By Doina Chiacu and Daphne Psaledakis
THE U.S. has sanctioned nine people and 26 entities linked to the Prince Group, a Cambodian organisation accused of operating scam centres, including its supposed ‘second in command’.
Officials cited cybertheft and scam operations originating in Southeast Asia that target Americans.
Among the individuals targeted in the Treasury sanctions were Hu Xiaowei, who authorities said has been described as the Prince Group’s second-in-command and “big brother” to its leader, Chen Zhi, who was sanctioned in 2025.
Treasury said Hu controls three companies in the British Virgin Islands: Eagle Fortitude Limited, Leisure Focus Limited, and Future King Inc. Through the latter, he owns a large network of companies used to manage funds and properties, the department said.
Chen Zhi was arrested and extradited to China in January after a joint U.S.-China investigation into transnational crime. Beijing had been probing Prince Group since 2020 and has a close relationship with Cambodia.
The action builds on the Treasury Department’s 2025 designation of the Cambodian conglomerate, which has interests in everything from real estate to banking and airlines.
“Scam centers in Southeast Asia steal billions of dollars from American victims each year,” Treasury Secretary Scott Bessent said in a statement.
Southeast Asia-based transnational criminal organizations target Americans through large-scale cyber fraud and scam operations, Treasury said.
“A U.S. government estimate reported that Americans lost at least $10 billion in 2024 to Southeast Asia-based scam operations, a 66% increase over the prior year,” it said in a statement.
The Prince Group did not immediately respond to a request for comment sent to an email address listed on an archived version of its website, which is no longer accessible.
Prince Group sanctioned
Treasury said its Financial Crimes Enforcement Network proposed changing its 2025 Huione Group Final Rule to include HPay Service PLC and any successor entity. Treasury said one of the most common and lucrative schemes involves digital asset investment fraud.
The Huione Group has been critical in laundering proceeds of cyber heists and virtual currency investment scams, and was used by the Prince Group for proceeds from its scams, Treasury said.
In a concurrent action, the U.S. Justice Department said it seized a cloud computing account used by subsidiaries of the Huione Group, also based in Cambodia. The subsidiaries helped transfer proceeds from cryptocurrency investment frauds and cyber scams into the legitimate banking sector, the department said.
“The Huione Group used this cloud computing account as part of a technological backbone that allowed billions in fraud proceeds to be transferred, moved, and concealed — much of it stolen through Southeast Asian scam centers,” the Justice Department said in a statement.
The Justice Department said the seized account helped operate Huione Guarantee, also known as Haowang Guarantee, which is accused of using channels on the social media site Telegram for discussions about illegal activities, from the sale of stolen credit cards and identity information to human trafficking. The activities also included laundering proceeds from romance and investment scams, it said.
The seizure was the latest action in the FBI’s Operation Riptide, an organized and ongoing effort to target the infrastructure and tools used to facilitate global fraud and cybercriminal activity, said Assistant Director Brett Leatherman of the FBI’s Cyber Division.
“The seizure of the backend infrastructure used by Huione Group demonstrates how law enforcement can disrupt key components of the cybercriminal ecosystem and make it more difficult for criminals to move and profit on their illicit proceeds,” Leatherman said.
We hope you enjoyed reading this article
If you would like unlimited access to AML Intelligence premium articles, newsletter delivered twice a week, access to our Global Bank Fines and Penalties database, free access to Boardroom Series events and much more, select one of our subscription options and become a subscriber!
