Crypto Scam Empire Owner Allegedly Steals $14 Billion
Chen Zhi, a 37-year-old entrepreneur originally from Fujian, China, is accused of orchestrating a vast crypto scam empire. This enterprise is believed to have defrauded billions of dollars from victims globally. Recently, the U.S. Department of Justice formally charged him with managing operations in Cambodia that tricked investors out of their cryptocurrency.
Key Allegations Against Chen Zhi
The U.S. Treasury Department disclosed that over $14 billion in seized Bitcoin is connected to Chen Zhi, marking the largest cryptocurrency seizure to date. His company, the Prince Group, is portrayed as a respectable business in Cambodia, but evidence suggests a darker side involving significant criminal activities.
Background and Rise to Prominence
- Chen Zhi moved to Cambodia around 2010 or 2011 amid a booming real estate market.
- He became a Cambodian citizen in 2014, enabling him to invest directly in property development.
- In 2015, he founded the Prince Group, focusing on various business sectors, including property and banking.
His rapid ascent includes obtaining multiple citizenships and starting a new airline. Chen Zhi also gained recognition as a philanthropist through donations for education and COVID-19 relief in Cambodia.
The Turning Point: The Collapse of Sihanoukville’s Property Market
In 2019, a significant downturn in the property market occurred, correlated with the ban on online gambling in Cambodia. Approximately 450,000 Chinese nationals left Sihanoukville, leading to abandoned residential projects. Nevertheless, Chen Zhi’s business interests continued to expand, raising concerns about the source of his wealth.
Allegations of Transnational Crimes
Western authorities have implicated Chen Zhi and the Prince Group in a range of serious offenses, including:
- Online fraud and scams targeting victims worldwide.
- Money laundering and trafficking operations.
- Corruption and racketeering linked to illegal gambling activities.
Authorities have targeted 128 entities associated with Chen Zhi for sanctions, freezing assets as part of their investigations. Reports indicate that his operations involved elaborate schemes designed to obscure financial origins through a network of shell companies and cryptocurrency wallets.
Response and Current Status
Following the allegations, many businesses are distancing themselves from the Prince Group. The Cambodian government has remained relatively quiet but is under increasing scrutiny regarding its ties to Chen Zhi. Meanwhile, he has seemingly disappeared, raising questions about his next moves amid a growing web of legal challenges.
Chen Zhi’s fate remains uncertain, but the implications of this emerging scandal could have far-reaching effects on Cambodia’s economy and governance, especially in dealing with the ongoing presence of fraudulent operations.
