$14 Billion Crypto Phantom: Chen Zi is 37 years previous however faces accusations of masterminding an enormous cyber-fraud empire. The scheme has ensnared victims throughout the globe. With skinny beard and a boyish face, he seems youthful than his age. Regardless of his comparatively younger age, he amassed wealth at an astonishing tempo.
Final week, the U.S. Division of Justice filed fees towards him in Cambodia. Authorities declare he stole billions in cryptocurrency from victims worldwide.
The U.S. Treasury allegedly seized Bitcoin valued at almost $14 billion. Officers say the belongings are linked to Zi. That is the most important cryptocurrency seizure in historical past.
Chen Zi’s firm, Cambodia-based Prince Group, describes him on its web site as a “revered entrepreneur”.
Authorities sources instructed Moneycontrol that the accusations have been the results of years of investigation. A senior trade official confirmed that no public warnings had been issued. “If somebody reduces their enterprise or funding, it’s their choice,” the official mentioned.
Zi grew up in Fujian province, Southeast China. He had arrange an web gaming firm earlier than shifting to Cambodia round 2010 or 2011. He entered the property enterprise in Phnom Penh.
At the moment, Cambodia’s property market was booming. Highly effective individuals and Chinese language capital fuelled fast development. Whereas some funds got here from China’s Belt and Street Initiative, extra got here from Chinese language buyers searching for alternate options to rising home property prices. Chinese language tourism to Cambodia was surging.
Phnom Penh’s skyline modified quick. French colonial villas gave technique to towers of glass and metal. Sihanoukville reworked much more dramatically. Casinos, luxurious motels and residences sprang up. Excessive income attracted entrepreneurs and speculators.
Zi took extraordinary steps. He renounced Chinese language citizenship in 2014 and have become a Cambodian citizen. This allowed him to buy land, topic to a minimal funding or authorities donation of $250,000. The origin of his funds stays unclear. He later claimed that an nameless uncle had given him $2 million in 2011 to start out his first property firm. No proof exists.
He based Prince Group in 2015 at age 27. In 2018, he acquired a business banking license to start out Prince Financial institution. He obtained a Cypriot passport the identical yr with an funding of $2.5 million. He later gained citizenship in Vanuatu.
Zi launched Cambodia’s third airline and acquired a license to function a fourth in 2020. He constructed luxurious malls in Phnom Penh and five-star motels in Sihanoukville. He started work on a $16 billion “eco-city” named Bay of Lights.
In 2020, King of Cambodia awarded him the very best honour, “Nek Oknha”, requiring a donation of not less than $500,000. He turned an official advisor to Cambodia’s Minister of Inside Sar Kheng and later suggested highly effective individuals, together with Hun Sen and his son Hun Manet.
Native media praised him as a philanthropist. He funded scholarships for low-income college students and contributed to Cambodia’s COVID-19 response. He remained personal, not often giving public statements.
Journalist Jack Edmovich Davis researched Zi for 3 years. His report appeared on Radio Free Asia final yr. He mentioned, “Those that labored straight with him described him as humble, calm and measured. He prevented ostentation. Even individuals who later distanced themselves revered him.”
Chen Zi additionally ran a financial institution.
The property bubble in Sihanoukville burst in 2019. On-line playing attracted Chinese language felony gangs. Violent conflicts erupted. Vacationers fled. The prime minister banned on-line playing in August 2019 below strain from China. Almost 450,000 Chinese language left the town. Many Prince Group properties have been vacated.
Zi continued increasing enterprise pursuits. British authorities say he purchased a £12 million mansion and a £9.5 million workplace constructing in North London. U.S. officers allege purchases of New York properties, personal jets, a superyacht and a Picasso portray. The supply of funds is claimed to be on-line fraud, human trafficking and cash laundering.
The US and the UK sanctioned Chen Zi, Prince Group, 128 corporations and 17 people throughout seven international locations. The sanctions freeze associated belongings. Investigations element networks of pretend corporations and cryptocurrency wallets used to obscure cash origins.
U.S. officers say, “Prince Group income from transnational crime. Actions embody sextortion, cash laundering, fraud and unlawful on-line playing. The group additionally traffics pressured labour, conducts torture and runs extortion operations at not less than 10 rip-off areas in Cambodia.”
Zi’s on-line scams concerned smartphone networks. China has investigated Prince Group since not less than 2020. Beijing fashioned a activity power to probe Cambodia-based on-line playing syndicates.
Golden Fortune Science and Know-how Park close to the Vietnam border is central to investigations. Prince Group denies previous involvement in scams and claims no present hyperlinks. U.S. and U.Ok. investigators assert ongoing connections.
Davis interviewed individuals dwelling and dealing close to Golden Fortune. They mentioned beatings and compelled participation in on-line fraud. Davis mentioned, “Chen Zi ran enterprise at scale. Many ought to have questioned his acquisition of belongings in Singapore, London and the U.S. legal professionals, bankers and accountants ought to have stopped him. Nobody did.”
Now, after sanctions, associates are distancing themselves. The Cambodian Central Financial institution assured depositors entry to Prince Financial institution funds. South Korean authorities seized $64 million in native deposits. Singapore and Thailand are investigating Prince subsidiaries. Three of 18 key people below U.S. and U.Ok. scrutiny reside in Singapore.
Cambodia requested that U.S. and U.Ok. authorities present enough proof. For Cambodia’s elite, distancing from Zi is difficult. The nation faces strain over tolerance towards fraudulent companies.
Zi disappeared after final week’s sanctions announcement. As soon as amongst Cambodia’s strongest individuals, the enigmatic tycoon has vanished from public view.