Arrest in Tokyo: Police detain Prince Group top manager in $15 billion bitcoin case
Tokyo police conducted an operation to detain Hu Xiaowei (also known as Hu Shi) — one of the key leaders of Cambodia's Prince Group, which U.S. and British authorities consider the largest transnational fraud network in Asia.
Circumstances of the Detention
Hu was taken into custody on June 14 on suspicion of submitting false information about his place of residence. This was officially made public on June 22. According to the investigation, the 44-year-old Cypriot citizen filed a knowingly false notification of moving to Tokyo's Chuo Ward in April. During interrogation, he stated that a trusted person handled the paperwork, and he himself was unaware of the details — he was only interested in obtaining residency in Japan.
Investigators traced Hu through surveillance camera footage in expensive hotels in Osaka. Along with him, two Chinese citizens were detained who, according to police, submitted fake notifications on his orders. Smartphones and electronic devices were seized from all of them.
Connection to the Prince Group "Bitcoin Case"
As a reminder: in October 2025, the U.S. Treasury imposed sanctions on Prince Group and 146 related individuals and companies. According to U.S. authorities, the group operated so-called "pig butchering" schemes from Cambodia — fraudulent investment platforms where people were forced under threat of violence to deceive victims worldwide.
During the investigation, the U.S. Department of Justice seized approximately 127,271 BTC (about $15 billion at the exchange rate at the time of seizure) — the largest confiscation of digital assets 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.
The U.S. sanctions list included the name "Chen Xiaoer," and Japanese investigators are confident that this is the same person as Hu Xiaowei. Until recently, his whereabouts remained unknown.
The Japanese Trail
According to registry data, the company where Hu is 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 the accusations by U.S. and British authorities baseless.
My comment: This case is a vivid example of how law enforcement systems from different countries are beginning to coordinate efforts to combat crypto fraud. The seizure of 127,000 BTC set a precedent that will change approaches to investigating such schemes. Hu's detention in Japan is just another episode in the global operation to dismantle Prince Group's infrastructure. The market should closely monitor developments: new arrests are possible and, more importantly, new bitcoin seizures that could put pressure on liquidity.