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China Sets Feb. 15 Surrender Deadline in Chen Zhi Cyber-Fraud Case

The step follows Cambodia’s choice to send the Prince Group tycoon to China despite active U.S. charges after massive asset seizures.

Overview

  • China’s Ministry of Public Security urged alleged associates of Chen Zhi to surrender and truthfully confess by Feb. 15 in exchange for lighter sentences, warning of full pursuit for those who do not.
  • Cambodia deported Chen to China last week rather than to jurisdictions with active cases such as the United States or the United Kingdom, and Chinese authorities have confirmed he is in custody.
  • U.S. prosecutors have indicted Chen on fraud and money-laundering charges tied to an alleged multibillion-dollar cyber-fraud network centered in Cambodia.
  • The U.S. Department of Justice says it seized more than $14 billion in bitcoin linked to Prince Group, and U.S. and UK authorities have imposed sanctions on Chen and affiliated entities.
  • U.S. filings allege the enterprise used forced-labor compounds in Cambodia, where trafficked workers were confined in prison-like conditions to run online scams.