CaliToday (14/11/2025): A transnational legal saga surrounding Cambodian conglomerate Prince Group and its founder, Chen Zhi, has escalated into a high-stakes geopolitical confrontation between the United States and China. On November 11, Prince Group publicly refuted sweeping allegations from the U.S. Department of Justice, including telecom fraud and money laundering. In a near-simultaneous move, a Chinese state-backed agency accused the U.S. of orchestrating a cyberattack to steal over 120,000 Bitcoin belonging to Chen, transforming a massive criminal case into a direct Sino-U.S. standoff.
Experts assert the case has transcended criminal law, evolving into a geopolitical battle. As a multinational coalition moves to trace and freeze the group's assets, analysts increasingly believe Prince Group is a "white glove" front for powerful, elite families within the Chinese Communist Party (CCP).
The U.S. Indictment and China's Counter-Punch
The storm began on October 14, when the U.S. DOJ unveiled an indictment accusing Chen Zhi and his conglomerate of engaging in massive online fraud operations. The announcement included the seismic move to seize a Bitcoin wallet valued at approximately $15 billion.
The international response was swift. The United Kingdom froze over $130 million in assets linked to Chen. Singaporean police blocked more than 150 million SGD, and Taiwan and Hong Kong initiated their own seizure procedures.
But just as Prince Group issued its November 11 denial of the "baseless" U.S. claims, Beijing intervened. On November 9, China’s National Computer Virus Emergency Response Center (CVERC) an agency established in 2001 and nominated by the Ministry of Public Security—released a stunning report.
Titled, "The U.S. Government May Have Used Cyber Attack Methods to Steal Chen Zhi's 127,000 Bitcoins," the report alleges a massive U.S. state-level hack on the "LuBian" mining pool on December 29, 2020. The report effectively frames the U.S. DOJ's asset seizure not as law enforcement, but as state-sponsored theft.
A Global Crackdown on a Shadowy Empire
The multinational dragnet highlights the sheer scale of Chen's operations:
Taiwan: On November 4, prosecutors directed raids on multiple Prince Group-affiliated companies, arresting 25 suspects. Authorities requested the seizure of 18 real estate properties, 26 luxury cars, and 60 bank accounts, totaling 4.5 billion TWD (approx. $149 million USD). Chen Zhi's close aide, Ko Shu-wen, was detained and held incommunicado.
Hong Kong: The U.S. indictment states Chen controls at least 10 companies, including listed firms Chiho-Tiande and Koon Group. This network allegedly purchased Rolex watches, Picasso paintings, and other luxury goods, alongside prime real estate like a commercial building on Kimberley Road and a mansion in the ultra-exclusive Mount Nicholson.
Singapore: Three Singaporean citizens linked to Prince Group have been sanctioned by the U.S.
At the center is Chen Zhi, 37, a man of multiple nationalities (China, Cambodia, UK). He wields significant influence in Cambodia, having served as an advisor to both Prime Minister Hun Manet and his father, former PM Hun Sen. In July 2020, he was granted the prestigious neak oknha title, a Cambodian honorific equivalent to a noble lordship.
Analysis: Why is the CCP Defending a "White Glove"?
Experts argue that Beijing's extraordinary intervention reveals Chen's true function. The CCP is not defending a mere businessman; it is protecting a critical state asset.
1. Protecting the "Red Capital" Treasury
Sheng Xue, a Chinese-Canadian author and democracy activist, told Epoch Times that the CCP's defense is about shielding its own treasury. "The U.S. move—seizing 127,000 Bitcoin and 19 London properties directly severs the financial chain of a specific system," she stated.
According to Sheng, Chen is no ordinary entrepreneur but the "treasury manager" for Chinese "red capital" in Southeast Asia. She alleges he operates overseas assets and launders money for elite CCP factions, specifically naming:
Qi Qiaoqiao (Sister of Chinese President Xi Jinping)
The family of Huang Kunming (current Party Secretary of Guangdong and member of the "Fujian Faction")
Sheng further claims Chen, born in Fuzhou, Fujian, is the son of Huang Kunming's sister-in-law.
His conglomerate's focus on real estate, gambling, and cryptocurrency, Sheng notes, are classic channels for washing illicit funds.
2. Defending a Covert Operations Network
"Eric," a former Chinese agent, offered a parallel analysis. He argued that Beijing's support is "not necessarily to help Chen personally, but to protect the task force that acted for them."
He described Prince Group as one of the most important "agents" used by Beijing for covert activities in Cambodia and across Southeast Asia. In this view, China's aggressive counter-report is an "offense as defense" strategy, designed to save face and protect its intelligence and influence networks in the region.
3. High-Level Family Ties
Shen Ming-shih, a researcher at Taiwan's Institute for National Defense and Security Research, echoed this. "If he were just an ordinary person, the CCP would not stand up to protect him, especially during a period of U.S.-China trade tensions. It proves he has very strong backing."
An unnamed Chinese lawyer stated that the CCP's defense "proves the assessment that Chen Zhi is a 'white glove' for high-level CCP officials."
The Inevitable Showdown
With a multinational investigation tracing an indelible blockchain, analysts believe Prince Group's chances of legal escape are "near zero."
The case now resembles the Meng Wanzhou (Huawei) incident, suggesting the final resolution may not be legal, but political. As one lawyer noted, the CCP's goal is likely not to win in court, but to force a state-to-state negotiation.
As the U.S. clamps down on what it sees as a transnational criminal network, it has inadvertently struck a nerve deep within Beijing's power structure forcing the hidden guardians of elite capital and covert operations out into the open.