Cambodia Commences Liquidation of Prince Bank Founded by Indicted Scam Boss Chen Zhi

The National Bank of Cambodia (NBC) announced on Thursday that Prince Bank, a financial institution founded by Chinese-Cambodian tycoon Chen Zhi, is being placed under liquidation proceedings. Chen Zhi was extradited to China from Cambodia after being indicted by the United States for allegedly running one of Asia’s largest transnational cybercrime networks. The U.S. Justice Department has charged him with wire fraud and money laundering conspiracy, involving over 127,271 bitcoins, which could be worth more than $11 billion at current prices.

The central bank said Prince Bank has been suspended from accepting deposits and providing new credit services. It has also appointed Morisonkak MKA as the liquidator for the process.

The bank is a subsidiary of Prince Holding Group, a conglomerate with significant influence in Cambodia, and reportedly holds about a billion dollars in assets under management.

Customers with existing deposits can continue to withdraw funds normally, and borrowers must continue fulfilling their obligations. The liquidation follows a months-long investigation and international pressure against the scam network operating under Prince Group’s umbrella.

Why Did This Happen?

Chen Zhi, who served as an adviser to Cambodia’s prime minister, was arrested alongside two other Chinese nationals on Tuesday. Cambodia’s Interior Ministry stated that the operation was conducted at the request of Chinese authorities, who reportedly wanted to handle the case within China. Chen’s Cambodian nationality was revoked in December, allowing for his extradition.

U.S. and British authorities sanctioned Prince Group and its affiliates in October, designating them as transnational criminal organizations. The U.S. Justice Department also seized over $15 billion in cryptocurrency from the group, marking one of the largest forfeiture actions in U.S. history.

How Did Markets Respond?

Financial markets in Southeast Asia have remained relatively calm, with no immediate large-scale disruptions reported. Cambodia’s central bank emphasized that the liquidation process is being conducted in accordance with national laws, and that customer withdrawals are unaffected. Analysts suggest the move is aimed at stabilizing the financial sector while ensuring continuity for bank customers.

Meanwhile, the broader iGaming and cryptocurrency sectors remain under scrutiny, especially in countries like Cambodia, where scam centers have drawn international criticism. The Southeast Asia iGaming market is expected to grow at a compound annual growth rate of 21% through 2034, reaching $8.3 billion, despite regulatory and ethical challenges.

What Are Analysts Watching Next?

Experts like Jacob Daniel Sims, a transnational crime expert at Harvard University’s Asia Centre, suggest the extradition of Chen Zhi was a strategic move by Cambodia to reduce Western scrutiny while aligning with China’s interests. The government has faced sustained pressure from the U.S. and U.K. to act against scam networks operating within its borders.

Analysts are now monitoring how Cambodia’s financial regulators will handle the liquidation process and whether further measures will be taken against other affiliated entities. Additionally, the impact of the U.S. and UK actions on the broader regional financial landscape is being closely observed.

Chinese authorities have yet to comment on the legal charges against Chen, though they have stated they are working to combat cross-border telecom fraud. With Chen already in custody in China and a liquidator appointed for Prince Bank, the focus is now on how international law enforcement cooperation will shape future actions against transnational cybercriminals in the region.