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
‘Notorious Tanzanian drug trafficker’ arrested during raid in Zambia
A “notorious” Tanzanian drug-trafficking kingpin has been arrested in Zambia during a raid, the Zambian Drug Enforcement Commission (DEC) has announced.
Ahmed Muharram was among several suspects detained in Zambia’s capital, Lusaka, along with large quantities of marijuana and cough syrup containing codeine in several drug busts on Tuesday, the authorities said.
“The suspect is a known transnational drug trafficker,” the DEC said, adding that the 40-year-old had long been on the anti-drug agency’s watch-list.
The arrest of Muharram, who has not yet commented, was made possible thanks to a series of intelligence-led operations, the agency said.
Under Zambian law, marijuana is classed as a dangerous drug and is illegal to possess.
The trafficking, possession and use of illegal drugs such as cannabis is punishable by a fine or a prison sentence.
The southern Africa country struggles with drug abuse and trafficking, especially cannabis and heroin.
During Tuesday’s operations, the DEC said it had seized 221.2kg of cannabis hidden in a lorry in Lusaka’s Lilayi area.
The search was extended to Muharram’s residence in Lilayi, where officers discovered an additional 1,159.6kg of “high-grade” cannabis, bringing the total seizure to 1,380.8kg, the agency added.
A Zambian national who was also arrested is believed to be an accomplice in the organised drug-trafficking scheme.
The DEC said their operations also saw the arrests of:
- A Zambian national for trafficking 55 boxes of Benylin containing codeine in Lusaka
- Two other Zambians for trafficking cannabis concealed in their vehicle
- Two Burundian nationals in the southern district of Chirundu for trafficking cannabis in separate vehicles: some was hidden inside a spare lorry tyre, some in gas compressors and additional cannabis was mixed with sugar, salt and paint and concealed in tins and buckets of paint.
“All suspects have since been detained in lawful custody and will appear in court soon,” DEC said in a statement.
The agency said it was committed to ensuring that Zambia was neither used as a corridor nor a destination for drug trafficking.
[BBC]
Foreign News
Fearing Russia will seize her town, war widow moves husband’s grave to Kyiv
The quiet of a Kyiv cemetery is broken by a trumpet salute, then a burst of rifle fire.
Soldiers stretch a Ukrainian flag over a shiny wooden coffin and stand silently alongside in the sparkling white snow. A woman cries, her face crumpling.
Natalia is burying her husband for the second time.
Vitaly was killed three years ago fighting in the eastern Donbas and his first grave was in their home town of Slovyansk. But Russian forces have advanced since then and the area is increasingly under attack.
So Natalia had her husband’s grave exhumed and Vitaly’s remains moved hundreds of miles to Ukraine’s capital.
“When we buried him in Slovyansk, land was being liberated and we thought the war would soon end,” Natalia explains, after the reburial ceremony conducted with military honours. “But the frontline is constantly moving closer and I was scared Vitaly might end up under occupation.”
Vitaly was a ceramics artist who volunteered to defend his country in the early days of Russia’s full-scale invasion in 2022.
“He didn’t want to, but he had do it. He was a patriot,” Natalia explains, through her tears. She was pregnant when her husband was killed and he never got to meet their daughter.

The decision to move Vitaly’s body from the land where he was born and fought was extremely painful.
“It was very hard, emotionally. But it was the right decision,” Natalia is sure. “It would have been far harder to leave him, to know that he had stayed.”
Ukrainians are facing unimaginable choices now as the US tries to broker a peace deal between Moscow and Kyiv, but Russia pushes on with its invasion.
That includes massive aerial attacks against Ukraine’s energy system, against all rules of war.
Meanwhile, the most pressure for compromise is on Kyiv.
At some point, the US-led talks will hone in on the most sensitive issue of all: the status of land in the eastern Donbas region that so many men have died defending.
Ukraine still controls around a fifth of the area, including Slovyansk. But the town is close to the current frontline where Russian forces have been trying to push forward for months.
Kyiv proposes freezing the fighting there, ceding nothing more. But Moscow wants to be handed control over the rest of the region and the US is thought to agree.
That is far from Vladimir Putin’s original plan to take over all Ukraine – to “denazify” and “demilitarise” as he snarled at the time. But it would allow him to claim a victory for Russia of sorts.
“There are drones in the streets, hitting minibuses, and glide bombs fall in the city centre, leaving craters,” Natalia says, describing life in Slovyansk now, where her husband had been buried.
“A few months ago, the attacks were weekly. Now it’s every couple of days.”
North of Natalia’s hometown, up around the city of Kharkiv, there are more signs that the danger zone is spreading.
Workmen hammer stakes into the frozen ground to fit nets which they’ll then stretch over the road in a canopy as protection against Russian drones.
Not far away, in an unmarked spot, we visited a workshop for Ukraine’s own UAVs.
The soldiers of the Typhoon unit work in a basement filled with heaps of kit and cables, reached via a handmade wooden staircase. The men are responsible for repairing drones damaged at the frontline and for innovation: Ukraine needs every chance against an enemy with more men and more resources.

The music playing as the team work is chirpy French pop, but the soldiers’ mood is mixed.
“We try not to discuss it here,” 29-year old Roman replies, when I ask about giving up territory in return for peace. “People quarrel and we don’t need that right now. We need to unite, and fight the Russians.”
Roman lost “a lot of guys”, he says, during his two years in the infantry, fighting in the Donbas.
No surprise that it’s far harder to recruit these days. Last month the country’s defence minister revealed that a staggering 200,000 soldiers were absent without leave.
But like many Ukrainians, Roman is sure that gifting the Donbas to Putin would not make Ukraine secure.
“The Russians will only come back for more,” he says.
Hunched over a laptop in the back room, another soldier admits that “victory” in this war looks very different these days.
“I would say our victory is in preserving our statehood,” Maksym argues, choosing his words carefully. “Even if we have three square kilometres of land, but we keep our constitution and our institutions, then this is still Ukraine.”
He thinks the soldiers should fight on, regardless.
“Russia is 10 times our size. But still we can’t surrender.”
Back in Kyiv, Natalia clings to the arm of a friend, as grave diggers shovel fresh earth onto her husband’s coffin then slot a wooden cross into place on top.
A photograph of Vitaly shows him smiling, posing beside a yellow sunflower.
Natalia is relieved to have her husband close again where she and their daughter, Vitalina, can visit his grave safely.
“She watches videos of him, looks at photos and she loves him very much even though they never met,” Natalia smiles.
She also hopes to tell her husband soon that she’s pregnant using the sperm the couple had frozen specially at a clinic, just a few days before Vitaliy was killed.
Many soldiers now do the same before heading for the front.
It’s a brutal fact, but Natalia says none of Vitaliy’s soldier friends made it to his reburial, because so many of them, too, are now dead.
Ukraine has paid an immense price already for four years of all-out war.
Ceding land to Russia that it already controls is one thing: an option now quietly accepted by many.
But Natalia can’t bear the thought of Russia taking more territory, including the town where she and Vitaly lived and were in love.
She has “no doubt” her husband would have wanted the army to fight on, not concede now.
“Russia may pause for a year, then there will be another breakthrough and they’ll be in Kharkiv,” Natalia says.
“I just don’t believe Russia will stop.”
[BBC]
Foreign News
China executes four more Myanmar mafia members
China has executed four members of the Bai family mafia, one of the notorious dynasties that ran scam centres in Myanmar, state media report.
They were among 21 of the family’s members and associates who were convicted of fraud, homicide, injury and other crimes by a court in Guangdong province.
Last November the court sentenced five of them to death including the clan’s patriarch Bai Suocheng, who died of illness after his conviction, state media reported.
Last week, China executed 11 members of the Ming family mafia as part of its crackdown on scam operations in South East Asia that have entrapped thousands of Chinese victims.
For years, the Bais, Mings and several other families dominated Myanmar’s border town of Laukkaing, where they ran casinos, red-light districts and cyberscam operations.
Among the clans, the Bais were “number one”, Bai Suocheng’s son previously told state media after he was detained.
The Bais, who controlled their own militia, established 41 compounds to house cyberscam activities and casinos, authorities said. Within the walls of those compounds was a culture of violence, where beatings and torture were routine.
The Bai family’s criminal activities led to the deaths of six Chinese citizens, the suicide of one person and multiple injuries, the court said.
The Bais rose to power in Laukkaing in the early 2000s after the town’s then warlord was ousted in a military operation led by Min Aung Hlaing – who now leads Myanmar’s military government.
The military leader had been looking for co-operative allies, and Bai Suocheng – then a deputy of the warlord – fitted the bill.
But the families’ empires crashed in 2023, when Beijing became frustrated by the Myanmar military’s inaction on the scam operations and tacitly backed an offensive by ethnic insurgents in the area, which marked a turning point in Myanmar’s civil war.
That led to the capture of the scam mafias and their members were handed to Beijing.
In China, they became subjects of state documentaries which emphasised Chinese authorities’ resolve to eradicate the scam networks.
With these recent executions Beijing appears to be sending a message of deterrence to would-be scammers.
Hundreds of thousands of people have been trafficked to run online scams in Myanmar and elsewhere in South East Asia, according to estimates by the United Nations.
Among them are thousands of Chinese people, and their victims who they swindle billions of dollars from are mainly Chinese as well.
(BBC)
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