The United States and United Kingdom have taken coordinated legal action against Chen Zhi, a 37-year-old Chinese businessman and chairman of Cambodia’s Prince Group, accusing him of orchestrating transnational criminal operations, including online romance scams and forced labor. A former Chinese intelligence operative, known publicly by the alias “Eric,” has further alleged that Southeast Asian scam networks are closely tied to the Chinese Communist Party (CCP).
On Oct. 14, the British government announced sanctions against six individuals and six companies linked to Chen. The U.S. Department of Justice followed with a broader action, naming nearly 150 individuals and entities, including three Taiwanese nationals and nine Taiwan-registered companies.
American. prosecutors allege that the Prince Group engaged in a wide array of criminal activities, including corruption, money laundering, illegal online gambling, sexual extortion, and the trafficking and torture of workers. Victims were reportedly lured to Cambodia with promises of lucrative employment, only to be detained and coerced into operating online scams targeting individuals in the U.S., U.K., and other countries.
Chen, originally from Fujian Province, China, reportedly holds multiple nationalities, including British and Cambodian, and has been granted a noble title in Cambodia and is referred to in Chinese media as a “duke.”
Former Chinese agent alleges CCP involvement
On Oct. 16, a self-identified former Chinese intelligence agent using the pseudonym Eric published a detailed post on X (formerly Twitter). Eric claims to have worked undercover for China’s Ministry of Public Security before defecting to Australia, and has been publicly speaking out since 2024 about alleged CCP operations in Southeast Asia and Australia.
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In his latest post, Eric reiterated claims that Chen Zhi and the Prince Group are covert operatives for the CCP. He alleges that while working at Prince Group under the guise of a legitimate employee, his actual role was to coordinate intelligence operations, including efforts to entrap overseas dissidents.
“I said I’d talk about Prince Chen, so let me share something you won’t see elsewhere. I’ll also include the Cambodia operation, which I didn’t post earlier for fear it might interfere with the ICIJ investigation. Speaking of which, besides the overseas operations of the Political Security Bureau, there’s actually quite a bit of involvement with the Prince Group. I even drafted the articles of association for their Prince Charity Foundation 🤣…
The video at the beginning is from when we were trying to catch ‘Spicy Pepper’ (a nickname). Back then, Spicy Pepper wasn’t comfortable with it, so I filmed this clip of the Prince’s office area at the last minute.”
Eric claims that Prince Group was allowed to operate extensive illegal businesses in exchange for its cooperation with Chinese authorities. He describes close ties between the company and China’s public and political security apparatus, including a contact surnamed Li, who allegedly led a unit under Chongqing’s political-security division.
He further alleges that Prince Group used charitable events and public gatherings as cover for surveillance and entrapment operations. In one example, Eric says the company displayed a dissident’s work at a public event to lure and identify them. When the operation failed, Chen allegedly remarked that any fallout could be blamed on lower-level staff.
According to Eric, Prince Group operates across multiple sectors — real estate, media, finance, tourism, and even maintains a hacker team. He claims many of these ventures are not profit-driven but serve as money-laundering channels for illicit proceeds.
Eric concludes that Prince Group’s impunity in running large-scale scam operations stems from its collusion with secret CCP networks, describing the company as one of Beijing’s most important covert agents in Cambodia and the broader Southeast Asian region.
Financial analyst highlights strategic influence
On the same day, Taiwanese financial commentator Hu Caiping posted on Facebook that Prince Group’s influence extends beyond scams and gambling. She described the organization as a political enforcer for the CCP, citing its activities in Palau, a Pacific island nation.
Hu claims that when Palau resisted Chinese pressure to sever diplomatic ties with Taiwan, the CCP deployed Prince Group to open casinos and money-laundering operations in the country. She further alleges that the group acquired strategically located land near ports, airports, and radar stations under 99-year leases, potentially enabling intelligence-gathering by individuals with military backgrounds.
She pointed to reports of People’s Liberation Army (PLA) affiliates establishing companies in Palau to build political and business ties with China. Hu likened the CCP’s tactics to coercive threats, writing: “If you refuse to marry me, I’ll destroy your family.”
Hu also suggested that Taiwan’s Investigation Bureau may have assisted U.S. efforts against Prince Group. She cited reports that Palau sought help from Taiwan, and that Bureau Chief Chen Bai-li led a team to Palau to share investigative techniques. Palauan police, trained by Taiwan, later uncovered Chinese-run money-laundering centers and illegal gambling operations.
