozen Chen’s British businesses and assets, including a 12 million euro (US$13.9 million) mansion in North London, a 100 million euro office building in the City of London, and multiple luxury flats across London.
HOW HAS CAMBODIA RESPONDED TO THE ALLEGATIONS?
On Wednesday, Cambodia’s government said it hopes the US and Britain have sufficient evidence in their pursuit of Chen and Prince Holding Group.
Cambodia’s Interior Ministry spokesman Touch Sokhak said Prince Holding Group has met all legal requirements to operate in Cambodia and has been treated no differently than other major companies investing in the country. He also said the Cambodian citizenship given to Chen was in accordance with the law.
Touch Sokhak said Cambodia will cooperate if there is a formal request backed by evidence.
"We do not protect individuals who violate the law," he said, but stressed that Cambodia’s government itself does not accuse Prince Holding Group or Chen of wrongdoing.
"I don’t have much to say about the American and British authorities’ seeking to arrest him, but first, we just hope that there will be arguments and sufficient proof to put against him," Touch Sokhak told The Associated Press.
