Headline: Japan detains senior figure tied to U.S.-sanctioned Prince Group as investigators probe alleged $15B crypto fraud network
Tokyo — Japanese police have arrested a senior executive reportedly linked to Cambodia-based Prince Group, a sprawling organization U.S. authorities say oversaw multibillion-dollar cryptocurrency fraud and money‑laundering operations.
What happened
- Tokyo’s Metropolitan Police Department arrested 44-year-old Cypriot national Hu Xiaowei (also known as Hu Shi) on June 14, the Asahi Shimbun reported. He was detained on suspicion of submitting false resident-registration paperwork that said he had moved to Chuo Ward in central Tokyo.
- Investigators believe Hu is a top executive within Prince Group and may be the individual identified by U.S. sanctions as “Chen Xiaoer.” The U.S. Treasury and Department of Justice sanctioned Prince Group and 146 related individuals and entities in October 2025, accusing the network of running international online investment frauds (including “pig-butchering” scams), money laundering and other transnational crimes.
- Police allege Hu filed the fraudulent residency notice in April. According to sources cited by Asahi, Hu told investigators he transferred his registration to pursue permanent residency in Japan and that he left the paperwork to representatives, claiming limited understanding of the details.
How he was found
- Japanese investigators tracked Hu’s movements after determining he had been operating inside Japan, searched multiple luxury hotels in Osaka and identified him through security camera footage. Officers arrested him in Osaka after locating him during the probe.
- Two Chinese nationals have also been arrested for reportedly filing the residency-change paperwork on Hu’s behalf. Authorities seized smartphones and other electronic devices for forensic analysis.
Business footprint in Japan
- Corporate filings reviewed by Asahi show Hu led a Tokyo-based trading company established in Adachi Ward in April 2023. The company’s capital reportedly rose from ¥8 million to ¥50 million by March 2026, and its registered address was later moved to Chiyoda Ward.
- Records indicate Hu changed his listed addresses several times, including locations in London, Tokyo’s Minato Ward, Osaka Prefecture and Chuo Ward—the address cited in the arrest allegations.
Wider enforcement context
- U.S. prosecutors have alleged Prince Group operated as the hub of a global criminal network that orchestrated crypto investment fraud, scam compounds, money laundering and human trafficking. In court filings, the DOJ sought forfeiture of more than 127,000 Bitcoin allegedly tied to Chen Zhi and his associates—valued at roughly $15 billion at the time—making it one of the largest crypto seizure efforts on record. Prince Group has denied the allegations.
- Hu’s arrest follows a string of enforcement actions: in January 2026 Cambodian authorities arrested Prince Group founder Chen Zhi and deported him to China, and in April 2026 Chinese authorities extradited former Huione Group chairman Li Xiong from Cambodia. Investigators and blockchain analysts have connected Huione Group to laundering proceeds from online fraud operations that authorities attribute to the broader syndicate.
Current status
- Japanese police have not publicly said whether their inquiry into Hu extends beyond the residency-fraud allegations. The Metropolitan Police Department is continuing to examine his business activities and any operational links between Prince Group and activities inside Japan.
Why it matters
- The arrest underscores growing cross-border pressure on alleged crypto fraud networks and highlights how authorities are using immigration records, corporate filings and surveillance to trace suspected organizers who move across jurisdictions. As global enforcement intensifies, investigators are increasingly targeting the financial and physical infrastructure that enabled large-scale crypto fraud.
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