Foreign News
The mysterious owner of a ‘scam empire’ accused of stealing $14bn in crypto
Just 37 years old, Chen Zhi is accused of being “the mastermind behind a sprawling cyber-fraud empire, a criminal enterprise built on human suffering”.
With his wispy goatee beard and baby-faced features, he looks even younger than he is. He has certainly become very wealthy, very quickly.
Last week the US Department of Justice charged him with running scam compounds in Cambodia that stole billions in cryptocurrency from victims all over the world. The US Treasury Department has confiscated more than $14bn (£10.5bn) worth of bitcoin that it says is linked to him – it said this was the largest ever crypto-currency seizure.
His own company, the Cambodian Prince Group, describes him on its website as “a respected entrepreneur and renowned philanthropist” whose “vision and leadership have transformed Prince Group into a leading business group in Cambodia that adheres to international standards”. The BBC has contacted the Prince Group for comment.
So, how much do we know about Chen Zhi, the mysterious figure allegedly running a scam empire?
Brought up in Fujian province in south-eastern China, he started with a small, and apparently not very successful internet gaming company, and moved to Cambodia in either late 2010 or 2011, where he began working in the then-booming real estate sector.
His arrival coincided with the start of a speculative property boom in Cambodia. It was fuelled by the availability of large tracts of land expropriated by powerful, politically-connected figures and by a flood of Chinese capital.
Some of it was pouring in on the tail end of Xi Jinping’s Belt and Road Initiative to export Chinese-made infrastructure, and some of it was from individual Chinese investors seeking more affordable alternatives to China’s overheated property market. The number of Chinese tourists visiting Cambodia was also rising fast.
The skyline of the capital Phnom Penh changed dramatically. The characterful, low-rise cityscape of mustard-coloured French colonial mansions was transformed into another Asian high-rise forest of glass and steel towers.
The transformation of Sihanoukville, a once quiet little seaside resort, was even more extreme. It was not just Chinese holidaymakers and property speculators heading there, but also gamblers – gambling is illegal in China.
New casinos sprang up, alongside gaudy, luxury hotels and apartment blocks. There was plenty of money to be made.
Even so, Chen Zhi’s trajectory was startling.
In 2014 he became a Cambodian citizen, giving up his Chinese nationality. This enabled him to buy land in his own name, but required a minimum investment or donation to the government of $250,000.
It was never clear where Chen Zhi’s money came from. When applying for a bank account on the Isle of Man in 2019 he listed an unnamed uncle who he said had given him $2m to start his first property company in 2011, but no evidence for this was ever provided.

Chen Zhi founded the Prince Group in 2015, focused on property development, when he was still only 27 years old.
He got a commercial banking licence in 2018 to establish Prince Bank. The same year he obtained a Cypriot passport, in return for a minimum investment there of $2.5m, giving him easy access to the European Union. He later acquired Vanuatu citizenship as well.
He started Cambodia’s third airline, and in 2020 obtained a certificate to operate a fourth. There were luxury malls in Phnom Penh built by the Prince property arm, five-star hotels in Sihanoukville, and an ambitious scheme to construct a $16bn “eco-city” called “Bay of Lights” there.
In 2020 Chen Zhi was awarded the highest title bestowed by Cambodia’s king, that of “Neak Oknha”, which requires a donation of at least $500,000 to the government.
He had already been made an official adviser to Interior Minister Sar Kheng since 2017, was a business partner with his son Sar Sokha, and an official adviser to Cambodia’s most powerful man Hun Sen, and later his son Hun Manet after he succeeded his father as prime minister in 2023.
Chen Zhi was lauded in the local media as a philanthropist, who had funded scholarships for low-income students and donated substantially to help Cambodia deal with the Covid pandemic.
Yet he remained an enigmatic figure, staying out of the limelight, making few public statements.

“Everyone I’ve spoken to who’s worked with him directly, been in the room with him, they all describe him as very courteous, very calm, very measured,” says Jack Adamovic Davies, a journalist who did a three year-long investigation of Chen Zhi which was published by Radio Free Asia last year.
“I think not being the kind of flamboyant person that people will write tabloid-y things about was smart. Even those who no longer want to be associated with him are still impressed by his quiet charisma, his gravitas.”
But where was all this wealth and power coming from?
In 2019 the property bubble burst in Sihanoukville. The online gambling business had attracted Chinese criminal syndicates, who then began violent turf wars with each other. Tourists were scared off.
Under pressure from China, then-prime minister Hun Sen banned online gambling in August that year. Around 450,000 Chinese left the city as its main business collapsed. Many of Prince Group’s residential blocks were left empty.
Yet Chen Zhi continued to expand his business interests and spend freely.
According to the UK authorities, in 2019 he bought a £12m mansion in north London and a £95m office block in the city’s financial district. The US says he and his associates bought properties in New York, private jets and superyachts, and a Picasso painting.
And, they allege, Chen Zhi’s wealth came from the most profitable business in Asia today, online fraud, and the human trafficking and money laundering that go with it.
The US and UK have imposed sanctions on 128 companies linked to Chen Zhi and Prince Group, and on 17 individuals from seven different nationalities who they allege helped run his scam empire. Assets linked to Chen Zhi in the US and UK have been frozen.

The sanctions announcement describes an elaborate web of shell companies and cryptocurrency wallets through which money was moved to conceal its origins.
It says: “Prince Group Transnational Crime Organisation profits from a litany of transnational crimes including sextortion – a type of fraud involving the solicitation for eventual blackmail of sexually explicit materials, often from minors – money laundering, various frauds and rackets, corruption, illegal online gambling, and the industrial-scale trafficking, torture, and extortion of enslaved workers in furtherance of the operation of at least 10 scam compounds in Cambodia.”
China too had been quietly investigating the Prince Group since at least 2020. There have been a number of court cases accusing the company of running online fraud schemes.
The Beijing Municipal Public Security Bureau has established a task force “to investigate the “Prince Group, a major transnational online gambling syndicate based in Cambodia”.
At its heart, the US and UK allege, were businesses like Golden Fortune Science and Technology Park, a compound built by the Prince Group in Chrey Thom, close to the Vietnamese border.
In the past the Prince Group has denied any involvement in scams, and said it no longer has any connection to Golden Fortune, but the US and UK investigation argues that there is still a clear business link between them.
Mr Adamovic Davies interviewed a number of people living and working near Golden Fortune for his investigation into Chen Zhi. They described brutal beatings of the mainly Chinese, Vietnamese and Malaysians who tried to escape from the compound, where they were forced to run online scams.
“I think it’s the sheer scale of his operations which really makes Chen Zhi stand out,” he says, adding that it is shocking the Prince Group was able to build a “global footprint” without raising alarm bells given the serious criminal charges it now faces.
“What should be uncomfortable for a lot of people is that Chen Zhi should never have been able to acquire all these assets, in Singapore, London or the US. Lawyers, accountants, real estate agents, bankers, all should have been looking at this group and saying, hang on, this doesn’t add up. And they didn’t.”

Today, after all the publicity generated by the US and UK sanctions, businesses are rushing to dissociate themselves from the Prince Group.
The Cambodian Central Bank has had to issue a statement to nervous depositors assuring them they will be able to withdraw their funds from Prince Bank. The South Korean authorities have frozen $64m of its deposits held by Korean banks.
The Singapore and Thai governments are promising investigations into Prince subsidiaries in their jurisdictions – of the 18 individuals targeted by the US and UK, three are Singaporeans.
Cambodia’s government has said little, apart from urging the US and UK authorities to be sure they have sufficient evidence for their allegations.
But it will be difficult for Cambodia’s ruling elite to distance themselves from Chen Zhi, after being so close to him for so long. Cambodia was already facing growing pressure over its tolerance of scam businesses, which some estimate may account for around half of the entire economy.
And what of Chen Zhi himself?
Nothing has been heard or seen of him since the sanctions were announced last week. The enigmatic tycoon, once among the most powerful figures in Cambodia, appears to have vanished.
(BBC)
Foreign News
MI5 chief warns of threats to UK from Russia, Iran and AI
MI5 is devoting more resource to countering state threats than during the Cold War, the head of the intelligence service has said.
Sir Ken McCallum said threats from foreign adversaries had quadrupled in the last decade, with Russia “aggressor number one” as well as increased Iran-linked aggression against Jewish sites and military bases.
At an annual speech in London, MI5’s chief said Russia was waging hybrid warfare at a time when AI was “supercharging the cyber-security contest between attackers and defenders”.
He also warned of rising threats from “extreme right-wing terrorism” and said MI5 had “caught terrorists seeking to exploit AI,” including by integrating the technology with drones.
He said the biggest threat from the misuse of AI was extremist groups using the technology to harness new and existing bioweapons.
However, he noted that work countering terrorism and state threats was now “pretty much of equal scale” which he described as a “huge shift” in recent years.
Sir Ken said Russia had stopped short of “conventional conflict” against Nato and is instead trying to unsettle European countries while its progress in its full-scale invasion of Ukraine is “minimal and horrifically costly”.
Hybrid warfare or hybrid attacks are loose terms which tend to describe non-military methods, for example cyber-attacks, sabotage or misinformation, designed to exert pressure and destabilise an adversary.
These are quite often employed using proxies, but Russia always denies involvement in such attacks despite growing evidence to the contrary.
Sir Ken said MI5 successes in identifying and expelling Russian spies from the UK had left the Kremlin dependent on paying proxies for attempted attacks.
“With its traditional covert footprint eviscerated by almost 1,000 expulsions since the invasion, the Kremlin’s global toolkit is weak, he said.
“So we see them scrambling to pay criminals to do their bidding.”
He added: “These are not the actions of a great power with the strategic upper hand.”
His comments come as a growing number of leaders across Europe have warned Russia may be preparing attacks to test their commitment to supporting Ukraine.
Asked after the speech about Prime Minister Andy Burnham’s recent comments that Russia interfered with the Brexit referendum, Sir Ken said it was “not new news” that there had been attempts from Moscow but distinguished between “interference attempted” and “outcome achieved”.
He said it was a matter of public record that there were pieces in Russian media and “so-called internet trolls and bot farms” seeking to influence the Brexit debate, but also stressed that the result of the 2016 referendum was “not in dispute”.
He added that he was “worried” about the the ongoing debate on Russian interference.
“I am a little bit anxious that we don’t play into our adversaries’ hands by making these trolls look 10ft tall,” he told reporters.
Meanwhile, Sir Ken warned that Iran is also expanding a hybrid campaign in the UK.
The intelligence chief said there had been 50 arrests in the last year over Iran-linked activities.
Much of this Iranian aggression has been aimed at Jewish communities, Sir Ken added, and also at “harder targets, like military sites”.
Sir Ken did not mention arrests at RAF Fairford directly during his speech, but told reporters afterwards the incident was “not unique”.
He added: “We have seen Iranian interest beyond RAF Fairford in the UK.”
The incident at the airbase in Gloucestershire, where three suspicious vans were seen parked nearby, has seen seven people arrested and bailed by counter-terrorism police.
Burnham has said the incident was “almost certainly directed by Iran’s Islamic Revolutionary Guard”.
The MI5 head said in his speech: “What I can say is that those who seek to cause mayhem on British streets – whether hired thugs here or their paymasters overseas – will meet an unflinching response.”
Sir Ken added that the National Security Act – a 2023 law designed to target people working against UK interests for foreign powers – is in heavy use, and has been employed to tackle threats from China as well as Iran and Russia.
On the emerging threat posed by AI, Sir Ken said: “It can produce propaganda and radicalising material tailored to the individual.
“We’ve caught terrorists seeking to exploit Al to improve their reconnaissance and attack methodologies, with Al-enabled drones adding a new twist.”
Sir Ken said the bioweapons threat posed by AI was “not yet realised” but warned the technology has the “potential to change the stakes”.
“These risks are real. The UK Intelligence Community – MI5, GCHQ, MI6 – is working closely with the UK’s globally respected AI Security Institute to take them on.”
Sir Ken said AI poses unknown threats, telling Thames House: “Put at its simplest, human history has given us no experience of facing an actor which is smarter than we are”.
He announced MI5 had launched an AI Threat Assessment Centre, which he said would assess sources and “separate the bluster from the realities”.
In April, the UK’s terrorism threat level was raised to severe for the first time in five years, meaning an attack is highly likely.
Sir Ken said Islamist groups like Al Qaeda and so-called Islamic State both continue to direct and inspire attacks, while the increased risk was also driven “in significant part” by extreme right-wing terrorism.
He continued: “Over the last year the most marked trend has been an increase in cases where extremist versions of anti-immigration and anti-Muslim grievance are tipping into terrorist intent.”
Sir Ken said extreme right-wing terrorism tended to “skew young”, driven by the internet – adding that MI5 had in recent months investigated a “radicalised extreme right-wing 13-year-old here in the UK”.
He said: “That investigation generated insight that enabled one of our international partners to prevent a lethal attack on their soil.”
[BBC]
Foreign News
Pope diagnosed with lung cancer but had successful surgery, Vatican says
Pope Leo XIV has been diagnosed with lung cancer but had successful surgery to remove a lower lobe of his right lung, the Vatican has said in a medical bulletin.
The 71-year-old underwent a 90 minute surgery on Tuesday at Rome’s Gemelli Hospital and was subsequently diagnosed with lung adenocarcinoma.
“After the operation, the Pope awoke normally and returned after a brief period of observation to his room on the 10th floor,” the Vatican said in a statement.
The lump was first detected during what the Vatican has described as “routine checks”.
Earlier, large crowds gathered outside the hospital to greet the Pope, with some waiting for several hours.
They cheered greetings and well wishes as he passed, while he waved and smiled back through the lowered back window of his car.
He was then met by staff on the hospital steps. “I’m sorry,” one of them commiserated, to which the Pope gave a smile and a shrug. “We’re here for you,” he was assured.
In its statement, the Vatican said the whole lower lobe of the Pope’s right lung was removed “to ensure the procedure was radical”.
A Vatican source told Agence France-Presse news agency further tests were being carried out to see if there was any sign the cancer had spread.
It was Leo XIV himself who on Sunday announced news of his operation to the world, speaking from the balcony in St Peter’s Square after delivering the traditional Angelus blessing.
He said the nodule, or growth, on his lung was “contained” and had been found “at a very early stage”, but that doctors had advised him to have it removed.
Gemelli’s thoracic surgery team operated on the Pope, whose schedule has already been cleared until 20 October to give him time to recover.
Nodules are quite common and not necessarily cancerous, but after it was examined the medical team confirmed it was pulmonary adenocarcinoma, “as suspected by pre-operative tests”, the Vatican said.
The Vatican has stressed that the pontiff, who is generally thought to be fit, had no symptoms of infection or illness.

Cardinal Kikuchi Tarcisio Isao of Tokyo wrote on social media that he’d had an audience with Pope Leo on Monday, and said the pontiff felt “nothing wrong” physically.
He said the Pope had decided to check in for surgery as soon as possible because he was due to travel to Latin America in early November, and was keen to stick to that plan.
The trip is particularly significant because it includes a visit to Peru, where the pontiff was a missionary and then a Bishop for many years.
Despite all the reassurances, the news has shaken Catholics all over the world.
“Am I worried? Yes, because I certainly wasn’t expecting anything like this,” Vatican Secretary of State Cardinal Parolin told journalists on Tuesday.
He agreed that the news was like a “bolt from the blue”, but said the cardinals had been struck by the Pope’s “serenity” and were confident in his recovery.
Outside Gemelli Hospital, which has treated several popes and is home to a large statue of John Paul II, a few Catholics lingered after the pontiff was admitted.
Carla had come specially, wanting to be close.
“He seems calm, so we are calm too – even though illness is always unpleasant,” she told the BBC. “We will wait here and pray.”
[BBC]
Foreign News
At least 139 dead, 84 missing as migrant boat capsizes off Djibouti
At least 139 people, including 15 children, have died and 84 are missing after a boat capsized off the coast of Djibouti, according to the United Nations migration agency.
In a statement on Sunday, the International Organization for Migration (IOM) quoted survivors as saying that the incident happened near Guhere off Djibouti’s eastern coast in the Gulf of Aden near the Bab al-Mandeb strait from Thursday night to before dawn on Friday.
The boat was heading from Djibouti to Yemen with more than 300 people on board. More than 80 people – all Ethiopians – survived the shipwreck while Djiboutian search and rescue operations continued.
“Our teams are on the ground alongside local authorities to provide emergency assistance,” IOM Chief of Mission in Djibouti Alexandre Coissac said, lamenting the “devastating loss of life”.
That number only includes those buried by authorities in Djibouti. Others have been buried by the migrants themselves but they won’t be added to the official count until authorities can verify the bodies, Alexandre Coissac, IOM Chief of Mission in Djibouti, told the Associated Press.
“This tragedy is a stark reminder of the dangers faced by migrants along this migration corridor as they seek economic opportunities,” Coissac added.
[Aljazeera]
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