Chinese victims of alleged online scams and illegal gambling linked to Cambodia’s Prince Group may soon seek compensation through a British Virgin Islands (BVI) liquidation process involving assets tied to the conglomerate’s founder, Chen Zhi. Joint provisional liquidators appointed to investigate and preserve assets held by 30 BVI entities allegedly controlled by Chen stated that no claims or distribution process has been established yet. However, if the cases proceed to liquidation and sufficient funds are available, victims from any jurisdiction, including China, could submit claims under BVI insolvency law, with eligibility not determined by nationality.
The potential for compensation arises as authorities in multiple jurisdictions take action against Prince Group assets following Chen’s arrest and extradition to China. In October 2025, U.S. prosecutors charged Chen with telecommunications fraud and money laundering, leading to sanctions and the seizure of 127,271 bitcoin valued at about 106.9 billion yuan ($16.04 billion). Chen was formally arrested in China on suspicion of fraud, operating casinos, intentional injury, and illegal business operations.
The BVI liquidation process, initiated after Chen’s arrest, has faced significant resistance. Cosimo Borrelli, claiming to represent 25 of the companies involved, challenged the liquidators’ authority in courts in New York and the BVI. Borrelli argued that the BVI appointment was made to assist an investigation rather than liquidate assets. However, the New York bankruptcy court recognized the BVI case as a foreign main proceeding, supporting the liquidators’ efforts to investigate a transnational criminal organization.
The liquidators are prioritizing asset preservation and stabilization, including holdings in listed companies and real estate. One notable asset is an indirect interest in Habanos, the global Cuban-cigar company, controlled through a BVI-incorporated entity. The liquidators emphasized the need to protect the value of this interest amid international sanctions. Chinese victims may file claims in the future if the liquidators’ authority is upheld and complies with Chinese law.