Man Accused of Stealing Billions in Cryptocurrency Scam Captured Abroad
Chen Zhi, a key figure accused of orchestrating one of the largest cryptocurrency frauds in recent history, has been arrested in Cambodia and extradited to China, authorities announced on January 7, 2026. The arrest follows allegations that Chen led an extensive criminal network that exploited thousands of trafficked workers across Southeast Asia to execute a massive cryptocurrency scam defrauding victims worldwide of billions of dollars.
According to Cambodian officials, Chen, 38, holds multiple citizenships including Chinese and Cambodian, although his Cambodian passport has been revoked. He was apprehended in Cambodia, where he established his operations through the Prince Group—a holding company that publicly appeared to focus on luxury real estate ventures but allegedly served as a front for fraudulent activities.
U.S. federal prosecutors from the Eastern District of New York issued an indictment against Chen in October 2025, charging him with masterminding the scheme in which victims were persuaded to invest or transfer money via cryptocurrency under false pretenses. The prosecutors disclosed that they had seized Bitcoin assets valued at approximately $15 billion, believed to be proceeds of Chen’s illegal operation. Investigations revealed that one subgroup tied to Chen’s network targeted more than 250 victims in Brooklyn and Queens, resulting in losses exceeding $18 million. The scheme’s impact extended beyond the U.S., with victims identified in nations such as Russia, Taiwan, and Vietnam.
Importantly, Chen’s arrest in Cambodia and subsequent extradition to China marks a critical development but also presents legal complications. The United States lacks an extradition treaty with China, making it uncertain if Chen will face trial in an American federal court. Cambodian authorities noted that the extradition was achieved following months of cooperation between the Cambodian and Chinese governments.
Efforts to obtain comments from representatives of Cambodia’s Ministry of Information, the Chinese Foreign Ministry, and Chen’s legal counsel were unsuccessful at the time of this report. A spokesperson for the U.S. Attorney’s Office in Brooklyn declined to comment on the ongoing case.
The case against Chen Zhi underscores the complex challenges law enforcement agencies face in addressing transnational cryptocurrency crimes, particularly when they involve forced labor and human trafficking elements. It also highlights the difficulties of prosecuting such cases across jurisdictions with differing political and legal relationships.
As the situation develops, authorities and affected victims await further proceedings that will determine whether Chen will be held accountable for the extensive fraud and its global repercussions.