Cambodia Transfers Chen Zhi to China as U.S. Pursues 127,271-BTC Forfeiture

Cambodian authorities carried out the arrest and transfer of Prince Group founder Chen Zhi to China on January 6, 2026, after a request from Chinese authorities and months of joint investigative cooperation. Cambodia publicly announced the operation the following day. The transfer came while Chen remained charged in the United States over allegations that he directed forced-labor scam compounds involved in large-scale cryptocurrency investment fraud.

The Bitcoin connection was unusually concrete. In October 2025, the U.S. Justice Department had filed a civil forfeiture complaint against approximately 127,271 BTC, then valued at about $15 billion, alleging that the coins were proceeds and instrumentalities of Chen's fraud and money-laundering schemes. DOJ described it as the largest forfeiture action in the department's history and said the Bitcoin was already in U.S. custody.

Chen's transfer to China added a geopolitical and jurisdictional dimension to the Bitcoin seizure. Reporting described the case as a flashpoint in a broader U.S.-China dispute over the origin and ownership of the seized coins, with Chinese authorities disputing aspects of how the Bitcoin came into U.S. possession. The timeline should preserve both the allegation status of the underlying criminal case and the distinct fact that the January transfer changed where the central accused figure would face immediate legal control.