$14 Billion Crypto Phantom: Chen Zi is 37 years old but faces accusations of masterminding a vast cyber-fraud empire. The scheme has ensnared victims across the globe. With thin beard and a boyish face, he appears younger than his age. Despite his relatively young age, he amassed wealth at an astonishing pace.
Last week, the U.S. Department of Justice filed charges against him in Cambodia. Authorities claim he stole billions in cryptocurrency from victims worldwide.
The U.S. Treasury allegedly seized Bitcoin valued at nearly $14 billion. Officials say the assets are linked to Zi. This is the largest cryptocurrency seizure in history.
Chen Zi’s company, Cambodia-based Prince Group, describes him on its website as a “respected entrepreneur”.
Government sources told Moneycontrol that the accusations were the result of years of investigation. A senior industry official confirmed that no public warnings had been issued. “If someone reduces their business or investment, it is their decision,” the official said.
Zi grew up in Fujian province, Southeast China. He had set up an internet gaming company before moving to Cambodia around 2010 or 2011. He entered the property business in Phnom Penh.
At that time, Cambodia’s property market was booming. Powerful people and Chinese capital fuelled rapid growth. While some funds came from China’s Belt and Road Initiative, more came from Chinese investors seeking alternatives to rising domestic property costs. Chinese tourism to Cambodia was surging.
Phnom Penh’s skyline changed fast. French colonial villas gave way to towers of glass and steel. Sihanoukville transformed even more dramatically. Casinos, luxury hotels and apartments sprang up. High profits attracted entrepreneurs and speculators.
Zi took extraordinary steps. He renounced Chinese citizenship in 2014 and became a Cambodian citizen. This allowed him to purchase land, subject to a minimum investment or government donation of $250,000. The origin of his funds remains unclear. He later claimed that an anonymous uncle had given him $2 million in 2011 to start his first property company. No proof exists.
He founded Prince Group in 2015 at age 27. In 2018, he acquired a commercial banking license to start Prince Bank. He obtained a Cypriot passport the same year with an investment of $2.5 million. He later gained citizenship in Vanuatu.
Zi launched Cambodia’s third airline and received a license to operate a fourth in 2020. He built luxury malls in Phnom Penh and five-star hotels in Sihanoukville. He began work on a $16 billion “eco-city” named Bay of Lights.
In 2020, King of Cambodia awarded him the highest honour, “Nek Oknha”, requiring a donation of at least $500,000. He became an official advisor to Cambodia’s Minister of Interior Sar Kheng and later advised powerful people, including Hun Sen and his son Hun Manet.
Local media praised him as a philanthropist. He funded scholarships for low-income students and contributed to Cambodia’s COVID-19 response. He remained private, rarely giving public statements.
Journalist Jack Edmovich Davis researched Zi for three years. His report appeared on Radio Free Asia last year. He said, “Those who worked directly with him described him as humble, calm and measured. He avoided ostentation. Even people who later distanced themselves respected him.”
Chen Zi also ran a bank.
The property bubble in Sihanoukville burst in 2019. Online gambling attracted Chinese criminal gangs. Violent conflicts erupted. Tourists fled. The prime minister banned online gambling in August 2019 under pressure from China. Nearly 450,000 Chinese left the city. Many Prince Group properties were vacated.
Zi continued expanding business interests. British authorities say he bought a £12 million mansion and a £9.5 million office building in North London. U.S. officials allege purchases of New York properties, private jets, a superyacht and a Picasso painting. The source of funds is claimed to be online fraud, human trafficking and money laundering.
The United States and the United Kingdom sanctioned Chen Zi, Prince Group, 128 companies and 17 individuals across seven countries. The sanctions freeze related assets. Investigations detail networks of fake companies and cryptocurrency wallets used to obscure money origins.
U.S. officials say, “Prince Group profits from transnational crime. Activities include sextortion, money laundering, fraud and illegal online gambling. The group also traffics forced labour, conducts torture and runs extortion operations at at least 10 scam locations in Cambodia.”
Zi’s online scams involved smartphone networks. China has investigated Prince Group since at least 2020. Beijing formed a task force to probe Cambodia-based online gambling syndicates.
Golden Fortune Science and Technology Park near the Vietnam border is central to investigations. Prince Group denies past involvement in scams and claims no current links. U.S. and U.K. investigators assert ongoing connections.
Davis interviewed people living and working near Golden Fortune. They said beatings and forced participation in online fraud. Davis said, “Chen Zi ran business at scale. Many should have questioned his acquisition of assets in Singapore, London and the U.S. lawyers, bankers and accountants should have stopped him. No one did.”
Now, after sanctions, affiliates are distancing themselves. The Cambodian Central Bank assured depositors access to Prince Bank funds. South Korean authorities seized $64 million in local deposits. Singapore and Thailand are investigating Prince subsidiaries. Three of 18 key individuals under U.S. and U.K. scrutiny reside in Singapore.
Cambodia requested that U.S. and U.K. authorities provide sufficient evidence. For Cambodia’s elite, distancing from Zi is challenging. The country faces pressure over tolerance toward fraudulent businesses.
Zi disappeared after last week’s sanctions announcement. Once among Cambodia’s most powerful people, the enigmatic tycoon has vanished from public view.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
