Japan arrests Prince Group figure linked to fraud network

• Tokyo's Metropolitan Police Department arrested Hu Xiaowei, 44, a Cypriot national also known as Hu Shi, on suspicion of submitting false residency information to Japanese authorities, according to The Asahi Shimbun.
• Police allege Hu filed a fraudulent resident registration notice in April, falsely claiming he had moved to Tokyo's Chuo Ward, and was subsequently arrested on 14 June.
• Hu reportedly told investigators he transferred his residency registration to Tokyo in order to obtain permanent residency in Japan, whilst also claiming he had left the process to representatives and did not fully understand the details.

Japanese authorities suspect Hu is the same individual identified as "Chen Xiaoer," a name included in US sanctions imposed on Prince Group and its affiliates in October 2025.

The US Treasury and Department of Justice announced sanctions against 146 related individuals and entities, alleging the Cambodia-based organisation operated international online investment fraud schemes, including pig-butchering scams — a type of fraud where victims are manipulated into fake cryptocurrency investments.

Investigators had not publicly identified Hu's whereabouts prior to the arrest, but determined through surveillance that he had been operating inside Japan.

Police searched several luxury hotels in Osaka and identified Hu through security camera footage before arresting him in the city.

Corporate records reviewed by Asahi show that a company led by Hu was established in Tokyo's Adachi Ward in April 2023 for trading-related operations, with its capital reportedly increasing from ¥8 million to ¥50 million by March 2026.

The company later relocated its registered address to Tokyo's Chiyoda Ward, and filings show Hu changed his registered address multiple times across locations in London, Tokyo's Minato Ward, Osaka Prefecture, and Chuo Ward.

The Metropolitan Police Department also arrested two Chinese nationals accused of filing the residency change paperwork on Hu's behalf, with investigators seizing smartphones and other electronic devices for analysis.

Hu's arrest follows a broader series of enforcement actions, including the January 2026 arrest and deportation of Prince Group founder Chen Zhi from Cambodia to China following the revocation of his Cambodian citizenship.

US prosecutors alleged in court filings that Prince Group functioned as the centre of a criminal network involved in cryptocurrency investment fraud, money laundering, human trafficking, and scam compounds across Southeast Asia, though Prince Group has denied the allegations.

The US Department of Justice sought the forfeiture of more than 127,000 Bitcoin allegedly connected to wallets controlled by Chen and his associates, with court filings valuing the holdings at roughly $15 billion — marking one of the largest cryptocurrency seizure actions ever pursued by US authorities.

In April 2026, Chinese authorities extradited former Huione Group chairman Li Xiong from Cambodia, with officials identifying him as a core member of the Chen Zhi syndicate, as investigators continue to target figures linked to online fraud networks across the region.

At the time of reporting, Bitcoin price was $64,053.49.