Alleged scam kingpin Chen Zhi arrested in Cambodia, sent to China
Cambodia’s central bank appoints an accounting firm Morisonkak MKA to liquidate Prince Bank
[PHNOM PENH] Chen Zhi, the alleged kingpin of an international scam syndicate who faces charges in the US, has been arrested in Cambodia and deported to China for investigations.
Chen was one of three Chinese nationals detained and extradited to China following several months of joint cooperation between Cambodian and Chinese law enforcement authorities, Cambodia’s Minister of Information Neth Pheaktra said on Wednesday (Jan 7) in response to a query from Bloomberg News.
The arrest followed heightened international pressure on Chen after US and UK authorities imposed sanctions on the 38-year-old over his alleged role in building a network of scam compounds in Cambodia that relied on enslaved labour.
In October, the US unsealed a federal indictment accusing Chen of running what prosecutors described as a “sprawling cyber-fraud empire,” triggering the seizure of Bitcoin then worth about US$15 billion in what they called the largest forfeiture action in history. At the time, US authorities said Chen was at large.
In a separate statement, Cambodia’s Ministry of Interior said Chen was arrested on Jan six along with Xu Ji Liang and Shao Ji Hui. They were extradited “pursuant to a request” from Chinese authorities “within the scope of cooperation in combating transnational crime.” Chen’s Cambodian citizenship was revoked in December, the ministry said.
The decision to extradite Chen to China came despite him also being wanted by US authorities. The move followed high-level diplomatic engagements involving the two countries, including a December meeting in Yunnan province between Chinese Foreign Minister Wang Yi and his Cambodian counterpart Prak Sokhonn.
China has been playing a role as a mediator in a border dispute between Cambodia and Thailand, in competition with the US as the two superpowers vie for influence in South-east Asia. Thailand framed the deadly clash in part as a battle against scam centres, which its military targeted in bombing runs before a ceasefire agreement was reached late last month.
“It is possible that during recent high-level meetings the issue of Chen was raised,” said Mark Bo, a researcher and co-author of the book Scam: Inside South-east Asia’s Cybercrime Compounds, pointing to the role China played in the ceasefire. “It’s safe to assume that China would much rather have Chen in their custody than wait for the US to capture him.”
Initially after the US and UK sanctions were imposed, Cambodia’s Interior Ministry spokesman Touch Sokhak told the Associated Press that Prince had met all legal requirements to operate in Cambodia and that the government was not accusing Chen or the group of wrongdoing. Chen was previously an advisor to key political figures in Cambodia including former longtime premier Hun Sen and his successor and son Hun Manet.
“It took us a while to investigate,” said Cambodian Deputy Prime Minister Sun Chanthol in an interview Thursday, saying the country needed a new law to come into effect before it could revoke Chen’s citizenship in December. “When we had all the evidence, we took action.”
He said he was “not aware” when asked if the US has requested to extradite Chen, and said the country cannot afford to choose sides and “must be friends with every country in the world.”
China’s Foreign Ministry spokeswoman Mao Ning on Thursday said during a regular press briefing that “for quite some time” Beijing “has been actively working with countries including Cambodia to crack down on online gambling as well as telecom fraud and “achieved notable outcomes.” She added that authorities in China will release further information on the matter.
In a sign of the continuing change in Chen’s fortunes, Cambodia’s central bank announced on Thursday that it had appointed an accounting firm Morisonkak MKA to liquidate Prince Bank, a financial institution controlled by Chen sanctioned by the US.
Matthew Schwartz, a lawyer at Boies Schiller Flexner who is representing Chen in the US, did not immediately respond to email and voicemails seeking comment. A spokesperson for Brooklyn US Attorney Joseph Nocella, whose office is prosecuting Chen, declined to comment.
The Chinese government had largely remained silent on Western allegations against Chen, despite the action prompting a wave of crackdowns by other Asian governments including Singapore and Thailand against Chen, his associates and firms. Chinese courts have prosecuted lower-level associates of Prince in recent years.
US prosecutors alleged that Chen and his Prince Holding Group stole from victims of online “pig butchering” operations in the US and other countries, and laundered billions of US dollars in illicit funds. BLOOMBERG
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