Japanese authorities have arrested Hu Xiaowei, a senior figure reportedly connected to Cambodia-based Prince Group, as investigations into a global cryptocurrency fraud and money laundering network continue to expand.
The arrest marks the latest development in a growing international crackdown on organizations and individuals allegedly involved in large-scale crypto-related scams across Asia.
Japanese Police Arrest Hu Xiaowei
According to reports from Japanese media outlet The Asahi Shimbun, Tokyo Metropolitan Police arrested 44-year-old Hu Xiaowei, a Cypriot national also known as Hu Shi, on June 14.
Authorities allege that Hu submitted false residency information to Japanese officials in April, claiming that he had relocated to Tokyo’s Chuo Ward. Investigators believe the information was inaccurate and may have been used as part of an effort to obtain permanent residency status in Japan.
During questioning, Hu reportedly stated that representatives handled the residency process on his behalf and claimed he did not fully understand the details of the application.
Japanese investigators suspect Hu may also be the same individual identified as “Chen Xiaoer,” a name previously included in U.S. sanctions targeting Prince Group and its affiliated entities.
Investigation Expands Beyond Residency Allegations
The arrest has drawn significant attention because of Hu’s alleged connections to Prince Group, a Cambodian conglomerate that has been the focus of multiple international investigations.
Authorities reportedly spent months tracking Hu’s movements inside Japan after determining he was operating within the country. Investigators eventually located him through security camera footage captured at several luxury hotels in Osaka before carrying out the arrest.
Police are now examining Hu’s broader business activities in Japan.
Corporate records indicate that a company linked to Hu was established in Tokyo in April 2023 for trading-related operations. The firm’s capital reportedly grew from ¥8 million to ¥50 million by March 2026, raising further questions about its activities and funding sources.
Investigators have also reviewed multiple address changes associated with Hu, including locations in London, Tokyo, Osaka, and other parts of Japan.
Additionally, two Chinese nationals have been arrested for allegedly submitting residency-related paperwork on Hu’s behalf. Authorities have seized electronic devices and continue analyzing digital evidence.
Prince Group Faces Growing International Pressure
Hu’s arrest comes amid increasing scrutiny of Prince Group and individuals connected to its operations.
In October 2025, U.S. authorities imposed sanctions on 146 individuals and entities linked to the organization. The U.S. Treasury Department and Department of Justice alleged that the network was involved in large-scale online investment fraud schemes, including so-called “pig-butchering” scams that targeted victims worldwide.
Prince Group has consistently denied the allegations.
The sanctions were part of a broader effort by U.S. authorities to disrupt what prosecutors described as an international network involved in cryptocurrency fraud, money laundering, human trafficking, and scam compounds operating across Southeast Asia.
Founder Chen Zhi and Other Associates Targeted
The pressure on Prince Group intensified earlier this year.
In January 2026, Cambodian authorities arrested Prince Group founder Chen Zhi before deporting him to China following the revocation of his Cambodian citizenship.
U.S. prosecutors have also sought the forfeiture of more than 127,000 Bitcoin allegedly linked to wallets controlled by Chen and his associates. At the time, those holdings were valued at approximately $15 billion, making it one of the largest cryptocurrency seizure efforts ever pursued by American authorities.
Meanwhile, law enforcement agencies have continued targeting individuals connected to Huione Group, another organization allegedly linked to laundering proceeds from online fraud operations.
Earlier this year, former Huione Group chairman Li Xiong was extradited from Cambodia to China after authorities identified him as a key figure within the broader network.
What Happens Next?
At this stage, Japanese authorities have not disclosed whether their investigation extends beyond the alleged residency fraud case.
However, given Hu’s reported connections to Prince Group and ongoing international investigations, the case could become part of a much larger effort involving multiple jurisdictions.
Law enforcement agencies in Japan, the United States, Cambodia, and China continue to investigate financial activities linked to suspected crypto fraud networks operating throughout Asia.
As regulators and governments increase their focus on cryptocurrency-related crime, Hu Xiaowei’s arrest highlights the growing international cooperation being used to pursue individuals accused of participating in complex cross-border fraud and money laundering operations.
Whether the investigation uncovers additional evidence or leads to further arrests remains to be seen, but the case has already become another significant chapter in one of the largest crypto enforcement campaigns in recent years.
