The arrest of Chen Zhi in Cambodia has sparked an international case over the largest bitcoin seizure in history.
According to Cambodia China Times, the entrepreneur accused by U.S. authorities of orchestrating an extensive fraud network was arrested in Cambodia and deported to China. The case revolves around a record bitcoin seizure valued at an estimated $15 billion.
The Cambodian Ministry of Information confirmed that Chen Zhi, founder and chairman of the Prince Group conglomerate, was detained earlier this week and transferred to China at Beijing’s request. The operation followed a joint investigation between the two countries, although it has not been disclosed whether Chen will face formal charges in China.
According to U.S. prosecutors, Chen allegedly ran a network of forced labor compounds in Cambodia, generating billions of dollars through fraudulent cryptocurrency investment schemes and romance scams, commonly known as “pig-butchering scams.” Cambodian authorities also reported that Chen’s citizenship was revoked at the end of last year.
Last October, the U.S. Department of Justice announced its largest-ever forfeiture action, targeting approximately $15 billion in bitcoin connected to the alleged fraud scheme. The operation extended beyond cryptocurrencies, including hundreds of millions of dollars in real estate and other assets in the seizure order.
Geopolitical dispute between the U.S. and China
The case has taken on a geopolitical dimension, becoming a point of friction in U.S.-China relations. In November, China’s National Computer Virus Emergency Response Center accused the U.S. government of orchestrating a separate cyber-theft in 2020, involving over 120,000 bitcoins—worth roughly $11 billion today—stolen from a Chinese mining pool.
According to Beijing authorities, some of these bitcoins later resurfaced under U.S. custody as part of the case linked to Chen Zhi. The United States, however, maintains that the seized bitcoins represent proceeds from fraud and money laundering directly connected to Chen and entities associated with the Prince Group.
