Shé Zhijiang Case Deep Dive: The National Secrets of Two Major Cyber Fraud Empires

In November 2025, the main culprit of the “Asia-Pacific New City” criminal group in Myaungmya, Myanmar, Shé Zhìjiāng, was successfully extradited from Thailand. Two months later, Chen Zhi, founder of the Cambodian Taizi Group, was also deported. The consecutive breakthroughs in these two major cases marked a thorough reshaping of the Southeast Asian cyber fraud landscape—once the three major cross-border cyber fraud empires declared their collapse, and the arrest of Shé Zhìjiāng and Chen Zhi revealed a deeper criminal ecosystem rooted in Southeast Asia: different national conditions breed different black industries, and cross-border judicial cooperation has become the key to precise strikes.

Shé Zhìjiāng and Chen Zhi’s Dual Trajectories: The Divergence of Two Criminal Empires

If Chen Zhi represents the “Red-Top Black Industry”—growing by embedding in legitimate economies and seeking rent from official protection—then Shé Zhìjiāng is a typical “Separatist Black Industry”—dependent on local armed forces and building independent kingdoms. Although both are giants in the cross-border cyber fraud field, they have taken completely different paths.

Born in 1982, Shé Zhìjiāng’s life story is legendary. He initially made his fortune by operating online casinos in the Philippines, later convicted for illegal lottery operations, and to evade crackdown, acquired Cambodian nationality and changed his name to “Shé Lúnkǎi.” The real turning point came in 2017—Shé Zhìjiāng entered Myaungmya, Myanmar, and formed deep cooperation with Sòu Qíduō, leader of the Kachin Border Guard Force. Sòu Qíduō’s armed forces hold absolute regional control, providing Shé Zhìjiāng with a “lawless zone” stage.

On this fragmented soil, Shé launched the notorious “Asia-Pacific New City” project. Officially claiming to invest $15 billion and cover 180,000 acres, the “Smart New City” was actually a hub for gambling, scams, and human trafficking. Known externally as “KK Park,” it provided venues, shelter, and industrial chain support for 248 cyber fraud groups.

From “Landlord” to “Pimp”: Shé Zhìjiāng’s Black Industry Chain

Unlike Chen Zhi’s “self-operated scams,” Shé Zhìjiāng’s genius was in platforming and industrializing crime. He transformed the park into a standardized cyber fraud production base, renting out sites to scam groups and collecting protection fees, becoming a true “black industry landlord.” The entire industry chain was complete: from human traffickers in Thailand (selling a person for 300,000–400,000 yuan, with 100,000 yuan used to bribe border police), to property management and catering within the park, to scam operators (“bosses”) and trapped “pigs,” forming a closed loop of “recruitment-transportation-imprisonment-scam-profit-sharing.”

This criminal empire caused enormous damage to China: over 200 gambling platforms attracted 330,000 participants nationwide, with involved amounts exceeding 2.7 billion yuan. Even more heinous, nearly 50,000 people were trapped in Myaungmya, with fewer than a hundred escaping annually. The park was under militarized management; disobedient individuals faced beatings or even death. Escapees describe it as a “hell on earth.”

In 2021, China’s Ministry of Public Security issued a red notice through INTERPOL. In August 2022, Thai police arrested him in Bangkok. After over three years of cross-border judicial battles, in November 2025, Shé Zhìjiāng was finally extradited back to China and subsequently detained by the Zhenjiang Public Security Bureau.

Chen Zhi’s “Red-Top” Path: Legal Front for Crypto Whitewashing

Contrasting sharply with Shé Zhìjiāng’s “barbaric growth,” Chen Zhi, born in 1987, took an elite criminal route. He mastered the art of “whitewashing,” cloaking his entire black industry empire under the shiny guise of “international corporate groups.”

Starting in 2015, Chen Zhi began to build a global criminal network. His core strategy was “legitimizing illegal activities”—setting up seemingly legitimate companies in over 30 countries, covering real estate, banking and finance, tourism, tech R&D, and more. These companies were actually fronts for cyber fraud. With this diversified operation model, the Taizi Group quickly established a foothold in Cambodia.

A turning point came in July 2020—then-Cambodian Prime Minister Hun Sen personally awarded Chen Zhi the Oknha title. This honor cemented Chen’s identity as a “red-top businessman” and provided official protection for his criminal activities.

Chen’s real killer app was his “global scam + crypto money laundering” closed loop. On the scam side, Taizi Group broke traditional regional limits, even establishing a “Brooklyn Network” in the U.S., using “high-yield crypto investments” as bait to deceive over 250 victims in the U.S. for more than $18 million.

On the capital side, Chen Zhi exploited regulatory loopholes in cryptocurrencies, founding LuBian mining pools, investing scam proceeds into Bitcoin mining. The operation was simple yet sinister: using fraud proceeds to start mining, “laundering” illegal funds through mining. By 2020, Chen Zhi had accumulated approximately 127,000 Bitcoins, worth over $15 billion at current market prices. He boasted to team members that mining was “profitable because there are no costs”—implying that the “no-cost” was derived from fraud proceeds.

Ironically, this massive wealth unraveled in a “black eats black” incident. In December 2020, the core Bitcoin wallet of LuBian mining pool was hacked, and all 127,000 Bitcoins were stolen. Chen Zhi’s team posted over 1,500 pleas on the blockchain, even offering ransom, but to no avail.

The turning point came in the U.S. When these stolen Bitcoins lay dormant for four years, in 2024 they were transferred to a new address. The U.S. Department of Justice launched tracking efforts, seizing the assets under the claim of “money laundering,” setting a record for the largest single asset forfeiture in U.S. judicial history. In October 2025, the U.S. DOJ filed criminal charges against Chen Zhi for telecommunications fraud and money laundering. In January 2026, he was arrested in Cambodia and deported back to China.

Two Countries, Two Black Industries: Myanmar’s Separatism and Cambodia’s Rent-Seeking

The rise of Shé Zhìjiāng and Chen Zhi fundamentally stems from the vastly different national conditions of Myanmar and Cambodia.

Myanmar’s “Lawless Zone”

After independence, Myanmar plunged into over 70 years of civil war, with the central government unable to effectively control minority regions. Kachin State, where Myaungmya is located, is an autonomous zone controlled by local armed forces—Kachin Independence Army (KIA)—which, while nominally under the central government, actually holds absolute regional control. This fragmented pattern provides fertile ground for black industries.

Local armed forces face enormous military expenses; traditional drug trafficking and border trade profits are no longer sufficient. Cyber fraud, gambling, and other black industries have become quick ways to amass wealth. Sòu Qíduō’s protection of Shé Zhìjiāng is essentially an interest exchange—“Asia-Pacific New City” brought huge tax revenue and “share dividends” to the Kachin armed forces, which in turn provided land and security, forming a "warlord + black industry"利益共同体.

Moreover, Myanmar’s underdeveloped economy, widespread poverty, and low education levels provide ample “human resources.” People lured by “high salaries” into the park often end up imprisoned and exploited as “pigs.”

Cambodia’s “Rent-Seeking Environment”

Unlike Myanmar’s fragmentation, Cambodia has a relatively centralized system, with stronger government control. However, this concentration of power also breeds corruption. To attract investment and promote economic growth, the government adopts a “lenient regulation” approach toward foreign enterprises, with clear “power-money” quid pro quo rules.

Chen Zhi precisely exploited this “rent-seeking logic.” Through large-scale investments in real estate, finance, and other sectors, he brought tax revenue and employment to the Cambodian government, gaining official recognition and honors. The government, in turn, provided protection through “streamlined approval” and “official honors,” creating a "political-business collusion"利益链.

Post-pandemic, Cambodia’s economy faced difficulties, increasing the urgency for investment. Chen Zhi seized the opportunity, becoming a “model enterprise” for Cambodia’s economic recovery, further solidifying his “legitimate status.” Meanwhile, Cambodia’s weak financial regulation and gaps in cryptocurrency oversight facilitated Chen’s “crypto money laundering.”

Two Downfalls, Two Lessons: Judicial Cooperation for Precise Crackdowns

The arrest of Shé Zhìjiāng and Chen Zhi reflects different judicial cooperation paths.

For Shé Zhìjiāng’s “separatist black industry,” the key is regional judicial cooperation. China’s police issued a red notice via INTERPOL, Thailand’s police carried out the arrest, and ultimately, through the China-Thailand extradition treaty, he was repatriated. This is a victory for “China-Thailand judicial collaboration,” demonstrating that regional cooperation can effectively cut off cross-border black industry transfer chains.

For Chen Zhi’s “rent-seeking black industry,” the key is transnational judicial linkage. The U.S. Department of Justice used blockchain tracking to precisely locate stolen Bitcoins and seized assets under the claim of “money laundering.” The Cambodian government cooperated under international pressure, arresting and deporting him. This exemplifies “China-U.S. judicial cooperation,” showcasing the power of global financial regulation.

Reshaping Governance Frameworks: From Differentiation to Global Collaboration

The downfall of these two empires marks a victory for a certain stage, but cross-border cyber fraud governance remains incomplete.

For Myanmar’s fragmented black industry, the core is strengthening regional judicial cooperation + improving local governance. This involves deepening communication with Myanmar’s central government and armed forces, establishing regular intelligence sharing and joint law enforcement mechanisms; simultaneously, increasing international aid to help Myanmar develop legitimate industries, fundamentally eliminating the soil for black industry. Additionally, cooperation with neighboring countries like Thailand and Laos should be enhanced to cut off “personnel transport chains.”

For Cambodia’s rent-seeking black industry, the focus is deepening bilateral judicial cooperation + promoting anti-corruption efforts. This includes improving extradition treaties, evidence exchange mechanisms, and strengthening oversight of political-business collusion; also, helping Cambodia establish sound cryptocurrency regulations to close regulatory gaps.

At the global level, cross-border cyber fraud governance requires building a “multilateral coordination” governance network. The U.S. DOJ’s investigation of Chen Zhi provides a model—using blockchain tracking for precise cross-border black industry fund localization, international warrants, and asset freezes to form a global blockade. Future efforts should promote the creation of a “Global Anti-Cyber Fraud Alliance,” integrating law enforcement resources worldwide, sharing crime intelligence, standardizing judicial procedures, and forming a “crackdown–fugitive追逃–asset recovery” global closed loop.

Simultaneously, global regulation of cryptocurrencies must be strengthened, encouraging countries to establish unified frameworks to eliminate regulatory arbitrage, fundamentally curbing cross-border black industry capital flows.

Alarm and Reflection: New Trends in Black Industry Evolution

The collapse of Shé Zhìjiāng and Chen Zhi’s empires is a firm declaration of China’s “must investigate every case, pursue every escape,” and a victory for transnational judicial cooperation. But vigilance is necessary: as enforcement intensifies, criminal groups may shift to other weak-governance countries or evolve into more covert modes.

This requires governance systems to precisely understand different national conditions and adopt “differentiated” strategies; also, to strengthen global coordination and build a “cornerless” governance network. Only then can the malignant tumor of cross-border cyber fraud be eradicated, safeguarding the property and lawful rights of people worldwide, illuminating every “lawless zone” with the light of justice.