What exactly happened to Chen Zhi?

Reports say Cambodia revoked his citizenship and extradited him to China after a joint probe into a large online fraud network. Authorities also began moves to seize crypto linked to the network. The actions followed earlier U.S. sanctions. Japanese firms should expect tighter screening on related names and wallets.

How big is the crypto exposure involved?

Authorities moved to seize about ¥2 trillion in crypto assets linked to the network. Such a scale can slow settlements, trigger extra address reviews, and raise false positive alerts. Investors should monitor exchange notices, potential withdrawal delays, and changes in screening lists over the next few sessions.

Could this affect Japanese crypto users directly?

Yes, but likely through compliance timing rather than price alone. Exchanges may place temporary holds or extra checks on transfers tied to higher risk routes. Users should allow more time for fiat and crypto withdrawals, keep proof of funds ready, and follow any new verification steps announced.

What are practical steps for investors in Japan today?

Reduce leverage, diversify custody, and confirm your platforms’ screening updates. Review counterparties with links to Cambodia or China and document approvals. Keep more cash at regulated venues. If any account is flagged, respond quickly with source of funds documents to avoid extended holds or forced reductions.

Law and Government

Prince Holding Group, January 09: Chair Extradited; 2T Yen Crypto Seizure

ByDanny Kontos January 8, 2026January 8, 2026

On January 9, the Prince Holding Group case intensified after Cambodia revoked founder Chen Zhi’s citizenship and extradited him to China following a joint fraud probe and earlier U.S. sanctions. Authorities also moved to seize about ¥2 trillion in crypto assets linked to the network. For Japan, this raises near term anti money laundering and compliance risks across crypto rails, payments, and regional banking ties. We explain what is confirmed, how it may affect flows into Japan, and what investors should monitor today.