BlockBeats News, October 17th, multiple branches of Huione Group in Cambodia are currently experiencing large-scale queues for withdrawals, indicating a possible bank run. The number of people queuing for withdrawals at Huione branches in Phnom Penh and Sihanoukville ranges from dozens to hundreds, with lines extending outside the branch.
This “bank run” stems from the recent U.S. sanctions against CHEN ZHI, the Chairman of Prince Group in Cambodia. On October 14th, the U.S. sought to seize 127,271 Bitcoins (approximately $12 billion) associated with CHEN ZHI’s transnational “Ponzi scheme” fraud operations. Subsequently, on October 16th, $2.4 billion worth of Bitcoin from a wallet linked to Chen Zhi was once again transferred, following a prior revelation of the seizure of $14.1 billion worth of Bitcoin, indicating that the U.S. government may have additionally confiscated $2.4 billion worth of Bitcoin from Chen Zhi. Market rumors suggest that these sanctions may impact Huione Group’s assets.
The U.S. Office of Foreign Assets Control (OFAC) has imposed comprehensive sanctions on 146 targets within the Prince Group Transnational Criminal Organization (Prince Group TCO), headquartered in Cambodia and led by CHEN ZHI, which operates a transnational criminal empire through online investment scams targeting the U.S. and other global regions. In recent years, Huione Group has faced international regulatory pressure due to allegations of money laundering, online scams (such as “Ponzi schemes”), and illicit transactions. In March 2025, the banking license of its payment platform, Huione Pay, was revoked by the National Bank of Cambodia, leading to difficulties in fund withdrawals for users and triggering a large-scale run on the bank. In the first half of this year, the U.S. Treasury Department’s Financial Crimes Enforcement Network proposed to ban Huione Group from accessing the U.S. financial system.
