In a significant international law enforcement operation, Chinese-born businessman Chen Zhi has been arrested in Cambodia and handed over to Chinese authorities. He stands accused of masterminding massive cyberscam centres that allegedly used forced labour to perpetrate cryptocurrency frauds worth billions of dollars.
The Arrest and Extradition of a Tycoon
Cambodia's Interior Ministry confirmed the arrest and extradition on Wednesday. The operation, conducted on Tuesday, was part of a cooperative effort to combat transnational crime between Cambodia and China. The ministry stated the action followed a formal request from Chinese authorities and several months of joint investigative work.
Alongside Chen Zhi, two other Chinese nationals, Xu Ji Liang and Shao Ji Hui, were also arrested and extradited. In a move that stripped him of local protection, Chen's Cambodian nationality was revoked by a Royal Decree in December last year, paving the way for his handover. Chinese authorities had not issued an immediate comment on the development by late Wednesday.
A Vast Criminal Empire Unravels
Chen Zhi is the founder of the Prince Holding Group, a multinational conglomerate that US authorities allege served as a front for one of Asia's largest transnational criminal organizations. According to the US Department of Justice, Chen presided over forced labour camps in Cambodia.
Trafficked workers in these camps were compelled to run sophisticated cryptocurrency fraud schemes, which have reportedly netted the syndicate billions of dollars from victims worldwide. In a landmark action, the US Justice Department in October unsealed an indictment against Chen and filed its largest-ever forfeiture action, targeting approximately 127,271 bitcoin. At current prices, this seizure is valued at over $11 billion.
The Scale of Cambodia's Scam Industry
This case sheds light on a pervasive and illicit industry in Cambodia. Experts estimate the country hosts dozens of such scam centres, employing tens of thousands of people. These operations, generating billions in revenue, involve a mix of willing participants and individuals who are trafficked and forced into conducting online scams.
The extradition of a high-profile figure like Chen Zhi marks a critical step in addressing this widespread issue. It highlights increasing international pressure and cooperation to dismantle networks that exploit labour and defraud global citizens on an industrial scale.
