Internet cafe owner becomes a duke in Cambodia! Chen Zhi relied on Huiwang for Money Laundering of 15 billion USD, facing a crackdown from the UK and the US.

37-year-old Chen Zhi (Vincent), originally from Fujian, China, transformed from an internet cafe owner to the founder of the Cambodian Prince Holding Group, earning the title of “Duke” and serving as an advisor to two prime ministers. However, the U.S. and U.K. judicial departments jointly indicted him, revealing that he engaged in Money Laundering through financial entities such as Huiwang, operating at least 10 scam parks in Cambodia and globally defrauding people through “pig butchering” schemes.

From Internet Café in Fujian to the Rise of Real Estate Tycoon in Phnom Penh

Chen Zhi was born in December 1987 in Fujian, China. In his early years, he was involved in small businesses in China. According to the website of the company he invested in, he displayed business acumen at a young age, assisting in the family business and founding an internet café. Around 2011, Chen Zhi began to look towards Southeast Asia, deciding to move to Cambodia to seek opportunities and immerse himself in the thriving local real estate industry.

After Chen Zhi moved to Cambodia, he seized the opportunity of the local economic opening and the influx of Chinese investment, rapidly expanding his entrepreneurial territory. In 2015, he founded Prince Holding Group and within a few years transformed it into one of the largest business groups in Cambodia. After the establishment of Prince Group, its core business became real estate development, with projects sprawling across various corners of Cambodian cities, from the capital Phnom Penh to significant projects in the coastal province of Sihanoukville. For example, the group's real estate development has transformed Sihanoukville from a quiet seaside town into a bustling city filled with casinos, and Chen Zhi has thus reaped wealth returns amounting to hundreds of millions of dollars.

After achieving success in real estate, he further ventured into the financial industry by founding a microfinance institution to provide banking services, and in 2018, he obtained an official banking license to establish Prince Bank. In just a few years, Chen Zhi transformed from an unknown Chinese youth to a billionaire business tycoon in Cambodia. Today, the businesses controlled by Chen Zhi's Prince Holding Group are diverse, covering real estate, financial services, consumer products, and more. The group's main enterprises include Prince Real Estate Group, Prince Universal Real Estate Group, and Prince Bank.

According to Lianhe Zaobao, the Prince Group's total investment in real estate in Cambodia has reached USD 2 billion, with notable projects including landmark properties such as the Prince Plaza shopping center located in Phnom Penh. Chen Zhihua himself is also actively engaged in charitable activities through the group's charity organization, the Prince Foundation, which describes him as a “respected entrepreneur and well-known philanthropist” on the group's official website. However, behind this seemingly glamorous business empire lies a shocking dark side.

Exposed: The Financial System of Huiwang and the Money Laundering Network in Cambodia

The business empire of the Prince Group superficially covers traditional industries such as real estate and banking, but according to investigations by U.S. law enforcement, it also operates a massive transnational fraud network behind the scenes. The indictment documents from the U.S. Department of Justice reveal in detail the operational model of the Prince Group's fraud empire. Chen Zhi is accused of establishing at least 10 large-scale fraud parks across Cambodia, where he imprisoned and forced migrant workers from various countries to engage in fraudulent activities, causing enormous losses worldwide, especially to the American public, through investment scams such as “pig butchering.”

These parks are like closed “high-tech scam factories,” equipped with “mobile phone farms” containing hundreds or thousands of smartphones and computers, controlling tens of thousands of fake social media accounts for global scamming. In these scam factories, the workers who are trafficked actually live like prisoners: they are held captive within the parks, facing threats of violence or even torture if they refuse to participate in the scams. U.S. Assistant Attorney General John Eisenberg described this criminal empire as being “built on human suffering,” with investigations confirming its involvement in human trafficking, forcing workers to be confined in prison-like camps to carry out scams.

Three Main Channels of Money Laundering Networks in Cambodia:

Financial entities such as Huiwang: Through Prince Bank and affiliated financial institutions, converting proceeds from fraud into legitimate assets, utilizing Cambodia's loose financial regulatory environment for large-scale capital turnover.

Cryptocurrency Mining and Trading: Utilizing its online gambling platform and cryptocurrency mining business to launder money, ultimately accumulating approximately 120,000 Bitcoins, worth over $15 billion.

Offshore Shell Companies: Establishing shell companies in offshore financial centers such as the British Virgin Islands to disguise black money in overseas real estate investments.

The U.S. Department of Justice pointed out that Chen Zhi is very aware of the principle that money can make the world go round. Therefore, he and his accomplices ensured that the fraud industry was not disturbed through political influence and bribery, providing benefits to corrupt officials in exchange for protection. All of this has transformed the Prince Group into what the U.S. government calls “one of the largest transnational criminal organizations in Asia.”

Duke Honorary Title and Deeply Embedded Political and Business Relations in Power Hierarchy

Chen Zhi is not only a business giant in Cambodia, but has also deeply integrated into the power circles. After naturalizing as a Cambodian citizen, he has fully utilized his wealth and connections to win the government's recognition and favor. In 2017, he was appointed as an advisor to the Ministry of Interior by royal decree, with a rank equivalent to that of high-ranking government officials. Soon after, it was reported that he became a personal advisor to then-Prime Minister Hun Sen, providing direct consultation to the highest leadership. Even after Hun Sen stepped down in 2023 and his son Hun Manet took over as Prime Minister, Chen Zhi is still said to have retained his advisory position, demonstrating his continuous influence in both the old and new regimes.

In July 2020, Chen Zhi was awarded the honorary title of “Duke” by the government for his contributions to Cambodia's economic development, with the medal personally presented by Prime Minister Hun Sen. This honorary title holds a very high status in Cambodia and is one of the highest civilian honors conferred by the Cambodian royal family to civilians who have made significant donations and social contributions, formally granted by royal decree. From then on, Chen Zhi was bestowed the prestigious title in official occasions, further solidifying his prominent status in Cambodian society.

At this time, Chen Zhi was at the peak of his power, holding vast wealth, backed by government authority, and further enhanced by the aura of charity and academia. For a time, he was well-known throughout Cambodia. He was deeply embedded in the Cambodian elite and received good protection, highlighting the country's role as a hotbed for online scams. This “honeymoon” relationship between politics and business allowed the prince group's money laundering operations in Cambodia to go undisturbed for a long time, with scam parks operating openly under the government's watch.

US-UK Joint Sanctions and $15 Billion Bitcoin Seizure

The US and UK governments have imposed joint sanctions on Chen Zhi and his Prince Group. The US Department of Justice has charged him with telecommunications fraud and Money Laundering, and has seized more than $15 billion worth of Bitcoin. This is one of the largest cryptocurrency seizure actions in the history of the US Department of Justice, with approximately 120,000 Bitcoins confiscated by the US government.

The UK Foreign, Commonwealth & Development Office (FCDO) announced on the same day sanctions against Chen Zhi, freezing his high-value assets in London, including a luxury mansion, an office worth approximately £100 million on Fenchurch Street, and multiple apartments. These assets are believed to be properties acquired illegally through a Cambodian Money Laundering network. The UK government stated that these sanctions are part of coordinated actions with the United States aimed at combating transnational organized crime.

To launder illegal proceeds, the group also conducted large-scale Money Laundering operations in Cambodia through affiliated companies. Ironically, it was these cryptocurrency mining and trading activities that set the stage for the later seizure of $15 billion worth of Bitcoin by the United States. The transparency and traceability of blockchain allowed U.S. law enforcement to track the flow of these funds, ultimately identifying and seizing this huge amount of crypto assets.

The Erosion of Cambodia's Safe Haven Status and Its Response to International Pressure

However, after the storm of sanctions from the US and UK, this “honeymoon” relationship between politics and business is facing a test. The Cambodian government has adopted a more cautious attitude after the incident was exposed, with the Ministry of Interior spokesperson emphasizing that the Prince Group has “always complied with the law” in its operations in Cambodia, and there is no difference in treatment compared to other large investment enterprises. Regarding Chen Zhi's acquisition of Cambodian citizenship, officials also stated that this is the result of a legal procedure.

At the same time, the authorities indicated that they would cooperate with formal requests based on evidence from other countries, stating that they “will not shelter lawbreakers.” However, it is worth noting that as of now, the Cambodian government has not filed charges or initiated investigations regarding Chen Zhi or the Prince Group's illegal activities within the country. Some analysts believe that this reflects the deep network of relationships Chen Zhi built in Cambodia in the past, which continues to exert influence, leading to a cautious attitude in the local response to this case.

However, as international pressure increases, Chen Zhi's once favorable “safe haven” status in Cambodia may be difficult to maintain. The U.S. Department of Justice has submitted an extradition request to the Cambodian government, while the UK's asset freezing measures have also cut off Chen Zhi's funding channels overseas. The money laundering network in Cambodia involving financial entities like Huibang is facing the risk of collapse under international scrutiny.