Cambodia’s central bank has suspended all new operations at Prince Bank Plc. and ordered its liquidation, following the arrest and extradition of the bank’s founder, Chen Zhi, in a sweeping international fraud case. The move marks a sharp escalation in the government’s response to alleged transnational scam networks linked to the bank’s parent company.
The National Bank of Cambodia (NBC) said Thursday that Prince Bank is no longer allowed to accept new deposits or issue loans and has been formally placed under liquidation under Cambodian law. The bank, which operates branches across the country, will be overseen by appointed liquidators from Morisonkak MKA Audit Accounting Co. Ltd., who will manage remaining operations and assets.
NBC officials said depositors may still withdraw funds with proper documentation, and borrowers must continue making payments under their existing contracts. The central bank acted after Cambodian authorities confirmed that Chen Zhi, a wealthy businessman, was arrested in Phnom Penh and extradited to China on Jan. 6, 2026, in connection with allegations of operating large-scale online fraud.
Chen Zhi, a Chinese-born tycoon who built Prince Bank as part of his Prince Holding Group conglomerate, was shown in Chinese media being led off a plane in handcuffs after his extradition. State broadcasters in China described him as a leader of a major transnational gambling and fraud crime syndicate.
He faces accusations from U.S., Chinese and Western authorities over alleged cyberfraud operations, including “pig butchering” scams that used fake online relationships and investment schemes to defraud victims of large sums. Before his arrest, U.S. prosecutors indicted him on fraud and money laundering charges, and authorities in the U.S. and U.K. seized digital assets and froze properties linked to him.
For years, Chen was known in Cambodia as a prominent businessman and philanthropist, with close ties to political leaders and a portfolio that included real estate, airlines and financial services. His sharp fall from influence followed months of international scrutiny of scam networks that allegedly operated in the region, prompting pressure on Cambodian authorities to act.
Implications for Cambodia’s Banking Sector
The liquidation of Prince Bank — a notable player in Cambodia’s banking sector — underscores growing concerns about the entanglement of financial institutions with alleged fraud operations. Regulatory officials have reiterated that the action aims to protect depositors and financial stability while further investigations proceed.
Analysts say the case could trigger broader scrutiny of Cambodia’s oversight of financial and technology-linked enterprises, particularly those with international operations. Financial markets and customers are likely to watch closely as liquidators manage Prince Bank’s remaining assets and obligations.
The central bank did not immediately respond to requests for comment beyond its liquidation announcement. Prince Bank and affiliated companies have not issued public statements responding to the developments.
It also intersects with Cambodia’s crypto market because U.S. authorities have alleged the wider network used cryptocurrency investment fraud and laundering, which can push tighter scrutiny on crypto-linked payments and on banking rails tied to digital-asset flows
Source: https://coinpaper.com/13644/fraud-fallout-cambodia-liquidates-prince-bank-after-founder-extradited
