A Cambodian bank established by the accused fraudster Chen Zhi, who faces charges in the United States for orchestrating a multibillion-dollar scam, has been ordered to liquidate.
The National Bank of Cambodia (NBC) announced on Thursday that Prince Bank would be liquidated in accordance with the country’s laws. Founded in 2015, the bank states in its website to have thirty-six branches located in twenty-two provinces and cities in Cambodia.
The bank has been suspended from offering new banking services, including accepting deposits and providing credit. Morisonkak MKA has been appointed as the liquidator. Customers can still withdraw their deposits by submitting the necessary documentation, while borrowers must continue to meet their financial obligations.
Chen, who was sanctioned by Washington and London in October for leading a cyberfraud operation involving numerous scammers in Cambodia, was arrested and extradited to China along with two other nationals. This extradition followed months of investigative cooperation between Cambodia and Chinese authorities.
Jacob Daniel Sims, a transnational crime expert and visiting fellow at Harvard University’s Asia Center, told AFP that the arrest reflects increased pressure on the Cambodian government to address its role in harboring criminal activities. He pointed out that many scam operations in Cambodia allegedly function with governmental support.
Chen could face up to 40 years in prison in the U.S. on charges of wire fraud and money laundering involving a significant cryptocurrency seizure.
U.S. prosecutors recently unveiled an indictment against Chen, accusing him of overseeing compounds where trafficked individuals executed cryptocurrency fraud schemes. Victims have been targeted with so-called “pig butchering” scams, which build trust over time before committing theft.
The operations have generated billions in global losses, with many victims working under duress in scam centers across Cambodia and the region. Experts estimate that thousands are involved in this multimillion-dollar industry, often facing brutal conditions.
Chen had significant influence in Cambodia, previously serving as an adviser to Prime Minister Hun Manet and his father, former leader Hun Sen. His Cambodian nationality was revoked in December, highlighting the shifting response to his alleged criminal activities.
