In a recently unsealed indictment, federal prosecutors in Brooklyn have charged Chen Zhi, the chairman of Prince Holding Group, with conspiracy to commit wire fraud and money laundering. Concurrently, U.S. and British authorities have enacted sanctions against Chen’s company, which operates in real estate and financial services, with the Treasury Department labeling it a transnational criminal organization.
Chen, 38, is accused of endorsing violent measures against workers, facilitating bribes to foreign officials, and utilizing his other enterprises—like online gambling and cryptocurrency mining—to launder profits derived from illegal activities. According to Assistant Attorney General John Eisenberg, Chen was the “mastermind behind a sprawling cyberfraud empire.” U.S. Attorney Joseph Nocella characterized this operation as “one of the largest investment fraud schemes in history.” At one point, the indictment claims Chen boasted that the so-called “pig butchering” scam was generating $30 million daily.
Authorities Identify a Major Player in a Growing Scam Network
The Treasury Department has reported that last year, American citizens lost at least $10 billion to scams originating from Southeast Asia, marking a 66% increase from 2023. They have identified Prince Holding Group as a “dominant player” in this fraudulent landscape. Chinese authorities have been investigating the company for cyber scams and money laundering since at least 2020, as indicated by court documents reviewed by the U.S. Institute of Peace.
As of Tuesday, Chen, who is originally from China and goes by the name “Vincent,” remains at large. If found guilty, he could face a prison sentence of up to 40 years. The U.S. may also potentially use the 127,271 bitcoins it seized to compensate victims, with the current value of each coin around $113,000, subject to market fluctuations.
Messages seeking comments were sent to Gabriel Tan, a spokesperson for Prince Holding Group. The company’s website claims it “adheres to global business standards.” Similarly, Pen Bona, a representative of the Cambodian government, did not respond immediately to requests for comment.
Jacob Daniel Sims, a transnational crime expert and visiting fellow at Harvard University’s Asia Center, described Prince Holding Group as “an essential part of the scaffolding that makes global cyber-scamming possible,” asserting that Chen serves as a “central pillar” in the criminal economy closely linked with Cambodia’s ruling regime. Chen has acted as an advisor to Prime Minister Hun Manet and his father, former Prime Minister Hun Sen, and has been bestowed with the title “neak oknha,” akin to being an English lord.
“While the indictment and sanctions don’t instantaneously dismantle these networks, they dramatically alter the risk assessment,” Sims noted. Such actions compel “every global bank, real estate firm, and investor to reconsider dealings with Cambodian elite funds.” Last year, the U.S. and U.K. imposed sanctions on Ly Yong Phat, a prominent figure within the ruling Cambodian People’s Party, following his involvement in allegations of forced labor, human trafficking, and online scams.
Allegations of Forced Labor and Extreme Violence
The indictment against Chen outlines how Prince Holding Group constructed at least 10 compounds in Cambodia where workers—often migrants coerced into servitude—were compelled to reach out to thousands of victims via social media or online messaging. They built relationships with these individuals to persuade them to invest cryptocurrency, promising substantial returns. However, prosecutors assert that it was all a facade; the funds were redirected into various Prince Holding Group businesses and shell corporations, financing lavish travel, entertainment, luxury timepieces, vacation homes, rare artworks, and even a Rolex for an executive’s spouse.
One victim reportedly lost over $400,000 in cryptocurrency due to the scam. The compounds operated as forced labor camps, featuring dormitories surrounded by high walls and barbed wire, and automated call centers equipped with hundreds of mobile phones managing tens of thousands of fraudulent social media accounts. One compound was linked to Prince Holding Group’s Jinbei Casino Hotel, while another was referred to as “Golden Fortune.”
The Treasury Department’s sanctions statement indicated that workers at these facilities were held against their will, isolated, and sometimes beaten after being promised high-paying jobs in fields like customer service or tech support. Graphic photographs included in Chen’s indictment depicted a man with a severe facial injury, numerous individuals bound on the ground, and another with visible lash marks.
Chen allegedly approved at least one act of violence against a worker suspected of causing issues at a compound but cautioned against excessive brutality. Reports from those who escaped the Golden Fortune compound detailed workers being “beaten until they are barely alive,” as stated by the Treasury Department.
In 2023, the United Nations estimated that approximately 100,000 individuals were compelled to engage in online scams in Cambodia, with an additional 120,000 in Myanmar and tens of thousands more in Thailand, Laos, and the Philippines.
“These measures won’t eradicate the scam economy overnight,” Sims commented. “However, they diminish its operational capacity and deliver a notable message to regimes like Cambodia’s that elite crime as a governance strategy comes with significant risks.”
