Arrest in Japan: Key figure in the Prince Group case and $15 billion bitcoin case detained in Osaka
Japanese law enforcement has dealt another blow to a transnational fraud infrastructure. On June 22, it was reported that a 44-year-old Cypriot citizen, known as Hu Xiaowei (also referred to as Hu Shi), was detained in Osaka. According to the investigation, this individual is one of the senior leaders of the Prince Group, a notorious Cambodian corporation that U.S. authorities consider the center of one of the largest cryptocurrency fraud schemes in Asia.
The formal reason for the arrest on June 14 was suspicion of submitting false information about his place of residence. It was found that in April, Hu filed a knowingly false notification of a move to Tokyo's Chuo Ward, aiming to obtain permanent residency. During interrogation, he stated that he had entrusted the paperwork to a trusted person and did not delve into the details. However, the Tokyo police, using surveillance camera footage from expensive hotels in Osaka, tracked him down and made the arrest. Along with him, two Chinese citizens were arrested on suspicion of aiding and abetting.
Behind this seemingly bureaucratic procedure lies a massive cryptocurrency scandal. Recall that in October 2025, the U.S. Department of Justice (DOJ) imposed sanctions on the Prince Group and 146 related individuals and companies. According to U.S. authorities, the group operated a network of forced "call centers" from Cambodia, where people were coerced under threat of violence into participating in "pig butchering" schemes—fake investment scams using cryptocurrencies.
A key moment was the DOJ's seizure of approximately 127,271 BTC, worth about $15 billion—the largest confiscation of digital assets in U.S. history. These bitcoins were linked to Prince Group founder and chairman Chen Zhi, who was arrested in Cambodia in January 2026 and extradited to China. Now, Japanese authorities have identified the detained Hu Xiaowei as the person listed in the sanctions list under the name "Chen Xiaoer." Until recently, his whereabouts were unknown.
Notably, the company where Hu is listed as a director was registered in Tokyo in April 2023. Its authorized capital grew from 8 million to approximately 50 million yen (about $340,000) by March 2026. This indicates that Japan may have been used not only as a refuge but also as a platform for money laundering.
Expert opinion. The arrest of Hu Xiaowei in Japan is not just a routine detention. It signals that global coordination among law enforcement agencies in combating cryptocurrency fraud is reaching a new level. The fact that a key figure was hiding in Japan, using complex schemes involving company registration and fictitious changes of residence, speaks to the high level of professionalism and resource base of these groups. The seizure of $15 billion in BTC set a historic precedent, and now we see this chain of justice beginning to close in on operational leaders. The market must realize: the "anonymity" of cryptocurrencies in the hands of transnational crime is an illusion that is shattered with each new arrest.