Chen Zhi associate Li Xiong sent to China in major scam probe

Li, described as a core member of operations linked to Chinese-Cambodian businessman Chen Zhi, was transferred from Cambodia to China as part of an ongoing crackdown on cross-border financial crime, News.Az reports, citing Reuters.

Chen, the founder of the Prince Group conglomerate, has been tied by US prosecutors to large-scale cryptocurrency investment fraud schemes that allegedly defrauded victims worldwide of billions of dollars.

Li previously served as chairman of the Huione Group, which has been accused of laundering at least $4 billion in illegal funds between August 2021 and January 2025, according to the US Treasury’s Financial Crimes Enforcement Network (FinCEN).

Authorities say the funds came from multiple sources, including:

• $37 million linked to North Korean cyberattacks
• $36 million from cryptocurrency investment scams
• Around $300 million from other online fraud schemes

Cambodian officials confirmed the extradition and highlighted cooperation with China in the investigation. Chinese experts were deployed to assist local authorities, leading to Li’s arrest.

Government spokesperson Touch Sokhak said the move reflects Cambodia’s commitment to tackling cybercrime and signals that the country is “not a safe haven for scam criminals.”

The case underscores growing international efforts to combat online fraud networks, particularly those involving cryptocurrency and cross-border operations. Authorities across Asia have intensified investigations as scams targeting global victims continue to expand.

The extradition marks a significant step in China’s pursuit of suspects linked to one of the region’s most high-profile financial crime cases.