BEIJING (Reuters): Li Xiong, a former leader at a Cambodian financial conglomerate accused of laundering money for crime organisations, has been extradited from Cambodia to China, Cambodia said on Wednesday, adding that the action showed it was cracking down on scam operations.
Li was a former chairman of the board at Huione Pay. He is accused of being a core member of Chinese-Cambodian businessman Chen Zhi's criminal syndicate, according to Chinese broadcaster CCTV.
Chen was extradited to China in January and is currently detained in China.
The U.S. said last October that it and the UK had taken action against Chen's Prince Group, calling it a transnational criminal empire involved in online investment scams, as well as against the Huione Group, which it accused of laundering the proceeds of such scams, as well as cyber heists conducted by North Korea.
Reuters was not able to seek comment from Huione, which has been dissolved.
A spokesperson from the Prince Group said Li Xiong and Huione Pay had never been employed by, associated with, or owned by Chen Zhi or the Prince Group of companies.
"Authorities around the globe have rushed to sanction, and now arrest, a broad array of individuals by claiming they are associates of Mr. Chen and Prince, without any foundation, evidence, or basis in fact for such wild and outrageous claims,” the spokesperson said, asking not to be named for security reasons.
The Huione Group allegedly laundered at least $4 billion worth of illicit proceeds between August 2021 and January 2025, according to the U.S. Treasury Department's Financial Crimes Enforcement Network.
China sent experts to Cambodia to help with the investigation, which led to the arrest, Cambodian government spokesperson Touch Sokhak told Reuters.
"This shows Cambodia’s will to clear out online scams and that Cambodia is not a safe haven for scam criminals," he said.
Mao Ning, China's foreign ministry spokesperson, told a regular news conference that China would continue to cooperate with Cambodia on combatting cross-border telecoms fraud.
(Reporting by Joe Cash in Beijing, Josh Smith and Poppy McPherson in Bangkok; Editing by Thomas Derpinghaus and Edwina Gibbs) -- Reuters
