Cambodia Extradites Crypto Scam Kingpin as $15B in Bitcoin USD Is Seized
Cambodia has extradited billionaire Chen Zhi to China, where prosecutors accuse him of running a global crypto investment scam that stole billions from victims worldwide. The news came as Bitcoin USD
fell below its key $91,000 level and is currently trading between $89,500 and $90,500.
There is a perception that crime headlines still shape regulators’ views of crypto and adversely affect price action. The extradition of Chen Zhi is part of a broader push by governments to shut down Southeast Asian scam compounds that have drained tens of billions of dollars from everyday users.
Authorities say Chen’s network pulled in as much as $30 million per day at its peak, according to an investigation by 99Bitcoins analysts. The case highlights how South East Asia and China now treat crypto fraud as a financial security threat, not a niche online crime.
BREAKING: Chen Zhi has been filmed under custody during his arrest and deportation from Cambodia to China. The video shows Chen escorted by authorities following the revocation of his Cambodian nationality and his handover to Chinese law enforcement.
This is the first visual… pic.twitter.com/t06XtwnaRF
— Jacob in Cambodia
(@jacobincambodia) January 8, 2026
Who Is Chen Zhi, and How Did His Billion Dollar Crypto Scam in Cambodia Work?
Chen Zhi allegedly ran a web of fake investment platforms often linked to “pig-butchering” scams. It is a term for when scammers build trust over weeks or months, then convince victims to invest in fake crypto apps. Once the funds are deposited, the individual effectively hands the money over to the scammers.
There are times when victims have been double-scammed: first by the bad actor running the pig butchering scam, and then by another scammer within the network, posing as a trusted platform and offering to help recover the lost funds.
According to Reuters, Chen’s organization operated in more than 30 countries and relied on forced labor in scam centers across Cambodia and Myanmar. US authorities alone seized between $14Bn and $15Bn in Bitcoin USD tied to the operation. That makes it one of the largest crypto seizures ever.
Chen founded the ‘Prince Holding Group’, through which he ran many of his crypto scams, and was arrested on January 6, 2026, in Cambodia following a long investigation. Zhi was extradited to China the next day after his Cambodian nationality was revoked.
This operation was the result of international collaboration among Cambodian, Chinese, and Western authorities, demonstrating a shared determination to dismantle transnational criminal networks.
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What Does This Mean for Everyday Crypto Investors?
First, this case shows enforcement catching up. Cross-border action like this was once rare but is now becoming normal. That trend protects long-term investors by pushing scammers out of the market.
Second, it explains why exchanges and wallets now demand more identity checks. Many beginners view this as a breach of their freedom, when in reality it helps stop money-laundering networks like Chen’s. We covered similar crypto enforcement actions when authorities targeted privacy tools linked to illicit flows.
RIP CRYPTO PRIVACY IN EUROPE
As of Jan 1st, DAC8 is officially live across the EU, and it’s a total game-changer. If you live in a member state, the days of flying under the radar with your bags are officially over.
Here’s the deal:
1) Snitching is Mandatory: Every… pic.twitter.com/vACABoyHzG
— Nonzee (@0xNonceSense) January 7, 2026
Such an extensive collaboration between Eastern and Western authorities can only benefit investors, as it demonstrates a willingness to work together to apprehend large-scale crypto scammers.
There is also a lesson here about self-protection. No real platform promises daily profits. A legitimate crypto app will never pressure you to “act now” via private messages via social media platforms or email. Those red flags still catch new users every day. A key rule of thumb in every walk of life, but especially in crypto, is: ‘If it sounds too good to be true, it probably is’.
Does This Crackdown Hurt Bitcoin USD or Make It Safer?
Many OG crypto traders and investors share a common belief in anonymity and freedom, which holds that heavy enforcement and KYC (know your customer) protocols deter new investors.
In reality, the opposite often happens. When scams shrink, trust grows. That is why Bitcoin USD has survived crackdowns and continues to attract long-term holders.
That said, risk remains, as scammers adapt quickly, staying one step ahead of security measures and law enforcement. Fake apps now look identical to real ones. Even experienced users slip up. This is why it’s important to understand the various crypto scams and hacks before investing real funds in the sector.
The smart move stays boring. Use well-known, established platforms. Never invest based on private messages from unknown users, and never send crypto to someone promising guaranteed profits. Bitcoin USD remains the safest asset, the least volatile cryptocurrency with the longest track record, due to its having the deepest liquidity pool.
Governments are not done. More extraditions and seizures are coming, especially in Asia, where the crackdown on these scam crypto empires is being carried out with sufficient force. For honest investors, that pressure will gradually turn crypto into a safer place to learn, hold, and grow, though at the cost of privacy rights.
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