Cambodia’s Prince Group, a conglomerate led by Chinese-Cambodian tycoon Chen Zhi, marketed itself as a legitimate multinational enterprise involved in property development, finance, and consumer services. However, the U.S. Department of Justice (DOJ) says the company was a front for a sprawling criminal network that exploited thousands through cryptocurrency scams, human trafficking, and money laundering.
Chen, the group’s chairman and a dual citizen of Cambodia and the United Kingdom, has been indicted by the DOJ for allegedly running a massive transnational operation designed to defraud investors and launder illicit funds via a complex web of shell companies and fraudulent ventures across Southeast Asia.
Court filings allege that Chen oversaw at least ten “scam compounds” in Cambodia, where trafficked workers were forced to operate so-called pig butchering scams targeting victims worldwide.
Cambodia has become notorious for hosting such compounds and is considered a hotspot for criminal operations in Southeast Asia, alongside countries including Myanmar, Laos, the Philippines, Malaysia, and Vietnam.
“Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States,” said Assistant Attorney General for National Security John A. Eisenberg.
Compounds controlled by Chen reportedly operated “phone farms,” set up by his associates to amass millions of mobile numbers and target as many victims as possible. During the crackdown, authorities uncovered two such farms containing 1,250 mobile phones controlling roughly 76,000 social media accounts used in scams.
Documents seized from the Prince Group detailed strategies for building trust with victims, including creating realistic social media personas, maintaining consistent communication, and avoiding profile pictures of women who appeared “too beautiful,” in order to make the scams more convincing.
Using crypto to launder funds
Prosecutors allege that Chen and his associates used the stolen proceeds to fund a lavish lifestyle, including private jets, luxury real estate, and rare artwork, while concealing the criminal origins of their wealth through sophisticated money laundering operations, including online gambling and cryptocurrency mining.
Under Chen’s direction, the Prince Group reportedly used advanced cryptocurrency laundering techniques such as “spraying” and “funneling.” Spraying disperses stolen assets across thousands of wallet addresses to make tracing difficult, while funneling channels the funds through intermediary wallets and exchanges before converting them into stablecoins or fiat currency.
Investigators believe the group also relied on cryptocurrency mixers, over-the-counter brokers, and offshore exchanges to move funds undetected through the global financial system.
Authorities have seized approximately 127,271 Bitcoin from wallets controlled by Chen and his network, currently held under U.S. jurisdiction as the investigation continues.
Chen faces up to 40 years in prison if convicted, but remains at large. His current whereabouts have not been disclosed, though international efforts to locate and apprehend him are reportedly ongoing.
The Prince Group has been designated a transnational criminal organization, and its associates have been sanctioned in the U.S. Last year, a separate Cambodian business empire led by tycoon and senator Ly Yong Phat was also sanctioned for running similar crypto scams exploiting trafficked workers.
