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
Iran accuses US of striking critical infrastructure as war intensifies
A seventh consecutive night of attacks by United States forces on targets across Iran has left 10,000 people without water after a desalination plant was hit, with Iran retaliating by launching another wave of drones and missiles at US-allied Gulf states.
Hamzeh Pour, chief executive of the Hormozgan Water and Wastewater Company, was quoted by the Tasnim news agency on Saturday as saying that a seawater pumping station and a power transformer at the Bunji desalination plant in Jask in southern Iran were “completely destroyed”, depriving 20 villages of water.
Iran’s retaliation also targeted civilian infrastructure, a war crime under international humanitarian law.
In the early hours of Saturday, Kuwait announced the closure of its airspace and said two power and water desalination plants were hit by Iranian attacks. Several Kuwaiti firefighters were wounded while responding to a fire sparked by the strikes, the country’s firefighting force said.
Air raid sirens also sounded repeatedly in Bahrain, where authorities urged residents to seek shelter.
In Jordan, authorities said they intercepted 10 Iranian ballistic missiles.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said its naval forces had targeted a US military fuel pier at Kuwait’s al-Ahmadi port and a US warplane assembly site at Bahrain’s Sheikh Isa Air Base. The IRGC also said it attacked a US base in Azraq in Jordan, claiming to have destroyed two American fighter jets.
The Iranian attacks came after the US military’s Central Command, or CENTCOM, announced it had carried another wave of overnight strikes targeting “surveillance sites, military logistics infrastructure, underground weapons storage, and maritime capabilities” in Iran.
[Aljazeera]
Foreign News
Eight killed, at least 34 missing after landslide in China’s Chongqing
Rescuers are rushing to locate dozens of people missing in the southwestern Chinese city of Chongqing, after a deadly landslide buried homes in the area, according to Chinese authorities.
The landslide took place around 9:10am (01:10 GMT) on Friday in Chongqing’s Pengshui county, killing eight people, leaving 34 unaccounted for and displacing more than 1,100, reported state media.
Footage shared by China’s CCTV broadcaster showed a huge buildup of rocks and dirt covering part of a residential and commercial street at the bottom of a mountain in the region.
Ten people have been rescued from the debris, including two who are seriously injured, reported China’s state-run Xinhua news agency.
Water, electricity and gas supplies were cut off within a one-kilometre (0.6-mile) radius of the landslide to prevent further disruptions. More than 800 rescuers have gone to the site, reported CCTV.

Authorities said they sent more than 8,000 disaster relief items to Chongqing, including tents, folding beds and family emergency kits.
Pengshui county is located in the southeast part of Chongqing, bordering the provinces of Hubei and Guizhou.
The area where the landslide happened is known for “unpredictable” steep terrain, a local official told a news conference, adding that dangerous rocks remain along the sides of the cliff.
The government has allocated 50 million yuan ($7.36m) in natural disaster relief funds to support the rescue and relief operations and to provide assistance to affected residents, the Ministry of Finance and the Ministry of Emergency Management said.
[Aljazeera]
Foreign News
Venezuela earthquake: Number of known dead rises to nearly 5,000 victims
Almost 5,000 people are known to have died in two earthquakes that devastated Venezuela in June, but the United Nations estimates that as many as 50,000 people may still be missing – with many feared buried under rubble.
The number of confirmed deaths is now higher at 4,930, lawmaker Jorge Rodriguez announced on Thursday
The disaster almost a month ago impacted tens of thousands of others. Nearly 17,000 people are wounded, and 21,120 are living in shelters.
Venezuelan teams have been operating since the earthquake struck, but locals say their response has been slow.
“From the very first moment, from when the earthquake happened, there was an immediate response, but from civilians. Civilians and independent people. The state’s response is only being seen now,” Cinthia Pulido, a Venezuelan displaced by the earthquakes, told Al Jazeera. “We’re watching and waiting for some kind of answer.”
International rescue teams sent in the immediate aftermath of the disaster have left as the focus moves to providing humanitarian relief.
“The little I can get is just for me to survive, support my children, and help my mum,” Louismarez Paez, who has also been displaced, told Al Jazeera.
Her mother, she said, does not receive any assistance other than that which she herself provides.
Venezuela has ‘crucial resources’ it cannot access
Venezuela has faced tight US sanctions since 2015, which experts say is making the government’s job even harder.
“Venezuela has crucial resources that it is not being allowed to access,” Mark Weisbrot, senior economist and co-director at the Center for Economic and Policy Research, said.
That includes $11bn blocked by the US and European countries that Venezuela “should legally have”, Weisbrot said.
Earlier this week, a group of 14 Democratic lawmakers in the US sent a letter urging the White House to ease economic sanctions on Venezuela to aid recovery efforts, according to a report from Spanish newspaper El Pais.
The sanctions, they wrote, are “severely hampering urgent relief efforts” and have “severely undermined the country’s response and reconstruction efforts”.
The UN estimates that the recovery efforts in Venezuela could cost the country $37bn.
[Aljazeera]
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