Cambodia extradites accused business tycoon to China

A prominent tycoon wanted by United States federal prosecutors for allegedly running one of Asia's largest transnational criminal networks has been arrested and extradited to China, Cambodian authorities said on Wednesday. 

Chen Zhi, 38, a national of China and Cambodia, was extradited on Tuesday after a months-long investigation by the two countries, Cambodia's Interior Ministry said in a statement. Chen's Cambodian citizenship had been revoked, the ministry added, reports CNN. 

The operation was conducted at the request of the Chinese government, the ministry said, though it is unclear what charges Chen faces in China. He was arrested alongside two other Chinese nationals.  Chen is the founder and chairman of Prince Group, which bills itself as one of Cambodia's biggest conglomerates, with investments in luxury real estate, banking services, hotels, and major construction developments. 

But US federal prosecutors say his business empire was fueled by forced labor and cryptocurrency scams that conned victims the world over and at one point were allegedly earning Chen and his associates $30 million every day. 

In October, the US Treasury Department and UK Foreign Office sanctioned Prince Group and dozens of its affiliates, designating them transnational criminal organizations. Chen was charged in absentia in New York with money laundering conspiracy and wire fraud conspiracy, along with several associates. 

Prosecutors also seized $15 billion in cryptocurrency from Chen following a years-long investigation, in what the Justice Department said was the largest forfeiture action in its history.  Since the indictment was announced, several other jurisdictions including Singapore, Thailand, Hong Kong and Taiwan announced seizures or freezes of hundreds of millions of dollars in assets linked to Chen. 

CNN has reached out to lawyers representing Prince Group for comment on Chen's arrest. Prince Group has previously denied engaging in unlawful activity, calling the allegations "baseless" and "aimed at justifying the unlawful seizure of assets," according to a statement published on its website.