Cambodia: Fraud and Forced Labor – The Prince Group Case Shakes Transnational Crime

On October 14, 2025, a major judicial revelation shook Phnom Penh and the international scene: the president of the Cambodian giant Prince Group, Chen Zhi, was formally charged in the United States for orchestrating a vast cryptocurrency fraud network based on forced labor camps in Cambodia.

Chen Zhi

This case exposes a transnational crime system mixing scams, human trafficking, torture, and money laundering, with a global impact estimated at several billion dollars.

An Unprecedented Cryptocurrency Fraud

Chen Zhi, 38, is accused by the Brooklyn federal prosecutor’s office of having led, via Prince Group, a massive fraud empire based on the scheme called "pig butchering" (literally "fattening the pig"). This scheme involves establishing fake relationships via social networks to convince victims, often in the United States and worldwide, to invest in cryptocurrencies on fictitious platforms. Victims are lured by fraudulent displays of profits before their funds are entirely stolen.

According to judicial documents, the forced labor camps exploited by Prince Group included at least ten sites secured by high walls and barbed wire, where victims were held against their will. These "fraud soldiers" were forced to make automated calls coordinated by thousands of mobile phones, distributing hundreds of thousands of fake social media profiles to attract victims.

These centers notably housed "phone farms" with up to 1,250 devices, coordinating more than 76,000 social accounts to multiply fraudulent interactions. The fraud reportedly generated daily revenues exceeding 30 million dollars, according to an alleged accomplice.

Forced Labor, Torture and Extortion

Beyond the fraud, the case reveals the inhumane conditions inflicted on forced workers, who lived in overcrowded, isolated dormitories, subjected to physical violence and constant threats. Leaked photographs show serious injuries, men tied by their hands to the ground, and lash marks revealing a regime of terror.

Prosecutors also mention that Chen Zhi personally controlled and ordered at least some acts of violence to maintain discipline within the camps. Pressured workers were forced to attract new victims themselves, perpetuating the vicious circle of crime.

A Vast Network

Prince Group, a multinational based in Phnom Penh, allegedly extended its reach to more than 30 countries. Under Chen Zhi’s leadership, it created a myriad of shell companies, holdings, and subsidiaries worldwide, allowing illegal income to mix with the legitimate economy, according to the U.S. Treasury Department.

In addition to fraud and forced labor accusations, the case highlights corruption links at the highest levels, with bribes paid to officials to avoid criminal investigations. Lavish expenses funded with fraudulent funds include luxury goods, rare watches, millionaire yachts, and real estate properties, notably in the United Kingdom, where several assets of the ruling family have been frozen.

A Historic Operation: Seizure of 15 Billion Dollars in Bitcoin

Marking an unprecedented judicial strike, American authorities seized approximately 127,000 bitcoins, valued at nearly 15 billion dollars, virtual assets obtained through fraud orchestrated by the company.

This seizure is the largest ever carried out in the history of the U.S. Department of Justice. It attests to the exceptional scale and sophistication of the criminal network, described as "the most extensive transnational criminal organization in Asia" by authorities.

International Reactions and Consequences

The United States, in cooperation with the United Kingdom, has also imposed major economic sanctions against Chen Zhi, his family, and several entities associated with Prince Group. Asset freezes and travel bans have been applied to properties and holdings, while calls for increased vigilance are underway to counter the rise of cryptocurrency fraud in the region.

This case highlights an alarming trend: the increasing use of technology to exploit vulnerable people through online scams in forced labor camps. Authorities estimate that at least 100,000 people are currently exploited under such conditions in Southeast Asia, notably in Cambodia, Myanmar, Thailand, Laos, and the Philippines.

A Long and Complex Battle

The FBI and the U.S. Department of Justice see this operation as a decisive step in the fight against organized cybercrime but also emphasize the difficulties in dismantling these networks, where leaders often remain elusive.

The president of Prince Group, Chen Zhi, remains at large and is the subject of an active international search. The case also sadly reveals the dark side of globalization, where technology and crime merge to exploit thousands of people on an unprecedented scale.

The indictment of Chen Zhi and the judicial dismantling of the Prince Group empire mark a decisive turning point in the global fight against large-scale cyberfraud and the human exploitation that sustains it. This scandal underscores the urgent need for strengthened international cooperation to decrypt and break these transnational criminal networks that thrive at the expense of victims and world economies.

Sources: U.S. Department of Justice, U.S. Treasury, BBC, Bloomberg, CNN, ABC News, FR24, TRM Labs, MLex, Chainalysis, Kiripost, Washington Post, CNBC.