Crypto news

Japanese law enforcement has dealt a serious blow to one of Asia's largest transnational fraud networks. On June 22, it became known that Hu Xiaowei (also known as Hu Shi), a key leader of Cambodia's Prince Group, was detained in Tokyo. The arrest was made on June 14 on charges of providing false information about his place of residence.

The detainee, a 44-year-old Cypriot citizen, is suspected of filing a fake notice of moving to Tokyo's Chuo district in April. During interrogation, Hu stated that a trusted person handled the paperwork and he did not delve into the details. However, the Tokyo police, discovering his actual residence in the country, launched a search and tracked him down through surveillance camera footage from expensive hotels in Osaka, where the arrest took place. Along with him, two Chinese citizens suspected of aiding him were arrested — their smartphones and other devices were seized.

Connection to the Prince Group case and Bitcoin confiscation

This arrest is directly linked to the large-scale investigation into the activities of Prince Group. In October 2025, the United States imposed sanctions on this group and 146 associated individuals and companies. According to U.S. authorities, a network of fraud compounds was operated from Cambodia, where people were forced under threat of violence to participate in "pig butchering" schemes — fake investments luring victims with promises of exorbitant profits.

The key episode was the largest confiscation of digital assets in history: the U.S. Department of Justice seized approximately 127,271 BTC worth about $15 billion. These bitcoins are linked to Prince Group founder and chairman Chen Zhi, who was arrested in Cambodia in January 2026 and extradited to China. The sanctions list included the name "Chen Xiaoer," which Japanese authorities identify with the detained Hu Xiaowei. Previously, his whereabouts were unknown.

Notably, the company where Hu was listed as a director was registered in Tokyo in April 2023 for trading activities. Its authorized capital grew from 8 million to approximately 50 million yen (about $340,000) by March 2026. A Prince Group representative previously called all accusations from the U.S. and UK groundless.

Analytical commentary from Cryptalist: This arrest demonstrates that international law enforcement agencies are increasingly pursuing key figures in cryptocurrency fraud schemes. The confiscation of $15 billion in BTC is not only a record but also a clear signal to the market: anonymity and complex corporate structures are no longer a guarantee of impunity. Investors should be doubly cautious about projects promising easy profits from "gray" jurisdictions.