Japanese police have arrested a senior figure alleged to be connected to Cambodia’s Prince Group — the sprawling organization that U.S. authorities have tied to a multibillion‑dollar cryptocurrency fraud and money‑laundering network.
What happened
- Tokyo’s Metropolitan Police Department arrested 44‑year‑old Hu Xiaowei (also known as Hu Shi), a Cypriot national, on June 14 on suspicion of submitting false residency information to Japanese authorities, The Asahi Shimbun reports. Police say Hu filed a fraudulent resident registration in April claiming he moved to Chuo Ward in central Tokyo.
- Investigators believe Hu is one of Prince Group’s top executives and suspect he is the individual the U.S. sanctions listed as “Chen Xiaoer.” Hu reportedly told police he moved his registration to pursue permanent residency and that he left the paperwork to representatives, claiming limited understanding of the details.
How the arrest unfolded
- Japanese authorities tracked Hu’s movements inside Japan, searched luxury hotels in Osaka, and identified him via security camera footage before making the arrest.
- Police also arrested two Chinese nationals accused of submitting the residency paperwork on Hu’s behalf and seized smartphones and other devices; investigators are analyzing the materials.
- Officials are examining Hu’s business activities in Japan. Corporate filings show a trading company led by Hu was established in Adachi Ward in April 2023, with capital rising from ¥8 million to ¥50 million by March 2026. The company’s registered address later moved to Chiyoda Ward. Hu’s registered addresses have reportedly changed multiple times, including locations in London, Tokyo’s Minato Ward, Osaka Prefecture, and Chuo Ward.
Why this matters
- The arrest ties into a major international enforcement campaign. In October 2025, the U.S. Treasury and Department of Justice sanctioned Prince Group and 146 related individuals and entities, alleging the Cambodia‑based network ran large-scale online investment fraud schemes — including so‑called “pig‑butchering” scams — and extensive money‑laundering operations.
- U.S. prosecutors have sought forfeiture of more than 127,000 BTC allegedly tied to wallets controlled by Prince Group founder Chen Zhi and associates, a stash valued at roughly $15 billion at the time — one of the largest cryptocurrency seizure efforts ever pursued by U.S. authorities.
Wider enforcement context
- Hu’s arrest comes amid a broader crackdown on the network. Cambodian authorities arrested Prince Group founder Chen Zhi in January 2026, revoked his Cambodian citizenship, and deported him to China under bilateral cooperation on transnational crime.
- Investigators have also targeted figures tied to the Huione network, accused of laundering proceeds from online fraud. In April 2026 Chinese authorities extradited former Huione Group chairman Li Xiong from Cambodia, calling him a core member of the Chen Zhi syndicate.
What’s next
- Japanese investigators have not publicly said whether their probe will expand beyond the residency paperwork allegations, but the Metropolitan Police Department continues to examine Hu’s activities and any operational links between Prince Group and business operations inside Japan.
- The case underscores ongoing international efforts to dismantle large crypto‑enabled fraud networks and track illicit flows through traditional corporate structures and cross‑border movements.
Sources: The Asahi Shimbun; U.S. Treasury and Department of Justice public statements and filings.
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