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PHNOM PENH, Cambodia – Cambodian authorities have extradited Li Xiong, a Chinese-Cambodian businessman with alleged ties to a massive online scam network, to China, according to official statements.
Li, formerly chairman of the Huione Group, was apprehended in Cambodia by a joint task force following a multi-month investigation, the Interior Ministry reported. He faces accusations that include operating illegal gambling operations, fraud, unlawful business activities, and money laundering, according to China’s Ministry of Public Security cited by state media.
Authorities believe Li to be a senior figure in a criminal syndicate led by Chen Zhi, founder of the Prince Holding Group, who was extradited earlier this year. Both men had their Cambodian citizenship revoked prior to their transfer to China. Their companies have denied any involvement in illegal activity.
In related developments, U.S. prosecutors charged Chen in October with orchestrating a multinational fraud scheme, alleging his businesses were used to launder illicit proceeds. The indictment claims Chen’s scam operation generated up to $30 million daily.
Experts note that Southeast Asia, particularly Cambodia and Myanmar, has seen a surge in cybercrime rings profiting from global victims. These illicit networks are often linked to human trafficking, employing foreign nationals under false pretenses and forcing them into exploitative conditions to run romance and cryptocurrency scams.
The Huione Group has been designated by the U.S. Treasury Department as a primary money laundering concern, accused of facilitating billions in transactions for criminal organizations, including North Korean hackers.
Consequently, Huione’s access to the U.S. financial system has been restricted. Additionally, the National Bank of Cambodia revoked the license of Huione’s digital banking service, Huione Pay, citing its involvement in unlawful online marketplaces.
In response to the growing threat, Cambodian lawmakers recently passed legislation imposing sentences up to life imprisonment for those involved in online scam operations, with the government committing to dismantle such networks by the end of April.