Chinese authorities have detained Li Xiong, the former chairman of Huione Group, in a major move targeting a global money-laundering network operating across Southeast Asia. The arrest, carried out on Wednesday, marks an escalation in China’s efforts to combat cross-border organised financial crime.
Li, a Chinese national, was extradited from Phnom Penh with the assistance of Cambodian authorities. According to Chinese state media, he is suspected of fraud, concealing criminal proceeds, and running illegal operations including unauthorised casinos.
The case centres on Huione Group, which had been identified by investigators as a key player in facilitating global money laundering activities linked to online scams. Authorities allege that the company provided services enabling criminals to move illicit funds across borders while obscuring their origins.
Chinese officials have intensified crackdowns in Southeast Asia in recent years, targeting both scammers and the financial networks supporting them. These operations often involve online fraud schemes run from secured compounds, with victims and perpetrators frequently including Chinese nationals. Some individuals involved are believed to have been trafficked and forced into participation.
The investigation also connects Huione Group to Prince Group, a larger entity previously sanctioned by the United States. U.S. prosecutors have accused the group of orchestrating investment scams that defrauded victims of billions of dollars. Its chairman, Chen Zhi, was extradited to China earlier this year.
China’s Ministry of Public Security confirmed that multiple key members of Chen Zhi’s alleged criminal network have now been arrested. State television footage showed Li arriving in custody, escorted by Chinese officers following his extradition.
For years, cooperation between Chinese and Cambodian authorities resulted mainly in the arrest of lower-level operatives, while senior figures behind large-scale fraud and laundering operations remained beyond reach. The latest extraditions suggest a shift, with Cambodia increasing its cooperation under pressure from Beijing.
The United States has also taken action against the network. Authorities sanctioned Prince Group and related entities, while seizing nearly $15 billion in cryptocurrency linked to Chen Zhi’s operations — one of the largest such seizures on record. American prosecutors have filed charges against Chen, including wire fraud and conspiracy to commit money laundering.
Separately, Huione Group was blacklisted by U.S. authorities as a money-laundering operation, effectively cutting it off from the American financial system. Investigations estimate that Huione and its affiliates processed at least $4 billion in illicit funds, with some estimates suggesting significantly higher volumes when including activity on associated online marketplaces.
Despite maintaining legitimate services such as payment processing and financial products in Cambodia, investigators found that the group’s primary revenue was derived from illicit operations. These included tailored money-laundering services and platforms connecting criminals with financial facilitators.
In December, Cambodia’s central bank announced that Huione Group had entered liquidation after its operating licence was revoked, marking a significant step in dismantling one of the region’s most prominent financial crime networks.