Chinese language authorities seized over 127,000 Bitcoin — value greater than $15 billion — from the pinnacle of a large crypto fraud community. That seizure, tied to Chen Zhi of Prince Group, was simply the opening transfer. Now his right-hand man is in custody too.
Extradition From Phnom Penh
Li Xiong, former chairman of Huione Group, was flown from Cambodia’s capital to China on April 1 after a job pressure from China’s Ministry of Public Safety coordinated the switch with Cambodian officers.
He now faces fraud and money-laundering prices. Hong Kong-based outlet Ta Kung Wen Wei first reported the event, citing a press release from the Ministry posted on WeChat.
Xiong’s arrest follows Chen Zhi’s by about three months, suggesting Chinese language regulation enforcement has been working by means of the syndicate’s management in levels.
Arrested and launched inside hours again in January. Two months later, Li Xiong has been extradited to China. CCTV is asking him a core member of Chen Zhi’s felony gang. Chen Zhi was extradited in January too. https://t.co/Y9pYI30Ysp pic.twitter.com/xHSY6NvYFX
— Jacob in Cambodia 🇺🇸 🇰🇭 (@jacobincambodia) April 1, 2026
Huione Group operated because the monetary spine for rip-off operations unfold throughout Southeast Asia. These included so-called “pig butchering” schemes — long-con frauds the place criminals construct faux on-line relationships with victims earlier than draining their financial savings by means of faux funding platforms.
The group processed over $89 billion in crypto belongings, in response to blockchain analytics agency Elliptic, making it one of many largest illicit monetary operations ever documented.
A Community Constructed On Stolen Crypto
The syndicate’s attain prolonged nicely past Cambodia. Victims all over the world misplaced cash to rip-off facilities that funneled proceeds by means of Huione’s infrastructure.
In October, the US Treasury Division’s Monetary Crimes Enforcement Community lower Huione Group off from the American banking system solely, ordering US monetary establishments to shut any accounts or cost channels linked to the group. That transfer successfully froze the community’s entry to dollar-denominated finance.
Across the identical time, the US Division of Justice introduced it had seized 127,271 Bitcoin linked to Chen Zhi. At present values, that haul exceeds $15 billion — one of many largest crypto seizures in historical past.
Authorities Warn Remaining Members
Chinese language officers will not be achieved. Ta Kung Wen Wei reported that a number of different members of the syndicate have already been delivered to justice. Officers issued a public warning to anybody nonetheless at massive, urging them to show themselves in and cooperate in change for extra lenient therapy.
“Public safety authorities will proceed to accentuate efforts to seize fugitives,” the outlet quoted officers as saying.
The message was blunt: the window to give up is open, but it surely won’t keep open lengthy. With two of the group’s high figures now in Chinese language custody and its funds lower off from the US banking system, what stays of the Huione community seems to be working out of room.
Featured picture from Getty Photographs, chart from TradingView
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