One of Cambodia’s largest conglomerates, Prince Holding Group, is in the spotlight after the US government accused its founder of masterminding a massive cryptocurrency scam which involved forced labour camps.
The US Department of Justice said on Tuesday (Oct 14) that Cambodian national Chen Zhi was charged in New York with wire fraud conspiracy and money laundering.
He and unnamed co-conspirators allegedly exploited forced labour to dupe would-be investors, using the proceeds to purchase yachts, jets and a Picasso painting.
More than US$14 billion in bitcoin has been seized, with FBI director Kash Patel calling it “one of the largest financial fraud takedowns in history”.
Chen’s businesses were also sanctioned by US and UK authorities as part of a joint operation against a “transnational criminal organisation”.
Here’s what we know about the tycoon and his company.
WHO IS CHEN ZHI AND PRINCE GROUP?
Chen Zhi, 37, is the founding chairman of the Cambodian conglomerate Prince Holding Group, which has interests in various sectors such as real estate, financial services and consumer businesses.
Its key business units are Prince Real Estate Group, Prince Huan Yu Real Estate Group and Prince Bank.
The group boasts over US$2 billion worth of projects in Cambodia, including a large shopping mall, Prince Plaza, in the capital Phnom Penh.
According to media reports, Chen was born in China. He holds both Cambodian and British citizenship.
On the company’s website, Chen is described as a “respected entrepreneur and renowned philanthropist within the Cambodian business community”. It stated that he takes part in various charitable activities through the group’s charitable arm, Prince Foundation.
Chen has served as an adviser to Prime Minister Hun Manet and his father, former leader Hun Sen, and holds the government-bestowed honorific “Neak Oknha”, meaning “prominent tycoon”.
WHAT ARE THE ALLEGATIONS AGAINST HIM?
Chen remains at large.
According to US prosecutors, Chen, also known as Vincent, was the mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella, growing it into “one of Asia’s largest transnational criminal organisations.”
These fraud schemes, known as “pig butchering” scams, allegedly cheated victims around the world of billions of dollars.
Chen’s indictment stated that Prince Holding Group built at least 10 compounds in Cambodia where workers – often migrants held against their will – were forced to contact thousands of victims through social media or online messaging platforms, build rapport and entice them to transfer cryptocurrency with hopes of big investment returns.
“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.
At one point, prosecutors said, Chen bragged that the so-called “pig butchering” scam was pulling in US$30 million a day.
The US Department of Justice said Chen and his unnamed co-conspirators used some of the scam proceeds for luxury travel and entertainment, as well as to make extravagant purchases such as watches, yachts and private jets, vacation homes, high-end collectables and rare artwork.
If convicted, Chen faces a maximum penalty of 40 years in prison.
Both Chen and the company have previously denied allegations of criminality.
https://www.channelnewsasia.com/asia/prince-holding-group-chen-zhi-us-crypto-scam-what-we-know-5405601
