Arrest of Prince Group's top manager in Japan: investigation leads to the largest Bitcoin seizure in history
Tokyo police have arrested Hu Xiaowei (also known as Hu Shi), who is considered one of the key leaders of Prince Group — a massive transnational fraud network based in Cambodia. This event sheds new light on one of the most high-profile cases in cryptocurrency history.
Timeline of the arrest and charges
The 44-year-old Cypriot citizen was arrested on June 14 on suspicion of providing false information about his place of residence, with the information becoming public on June 22. According to the investigation, in April he submitted a knowingly false notification of a move to Tokyo's Chuo Ward. During interrogation, the detainee stated that the paperwork was entrusted to a trusted person and that he was unaware of the details. Police tracked him down by analyzing surveillance camera footage from several expensive hotels in Osaka, where the arrest took place. Along with Hu, two Chinese citizens were arrested, who are suspected of submitting the change of residence notification on his behalf. All smartphones and other devices have been seized for further analysis.
Prince Group and $15 billion in Bitcoin assets
This arrest is directly linked to a massive fraud case. In October 2025, the U.S. Department of Justice (DOJ) seized approximately 127,271 BTC (worth about $15 billion at the time) — the largest asset confiscation in the country's history. The Bitcoins were linked to Prince Group founder and chairman Chen Zhi, who was arrested in Cambodia in January 2026 and extradited to China.
According to U.S. authorities, Prince Group operated a network of fraud compounds from Cambodia, where people were forced under threat of violence to participate in "pig butchering" schemes with fake investments. The U.S. sanctions list included the name "Chen Xiaoer," and Japanese authorities identify him with the arrested Hu Xiaowei. The company where Hu is listed as a director was registered in Tokyo in April 2023, and its authorized capital grew from 8 million to 50 million yen (about $340,000) by March 2026.
Cryptalist Analysis: The arrest of a Prince Group top manager in Japan is not an ordinary event. It demonstrates that international law enforcement agencies are actively hunting for key figures in cryptocurrency fraud networks, not just low-level operators. The seizure of $15 billion in BTC sends a clear signal to the market: cryptocurrency anonymity does not guarantee impunity, and assets obtained through criminal means will be found and confiscated. This case could set a precedent for strengthening control over large transactions and tightening KYC procedures across Asia.