US expands sanctions against Prince allies; nine named in latest round

US expands sanctions against Prince allies; nine named in latest round

The United States has announced a new round of sanctions targeting individuals and companies allegedly connected to the Prince Group, the business conglomerate founded by Chen Zhi.

The latest action was taken by the U.S. Department of the Treasury through its Office of Foreign Assets Control (OFAC). According to the announcement, sanctions were imposed on nine individuals and 26 entities said to have direct or indirect links to the Prince Group network.

U.S. authorities now refer to the organization as the Prince Group Transnational Criminal Organization (Prince Group TCO).

Action Against Huione Group and H-Pay Service

The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) also took additional action involving the Huione Group. The measures included H-Pay Service PLC and any successor entity connected to the previously operating Huione Pay business.

According to U.S. authorities, the network allegedly played an important role in moving and consolidating proceeds connected to cybercrime and cryptocurrency investment scams. The government further alleged that these financial channels were used to transfer assets generated through fraudulent activities associated with the Prince Group.

Huione Pay PLC reportedly lost its operating licence from the National Bank of Cambodia in September 2024. The business was subsequently reported to have continued under the name H-Pay Service, whose licence was also revoked in March.

Chen Zhi and the Prince Group

Prince Group founder Chen Zhi was reportedly arrested and deported to China in January. The group subsequently ceased operations and entered liquidation during the same month.

The new sanctions target several individuals who U.S. authorities describe as being connected to the alleged Prince Group TCO network.

Among those named by OFAC are:

Hu Xiaowei, also known by several other names, who was described as a senior figure within the alleged organization and is reportedly under investigation by Singaporean authorities.

Ho Ho Ming, described as an associate of Hu Xiaowei and an officer in several companies.

Kong Ka On, who allegedly controlled or managed multiple companies in Hong Kong and the United Kingdom.

Li Hui, identified as another associate connected to Hu Xiaowei's business and asset-management network.

Brendon Luo and Qiu Weiren, described as major investors in an alleged Prince Group-linked scam compound.

Dai An, identified as a senior figure with alleged connections to Prince Huan Yu Real Estate.

Fang Zhizhen, accused by U.S. authorities of operating online payment gateways and allegedly laundering funds connected to scam operations.

Chen Bo, a director of multiple Prince Group-linked companies and the majority owner of Cambodia-based CCU Commercial Bank Plc.

Companies Included in the Sanctions

The sanctions also cover 26 companies and other entities. In addition to CCU Commercial Bank Plc, the list reportedly includes White Horse Hotel Management Group Co., Ltd., a Thailand-based hotel company said to be controlled by Yang Yanming, who had previously been sanctioned.

Many of the entities named in the action are reportedly registered in jurisdictions including the United Kingdom, Hong Kong, and the British Virgin Islands.

What the Sanctions Mean

According to OFAC, any property or financial interests belonging to designated individuals or entities that are located in the United States, or controlled by U.S. persons, must be blocked and reported to the agency.

The restrictions may also apply to companies that are owned, directly or indirectly, by sanctioned individuals. Unless specifically authorized by OFAC or covered by an exemption, U.S. persons are generally prohibited from conducting transactions involving blocked individuals or their property.

Financial institutions, businesses, and individuals may face civil or criminal consequences if they violate applicable sanctions rules. The restrictions generally prohibit providing funds, goods, or services to sanctioned parties or receiving such benefits from them.

According to the report, the U.S. government is also offering rewards exceeding US$1 million for information that leads to successful enforcement action against relevant targets.

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