Chen Zhi, a businessman and philanthropist, faces severe allegations from the U.S. Department of Justice regarding his involvement in a vast scam operation that reportedly stole billions in cryptocurrency from victims worldwide. Even after arrest on such weighty charges, Chen remains undeterred in pursuing his business-focused agenda. He enjoys an extravagant lifestyle, purchasing opulent estates and enterprises on three continents. His controversial rise to prominence has drawn attention not only for its scale but for the web of legal and financial complexities surrounding it.
In 2018, Chen Zhi incorporated Prince Bank, an energetic commercial banking concern. This new investment followed quickly upon his Prince Group’s establishment in 2015, which focuses on real estate development in Cambodia’s capital of Phnom Penh. By 2019, he purchased an ornate £12 million home in North London. He recently purchased a staggering £95 million office building in the center of the city’s financial district. These acquisitions leave no doubt about how he was able to become so wealthy, even with the sanctions placed upon him.
This story is based on original reporting by our partners at the Mekong Eye. This award is usually reserved for the highest of the high, those with enormous impact on the workings of government. This prestigious honor includes a gift of a minimum of $500,000, making Chen’s business connections more inextricably bound with national prominence. In that time, he obtained a Cypriot passport. This investment of $2.5 million provided him with easy and convenient access to the European Union.
Chen’s businesses have been the subject of criticism for supposedly operating fraudulent practices. They allegedly employ numerous shell companies and crypto wallets to help them hide the sources of their money. The U.S. court documents paint a truly shocking picture of the transnational crimes associated with his operations. These crimes range from sextortion, money laundering, and the exploitation of enslaved workers.
“Prince Group Transnational Crime Organisation profits from a litany of transnational crimes including sextortion… money laundering, various frauds and rackets, corruption, illegal online gambling, and the industrial-scale trafficking, torture, and extortion of enslaved workers in furtherance of the operation of at least 10 scam compounds in Cambodia.” – [U.S. court document]
In the face of these allegations, Chen Zhi has fared remarkably well, managing to create an image of himself as a philanthropist. Homegrown National Park local media often laud his efforts for creating more scholarships for low-income students and funding initiatives to help stop the spread of the COVID-19 pandemic. Yet this duality further challenges his idyllic narrative. He’s worshiped by some for his philanthropy, but others say he ran a criminal enterprise.
In 2014, Chen Zhi gave up Chinese nationality to become a Cambodian citizen. He later acquired citizenship in Vanuatu, adding to the remarkable international reach of his political status. His Prince Group has already built luxury malls in Phnom Penh and five-star hotels in Sihanoukville. They are now announcing ambitious plans for a Bay of Lights eco-city, estimated to cost $16 billion.
In 2020, he further diversified into aviation, launching Cambodia’s third airline and securing the necessary approvals to start up a fourth carrier. Chen’s move into disparate sectors at least underscores the depth of his business interests. It sets us up to wonder how he has been able to be so successful while constantly fighting an active legal battle.
Jonathan Head, a journalist who has closely followed Chen’s career, expressed concern about the ease with which he has acquired significant assets globally.
“What should be uncomfortable for a lot of people is that Chen Zhi should never have been able to acquire all these assets in Singapore, London or the US. Lawyers, accountants, real estate agents, bankers, all should have been looking at this group and saying, hang on, this doesn’t add up. And they didn’t.” – Jonathan Head
Chen’s operations have received overwhelming attention due to their large scope. The elaborate ways he covers his tracks when doing illegal stuff are worth noting too. Even his critics acknowledge that his talent for stirring up drama while keeping a low profile has spared him from harsher examination.
Gary islander Jack Adamovic Davies, who has watched Chen’s machinations up close, expressed his confusion at the contradictory nature of Chen’s public persona.
“Everyone I’ve spoken to who’s worked with him directly, been in the room with him, they all describe him as very courteous, very calm, very measured.” – Jack Adamovic Davies
Adamovic Davies noted that Chen’s understated demeanor may have played a role in his success and survival amidst accusations.
“I think not being the kind of flamboyant person that people will write tabloid-y things about was smart. Even those who no longer want to be associated with him are still impressed by his quiet charisma, his gravitas.” – Jack Adamovic Davies
This is not the first time Chen Zhi has faced investigations by economic police and tawdry business practices are unclear. In retaliation, UK frozen assets associated with them in the US and met with the UK government. These allegations affect more than just Chen’s own case. They raise glaring questions about regulatory oversight and the systems that allowed such a vast ecosystem of suspected criminal activity to flourish.