1. Chinese victims of alleged online-scam and illegal-gambling operations tied to Cambodia’s Prince Group may eventually file claims against assets of the conglomerate’s founder, Chen Zhi, through a British Virgin Islands (BVI) liquidation process. Joint provisional liquidators, appointed to investigate and preserve assets held by 30 BVI entities allegedly controlled by Chen, said no claims or distribution process has yet been established. However, if the cases proceed to liquidation and sufficient funds are available, potential victims from any jurisdiction—including China—would be eligible to submit claims under BVI insolvency law. The liquidators emphasized that eligibility is not determined by nationality or jurisdiction, and any eventual process would aim to treat claimants “fairly and consistently.” [para. 1][para. 2][para. 3]
2. The prospect of compensation emerges as authorities in several jurisdictions move against Prince Group assets following Chen’s arrest and return to China. In October 2025, U.S. prosecutors charged Chen with telecommunications fraud and money laundering. The U.S. Treasury Department imposed sanctions on Chen and associated individuals and companies, while the Justice Department sought forfeiture of 127,271 bitcoin, valued at about 106.9 billion yuan ($16.04 billion). Chen was extradited to China on Jan. 7, 2026, and formally arrested about six months later on suspicion of fraud, operating casinos, intentional injury, and illegal business operations. [para. 4][para. 5][para. 6]
3. A day after Chen’s arrest, the BVI attorney general’s office announced that a court had granted an ex parte application appointing Paul Pretlove, James Drury, and David Standish from Interpath Advisory as joint provisional liquidators for Prince Group-related entities. Their tasks include taking control of the companies, tracing and preserving assets, and providing compensation to victims. However, their work has met significant resistance. Parties claiming to represent Chen, Prince Group entities, or other interested parties have challenged both their appointment and actions in several jurisdictions. Chen remains in Chinese custody, complicating assessment of his involvement in coordinating the challenges, though he reportedly signed a power of attorney days before being sent to China. The dispute has made the provisional liquidation more complicated, time-consuming, and costly than expected. [para. 7][para. 8][para. 9][para. 10][para. 11][para. 12]
4. One challenge came from Cosimo Borrelli, who told courts in New York and the BVI he was the sole director of 25 of the companies covered by the liquidation. Court documents show Borrelli was appointed from Feb. 23 to 27, 2026, by lawyers who had received broad powers of attorney from Chen while he was detained in China. Borrelli declined to disclose the appointment documents, citing attorney-client privilege. He argued that the BVI appointment was made in the public interest to assist the attorney general’s investigation, rather than to restructure or liquidate assets, and should not qualify as a foreign main proceeding under Chapter 15 of the U.S. Bankruptcy Code. He also objected to asset sales before a BVI ruling, claiming such steps would interfere with his authority to run the companies. [para. 14][para. 15][para. 18][para. 19]
5. The liquidators countered that Borrelli lacked standing and had failed to establish authorization to represent the companies. On June 11, the New York bankruptcy court agreed, recognizing the BVI case as a foreign main proceeding and the liquidators as foreign representatives. The court said the BVI proceeding furthered U.S. public interests by helping U.S. regulators investigate and wind up a transnational criminal organization. Borrelli appealed the ruling, and the appeal had not been decided as of publication. [para. 20][para. 21]
6. The BVI liquidation list includes 30 companies, most allegedly controlled by Chen, while the U.S. Treasury’s sanctions list named 28 BVI entities. Two companies on the liquidation list not sanctioned—Amber Hill Ventures Ltd. and Lateral Bridge Global Ltd.—were cited in U.S. proceedings as part of a broader Prince Group network with no apparent business purpose other than alleged money laundering. U.S. prosecutors alleged that more than 90,000 of the bitcoin targeted for forfeiture passed through those two companies and a Cayman Islands entity, Future Technology Investment. The liquidators said it was too early to characterize the role of any particular entity, with immediate priorities being obtaining books and records, identifying assets, and preserving their value. They have identified holdings in listed companies and real estate but lack a complete picture of the corporate network. [para. 23][para. 24][para. 25][para. 26]
7. One closely watched asset is an indirect interest in Habanos, the global Cuban-cigar company, controlled through a multilayer structure beginning with BVI-incorporated Simply Advance Ltd. The liquidators found no evidence that Chen made direct payments to Tabacalera, the Spanish business in the ownership chain, which they described as established, independent, and profitable. Their focus is on protecting the value of Simply Advance’s interest amid sanctions imposed by the U.S., U.K., and European Union. [para. 27][para. 28][para. 29]
8. Ding Jie, a partner at Duan & Duan Law Firm and the liquidators’ China legal adviser, said Chinese victims could file claims in the future if the liquidators’ authority withstands challenges and if doing so complies with Chinese law. For now, the liquidators are working with stakeholders across jurisdictions to stabilize and safeguard assets and hope to develop a working relationship with Chinese authorities on international cooperation. [para. 30][para. 31]
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