Cambodia Extradites Scam Leader Chen Zhi to China Amid Pressure

On January 7, 2025, Cambodian authorities detained and deported Chen Zhi, the founder and former chairman of the Prince Group, to China. Chen faces serious accusations related to a global fraud operation, including wire fraud and money laundering conspiracy. This action marks a significant turn in Cambodia’s approach to cybercrime, especially given Chen’s previous connections to high-ranking officials and his status as a prominent tycoon in the country.

Chen’s extradition has raised eyebrows, particularly because he had been under the protection of the Cambodian government. Despite long-standing commitments from Prime Minister Hun Manet to combat cybercrime, Chen had previously operated with little oversight. His influential position allowed him to run a network of scam centers, even as pressure from international organizations mounted, urging action against his operations.

This shift in treatment seems to coincide with recent geopolitical developments. Last year, Chen was indicted as part of a joint US-UK initiative targeting organized crime in Southeast Asia. Following this, the US introduced sanctions against the Prince Group, highlighting the increasing scrutiny of its operations. The Cambodian government, which had previously deflected investigations into Chen’s activities, faced mounting international pressure to take action.

The decision to extradite Chen to China instead of the US or UK, where he also faces active warrants, suggests a complex strategy by the Cambodian government. Observers note that the timing of his deportation closely follows the controversial US intervention to apprehend Venezuelan President Nicolas Maduro on narco-terrorism charges. This implies a clear message: the US is willing to take decisive action in global matters it views as threats to national security.

The ramifications of Chen’s operations extend beyond Cambodia. Cybercrime in East and Southeast Asia is estimated to cost nearly $40 billion annually, with Cambodia alone accounting for $12.5 billion. The potential for Chen to divulge sensitive information about the network of scam operations and their connections to government officials may have motivated Phnom Penh to act against him. His deportation to China, a country that has reportedly addressed numerous online fraud cases, poses its own risks.

According to a report by the US-China Economic and Security Review Commission, China has selectively cracked down on scam operations targeting its citizens. The report suggested that this strategy has led criminal organizations to shift their focus to the US, believing it offers greater profitability with lower risk. This context raises questions about whether Cambodia’s decision to collaborate with China signifies a broader shift in how the region combats cybercrime.

Despite some regional successes, including the release of thousands of victims from Myanmar’s scam operations, the cybercrime industry remains resilient. A report from the UN Office on Drugs and Crime emphasizes that corruption and weak governance continue to facilitate the growth of these networks. In Cambodia, several government officials have been implicated in cyber syndicates, demonstrating the challenges that authorities face in addressing the issue comprehensively.

As ASEAN countries navigate the complexities of cybercrime and its implications for regional security, the need for coordinated diplomatic efforts becomes increasingly urgent. The situation surrounding Chen Zhi serves as a reminder of the delicate balance between national interests and the fight against transnational crime. The response of the Cambodian government may reflect a cautious approach, weighing the potential fallout from allowing Chen to fall into the hands of US authorities against the necessity of maintaining a façade of control over cybercrime.

In light of these developments, ASEAN leaders must prioritize collective action against cybercrime. This requires not only statements of intent but also concrete measures, including targeted sanctions and multinational law enforcement initiatives. The stakes are high, as the region grapples with the persistent threat of scam operations and their impact on economic stability and human rights.

Samady Ou, a Cambodian youth activist and Human Rights Foundation Freedom Fellow, emphasizes the importance of holding accountable those responsible for scam network crimes. As the region confronts these challenges, the path forward must involve collaboration and a commitment to upholding justice.