Prince Group: Rise and Fall of a Cambodian Casino Empire Linked to Cybercrime

The once-gaudy facade of Sihanoukville’s Jin Bei casino, a structure once illuminated by a giant golden clam shell filled with playing cards and dice, now stands largely shuttered, a stark symbol of the unraveling of Prince Group and its founder, Chen Zhi. The fall of this Cambodian conglomerate, once one of the country’s biggest, has triggered a wave of scrutiny over alleged ties to political elites and the integrity of a crackdown on criminal compounds linked to human trafficking, forced labor and large-scale fraud. The story underscores the risks inherent in rapid development fueled by foreign investment and the challenges of oversight in emerging markets.

The Rise and Expansion of Prince Group

Chen Zhi, a Chinese-born businessman, founded Prince Group in 2015, capitalizing on a surge of Chinese investment transforming Sihanoukville into a casino and construction boomtown. The city underwent a dramatic shift, attracting significant capital but also raising concerns about sustainability and governance. While a 2019 ban on online gambling and the pandemic initially slowed development, Prince Group continued to expand, unveiling luxury apartments, retail complexes, and even initiating work on a massive $16 billion eco-city project, the Bay of Lights.

Yet, prosecutors allege that behind this legitimate expansion, Prince Group was operating a network of illegal operations and scam compounds in Sihanoukville. The US Justice Department has accused Jin Bei, a company linked to Prince Group, of running these compounds, which were allegedly used for transnational criminal activities. In October 2025, the US and UK jointly sanctioned Prince Group and froze approximately $15 billion in cryptocurrency linked to the group, highlighting the scale of the alleged illicit profits. Singapore subsequently seized S$500m ($393.25m) and Taiwan seized more than T$5.5bn ($172.4m) in assets allegedly connected to Prince Group.

Allegations of Transnational Crime and Political Connections

The US indictment alleges that Prince Group was one of Asia’s largest transnational criminal organizations. Chen Zhi’s arrest in Cambodia in January 2026 intensified scrutiny of the alleged connections between the scam industry and Cambodia’s political elite. Chen had cultivated close ties with high-ranking officials, including then-Prime Minister Hun Sen, becoming an official advisor in 2020. He was also granted the honorific “Neak Oknha” – a title similar to a nobleman – at Hun Sen’s request, requiring a $500,000 contribution to the government. These connections raise questions about the extent to which the Cambodian government was aware of, or complicit in, the alleged criminal activities.

Experts like Jason Tower, at the Global Initiative Against Transnational Organized Crime, suggest that Chen Zhi systematically exploited Cambodia’s political climate. Prince Group also engaged in philanthropic activities, donating to flood victims and establishing scholarships, potentially enhancing its public image and solidifying its relationships with the government. Luxury watches designed by a horology school established by Prince Group were even gifted to world leaders during Cambodia’s hosting of a regional summit.

The Crackdown and its Implications

Following the sanctions, the Cambodian government initiated a crackdown on casinos suspected of involvement in scam operations. As of mid-February 2026, the government reported shuttering 200 locations since July 2025. Fourteen casinos, including several branded “Jin Bei” and a complex in Kandal province, had their licenses suspended by the Commercial Gambling Management Commission. The closures followed raids on casino locations in Sihanoukville linked to the sanctions.

Chen Zhi was extradited to China in January 2026, a move seen as a response to international pressure, particularly from Beijing. While the Cambodian government maintains it was unaware of Chen’s alleged illegal activities, and claims the scam industry did not benefit the state, the incident has prompted a reassessment of Cambodia’s regulatory environment and its vulnerability to exploitation by criminal organizations. Hun Manet, the current prime minister, has pledged to eradicate scam centers, stating that Cambodia is “not a safe haven, but a hell for criminals.”

The Human Cost and Ongoing Concerns

The crackdown has led to the release of thousands of foreign workers from scam compounds, many of whom are suspected victims of human trafficking. Reports indicate that these workers have been subjected to violence, forced labor, and deception, lured to Cambodia with promises of legitimate employment. Many have been left stranded, lacking the resources or documentation to return home. Amnesty International reported that all 35 interviewees who escaped compounds reported no police presence during their departure, raising concerns about the effectiveness of the crackdown and the protection of victims.

The scale of the scam industry in Southeast Asia is estimated to be substantial, potentially accounting for almost half of Cambodia’s formal GDP, according to the United States Institute of Peace. The report highlights the economic incentives that have allowed the industry to flourish. Even with the dismantling of Prince Group’s alleged network, experts warn that a vacuum will likely be filled by other criminal actors, making the fight against online scams a continuing challenge.

What Lies Ahead

The Cambodian government faces a complex task in dismantling the remaining scam infrastructure and addressing the underlying factors that allowed it to thrive. Further investigations into the alleged connections between government officials and criminal organizations are likely, though the extent to which these will be pursued remains uncertain. The long-term impact on Cambodia’s economy and international reputation will depend on the government’s commitment to transparency, accountability, and the rule of law. The case of Prince Group serves as a cautionary tale about the risks of unchecked foreign investment and the importance of robust regulatory oversight in emerging markets.