Arrest, Citizenship Revocation, and Extradition Executed in Early January Cambodian interior officials announced Chen Zhi and two other Chinese nationals were detained on January 6, 2026, after months of joint investigations with Chinese authorities, and his Cambodian citizenship, granted in 2014, was revoked in December 2025 [2][3][5]. The trio was transferred to Chinese custody on a China Southern flight, where Ministry of Public Security officers displayed Chen in handcuffs, calling the operation a “major achievement” [1][4]. Both Cambodian and Chinese statements framed the move as bilateral law‑enforcement cooperation rather than a unilateral handover [2][5].

U.S. Indictment Details Massive Online‑Fraud Operations and Forced Labor In October 2025, U.S. prosecutors charged Chen with conspiracy, wire fraud, and money‑laundering, alleging his Prince Holding Group ran cryptocurrency‑pig‑butchering schemes that generated up to $30 million daily [1][3][4]. The indictment further accused him of operating at least ten forced‑labor camps in Cambodia, trafficking workers into scam compounds that targeted hundreds of Americans and other nationals [3][4]. Chinese court documents and regional investigations linked Prince Group properties across Sihanoukville, Phnom Penh, and Chrey Thum to these illicit activities [1][3].

Western Sanctions and Multi‑Billion‑Dollar Crypto Seizures Target Prince Group The United Kingdom and United States jointly sanctioned Prince Group and its affiliates, while South Korea imposed rare sanctions on Chen and related entities in November 2025 [5][2]. U.S. authorities seized roughly $15 billion in Bitcoin tied to Chen’s network, describing it as one of the largest financial‑fraud forfeitures ever, and froze additional assets worth billions in property and cash across multiple jurisdictions [2][3][4]. These coordinated actions aimed to dismantle the financial infrastructure supporting the transnational scam empire [1][4].

Geopolitical Shift Moves Prosecution to Beijing, Limiting U.S. Reach Analysts note that extraditing Chen to China, a nation without an extradition treaty with the United States, likely curtails any imminent U.S. trial, allowing Beijing to handle the case domestically [4][5]. Cambodia’s decision appears motivated by a desire to alleviate Western pressure while aligning with Beijing’s preference for internal resolution of politically sensitive crimes [3][5]. The handover underscores a broader regional push, driven by China and neighboring states, to combat cross‑border cybercrime and forced‑labor networks [3][4].