Prince Group's Li Xiong is arrested; Huiawon exposes $24 billion in crypto money laundering

China’s Ministry of Public Security announced on April 1 that Li Xiong, a core member of the Prince Group leadership, had been escorted from Phnom Penh, the capital of Cambodia, back to China. He is suspected of committing multiple crimes, including fraud, money laundering, operating a gambling den, and concealing and disguising proceeds of criminal activity. Li Xiong previously served as chairman of Huione Group (Huione Group), which is affiliated with the Prince Group. According to Elliptic, since 2021, crypto wallets used for Huione Guarantee and by merchants on its platform have received a cumulative total of more than $24 billion.

Li Xiong’s Escort Process and Cambodia’s Coordinated Actions

A video released by the Criminal Investigation Bureau of China’s Ministry of Public Security shows that after Li Xiong was arrested in Phnom Penh, he was escorted onto the plane by Chinese special police. Before departing the country, his head was covered with a black hood. After arriving in China, he was taken off the plane with handcuffs on. The special police removed the hood and immediately took him away. Cambodia’s Ministry of Interior has officially revoked Li Xiong’s Cambodian nationality, and this operation was carried out with Cambodia’s cooperation.

Li Xiong is the second major member of the Prince Group, after the boss Chen Zhi, to be escorted back to China. Chen Zhi was sent back to China from Cambodia for trial in January this year. The Ministry of Public Security said that “multiple core members of the group have been arriving in custody one after another.”

Huione Group’s Three Main Alleged Criminal Businesses and the Scale of Its Crypto Funds

Huione Group was founded by Li Xiong in Cambodia in 2018. All three of its business divisions are involved in criminal allegations:

Huione Guarantee: Identified as the largest online illegal market in history. Platform merchants publicly provide money laundering, cross-border remittance, and crypto asset conversion services. Clients include North Korean hacker organizations and Southeast Asian scam groups. Merchants also mark the types they accept according to the degree of risk that the funds may be frozen

Huione Pay PLC: A Cambodian payment company established in 2018, serving as the group’s core channel for illegal capital flows

Huione Entertainment: Coordinating the group’s overall criminal business operations

Elliptic data shows that from August 2021 to January 2025, Huione Group confirmed money laundering amounts of at least $4 billion. Large amounts of funds circulated through the conversion of crypto assets such as stablecoins. Overall crypto currency flow has exceeded $24 billion. Elliptic noted that the actual scale may be higher.

U.S. Sanctions and International Judicial Gaps

Last year, the U.S. government imposed sanctions on the Prince Group and its affiliated entities. This is one of the largest financial sanctions actions in the United States in recent years. The charges include fraud, money laundering, and human trafficking. The Trump administration subsequently separately listed Huione Group on a money-laundering blacklist, excluding it from the U.S. financial system.

However, Chen Zhi was extradited to China rather than the U.S., which means the U.S. Department of Justice has nearly lost the chance to bring him back to the U.S. for trial. This is seen as a key gap in international judicial cooperation in this case. According to the U.S. indictment, Chen Zhi ran scam compounds in Southeast Asia and spent large sums to bribe officials in various places in order to keep operations running.

Frequently Asked Questions

What is the relationship between the Prince Group and Huione Group?

Huione Group is the core business entity under the Prince Group. Li Xiong, a core member of the Prince Group leadership, serves as chairman. Through its three business divisions, Huione provides payment channels, money-laundering services, and entertainment cover for the Prince Group’s overall criminal activities.

What does Huione’s $2.4 billion in crypto flow represent?

According to Elliptic’s on-chain analysis, $2.4 billion represents the cumulative flow of funds since 2021 through Huione Guarantee and the crypto wallets of its merchants. It includes proceeds from scams, illegal capital conversions, and transactions for money-laundering services. The confirmed amount of money laundering is at least $4 billion, and Elliptic says the actual figure may be higher.

What specific charges is Li Xiong facing?

The Ministry of Public Security’s accusations against Li Xiong include: operating a gambling den, cross-border fraud, illegal business operation, concealing and disguising proceeds of criminal activity, and alleged cross-border criminal activities involving directing money laundering of at least $4 billion. This case has been included in the scope of follow-up investigations as an extension of the series of major cases related to “Chen Zhi’s criminal syndicate.”