Cambodian police have cracked down on an illegal fraud operation in Phnom Penh suspected of investment fraud, according to Sveriges Radio Nyheter. The Jin Bei casino in Sihanoukville, Cambodia, is now closed with its signage covered and a Chinese sign reading 'under renovation', as reported by The Guardian. Cambodian lawmakers on Monday adopted legislation targeting online scam operations with up to life in prison after the government pledged to shut them down by the end of April, according to The Independent.
US prosecutors have accused Jin Bei of running scam compounds on behalf of Prince Group, according to The Guardian. An October indictment alleged Prince Group was one of Asia's largest transnational criminal organizations, as reported by the same outlet. US prosecutors in October unveiled conspiracy charges against Chen Zhi, alleging he masterminded a multinational fraud network using his other businesses to launder its profits, according to The Independent.
The recent allegations are baseless and appear aimed at justifying the unlawful seizure of assets worth billions of dollars. Nonetheless, these unfounded allegations, amplified by media reports repeating these and other unverified claims, have caused undue harm to thousands of innocent employees, partners, and communities who the Group serves.
Prince Group founder Chen Zhi was arrested in Cambodia in January, according to The Guardian. Businessman Li Xiong has been extradited from Cambodia to China, as reported by The Independent. Li Xiong was arrested in Cambodia by a joint task force following a months-long investigation, according to the same source.
Both Chen Zhi and Li Xiong had their Cambodian national status canceled before being sent to China, The Independent reports. Li Xiong is a former chairman of the Huione Group, according to The Independent. He is suspected of involvement in offenses including operating gambling dens, fraud, unlawful business operations, and concealing and disguising the proceeds of crime, as reported by the same outlet.
The Group remains committed to integrity, responsible investment, and sustainable economic growth across the region.
Li Xiong is believed to be a high-ranking member of a criminal syndicate led by Chen Zhi, The Independent states. Chen Zhi is accused of running an online scam operation, according to The Independent. Chen Zhi claimed he received $30 million a day from the scams, according to the US indictment reported by The Independent.
The Huione Group has been accused by the US Treasury Department of laundering billions of dollars for transnational criminal organizations, including North Korean hackers and Southeast Asian scam networks, according to The Independent. The US Treasury Department designated Huione a 'primary money-laundering concern,' restricting any connections to the American financial system and prohibiting US financial institutions from handling its business, as reported by the same source. Huione Pay, the digital banking arm of Huione Group, had its license revoked by the National Bank of Cambodia due to noncompliance and its role in an 'illicit online marketplace' that facilitated billions in criminal transactions, according to The Independent.
We are confident that when the facts come out, the Prince Group and its chairman will be fully exonerated.
Prince Group categorically rejects that it or its founder, Chen Zhi, has engaged in any unlawful activity. According to the company, the recent allegations are baseless and appear aimed at justifying the unlawful seizure of assets worth billions of dollars, and it is confident that when the facts come out, the Prince Group and its chairman will be fully exonerated. This stands in direct contrast to US prosecutors' accusations that Prince Group is one of Asia's largest transnational criminal organizations, involved in fraud, scam compounds, and money laundering.
The specific evidence US prosecutors have against Chen Zhi and Prince Group regarding the alleged scam operations and money laundering has not been publicly detailed in full. Similarly, the current legal status of Chen Zhi and Li Xiong in China following their extradition remains unclear. Further unknowns include how extensive the alleged network of scam compounds in Cambodia truly is, and how many victims are involved worldwide.
The role, if any, that Cambodian political elites played in enabling or benefiting from these alleged scam operations is also not publicly established. Additionally, the impact the new Cambodian legislation will have on existing scam operations, and whether the government will meet its pledge to shut them down by the end of April, remains to be seen. These developments carry significant implications for Cambodia's international reputation, particularly regarding its ability to police complex financial crimes and cooperate with foreign law enforcement.
The global reach of the alleged criminal networks, as described by US authorities, suggests that the crackdown has relevance far beyond Cambodia's borders, affecting financial systems and victims worldwide.