REEL How a Multibillion-Dollar Fraud Could Threaten Taiwan's National Security

TaiwanPlus News

On January 6, 2026, Chen Zhi, Chinese-born founder of Prince Group, was arrested in Cambodia for multibillion-dollar fraud and money laundering schemes, in a joint operation between Chinese and Cambodian authorities.   The case follows a trail of illegal funds flowing through Taiwan to overseas investments, raising alarms about how organized crime is undermining regional security. Authorities say over US$340 million was laundered through Taiwan, with around US$180 million in assets seized, from luxury real estate to designer goods and high-end vehicles.   So why is Taiwan watching this case closely? And what could it mean for the country’s national security?   Watch the full Zoom In Zoom Out episode on our YouTube channel.   Reporter: Alan Lu   Producers: Alec MacDonald/Isabel Wang   Videographer: Devin Tsai   Video Editor: Alison Nguyen   #TaiwanPlusNews #PrinceGroup #Taiwan #ChenZhi

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00:00Hooded and handcuffed.

00:01This is Prince Group Chairman Chen Zhi,

00:04who was arrested for multi-billion dollar fraud and money laundering,

00:07as he was deported to China from Cambodia in January.

00:11The Transnational Criminal Network has been found to launder

00:14over US$340 million in Taiwan,

00:18and the authorities have seized around US$180 million in assets.

00:24These include luxury properties, designer goods, and high-end vehicles.

00:29But why is Taiwan paying such close attention to this scam empire?

00:47The US indictment says Chen used his political influence

00:52to conceal the scam operations

00:54by leveraging his connections with top Chinese officials.

00:59To help the Chinese officials,

01:00you're not able to use money to賄賂 these people.

01:04But bribery isn't the only part of the story.

01:07Behind it is a broader web of ties between China and Cambodia.

01:10Of course, you can see that China and柬埔寨 are

01:14the same relationship between China and柬埔寨.

01:16Because柬埔寨 has a lot of依賴 China.

01:18In this case, Prince Group has managed to find its way

01:22to one of Taiwan's last remaining diplomatic allies, Palau.

01:27Investigators in Taipei found that during the COVID-19 pandemic,

01:30Prince Group used the resort in Palau as a money-laundering hub.

01:34The facility was provided by a retired Taiwanese national security officer.

01:39And investigators now suspect the resort was complicit in the operation.

01:43In recent years, more money has been poured into resorts and land development projects in Palau.

01:49These investments not only give Prince Group economic leverage over the Pacific Island nations,

01:54but also raise security concerns.

01:57These small activities in Palau are linked to a larger, wider effort,

02:01possibly directed from Beijing to threaten, to coerce, and to put pressure.

02:08The unraveling of Prince Group has sent shockwaves across the Asia-Pacific.

02:13Countries in the region have launched investigations.

02:17But with Chen back in China, connecting the dots have become even more difficult.

02:22Here in Taiwan, eight rounds of searches related to Prince Group have been carried out.

02:27And in early March, prosecutors in Taipei have formally indicted Prince Group suspects, including Chen Zhu.

02:33The Prince Group case in Taiwan have involved a total of 62 defendants and 13 companies.

02:39But so far, no victims have come forward to report losses.

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