Cambodia Responds to Chen Zhi Sanctions Over Online Scams

Cambodia’s government is responding to recent sanctions imposed by the U.S. and the U.K. against Prince Holding Group and its chairman, Chen Zhi.

These sanctions accuse the Cambodian conglomerate of running major online scams and using forced labor across Southeast Asia.

The government of Cambodia is now saying that it hopes the U.S. and Britain have enough evidence to back their claims.

Cambodia’s Response to the Allegations

In a statement on Wednesday, Touch Sokhak, a spokesman for Cambodia’s Ministry of Interior, explained that Prince Holding Group has followed all legal requirements to operate in Cambodia.

He also said that Chen Zhi, who is originally from China, received Cambodian citizenship legally.

Sokhak emphasized that Cambodia has no intention of protecting anyone who breaks the law, but he made it clear that the Cambodian government itself has not accused Chen or his company of any wrongdoing.

“We do not protect individuals who violate the law,” Sokhak said, but added that Cambodia would cooperate with other countries if there was a formal request with strong evidence to support it.

“We just hope there will be enough proof to back up their claims,” he told The Associated Press.

The Sanctions and Accusations

On Tuesday, the U.S. Treasury Department and the U.K. Foreign Office imposed joint sanctions on Chen Zhi and his business empire.

They accuse Chen of running a transnational criminal organization that has scammed people worldwide and used trafficked workers in illegal operations across Southeast Asia.

The sanctions followed the seizure of over $14 billion in bitcoin and charges against Chen for wire fraud and money laundering.

Chen, aged 38, is accused of allowing violence against workers, paying bribes to foreign officials, and using businesses like online gambling and cryptocurrency mining to launder money. U.S. Attorney Joseph Nocella called this operation “one of the largest investment fraud schemes in history.”

The Seized Assets and Properties

The sanctions also froze Chen’s assets in the U.K., including a $13.9 million mansion in North London and a $116 million office building in the City of London.

These actions highlight the global reach of the network linked to Prince Holding Group.

John Wojcik, a senior expert at Infoblox and a former investigator for the U.N. Office on Drugs and Crime, said this joint action by the U.S. and U.K. is a major blow to one of the biggest cybercrime and money laundering operations in the region.

However, he warned that to fully shut down these networks, more must be done to dismantle their online infrastructure.

“Unless authorities can track and break down their online operations — the websites, servers, and payment systems that support them — these scammers will just regroup and keep going,” Wojcik said.

The Alleged Operations in Cambodia

The U.S. and U.K. governments allege that Chen Zhi’s network ran scam centers in Cambodia, where trafficked foreign nationals were forced to carry out “romance” scams and cryptocurrency investment frauds.

In these scams, victims were tricked into investing their life savings into fake trading platforms, while the trafficked workers were forced to carry out the scams under threat of violence.

The Cambodian Government’s Role

Experts like Mark Taylor, who used to work on human trafficking issues in Cambodia for the nonprofit Winrock International, say that Chen Zhi is deeply connected with Cambodia’s elite and has significant protection from the government.

He pointed out that Cambodia has been a safe hub for these kinds of online scams to thrive. Taylor also noted that Cambodia is seen as a center for money laundering in the region.

Cambodia’s Willingness to Cooperate

While the Cambodian government has not accused Chen Zhi or his company of any crimes, Touch Sokhak said they would cooperate fully with other countries if there is enough evidence.

Cambodia has been the base for many scam centers, with over 200 documented by the research group Cyber Scam Monitor.

The group’s findings show that Cambodia has played a key role in enabling these illegal operations, with many workers forced to participate in scams.

“We will cooperate in every way possible with other countries if there is sufficient evidence,” Touch Sokhak assured.

As the U.S. and U.K. continue their pursuit of Chen Zhi and Prince Holding Group, Cambodia is caught between offering cooperation and protecting its legal framework.

Chen Zhi, who remains on the run, faces up to 40 years in prison if convicted in the U.S.

The outcome of this case could have far-reaching consequences, not only for Cambodia but for global efforts to combat online scams and human trafficking.

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Saleem Mubarak: The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.

He also writes humorous articles about real estate, investors, and realtors.