James

Virgin

Commonwealth

Victims of scams tied to Chen Zhi, the Prince Group founder held in China after extradition from Cambodia, received hope of potential claims against the estate, according to court-appointed liquidators for 30 British Virgin Islands (BVI) companies linked to Prince Group.&nbsp;
That update ignites hopes of a possible recovery for Chen Zhi’s victims regardless of their country, including China. It also represents a clearer path to recovery compared to the US, where the Trump Justice Department has knocked down victims’ attempts to make claims on the Bitcoin it seized from scam operations tied to Zhi.
<h3 id="span-style-font-weight-400-what-did-chen-zhi-liquidators-tell-victims-span">What did Chen Zhi liquidators tell victims?</h3>
Per comments shared with Caixin on October 28, the joint provisional liquidators noted that there was no process to file claims or distribution outlets yet.&nbsp;
However, they laid out the foundations for any potential future payout for victims if enough money is recovered to pay creditors when the case finally moves into full liquidation. In that scenario, the liquidators said they would adjudicate and distribute based on a claims procedure built under BVI insolvency law.
BVI insolvency is collective, and eligibility is not subject to claimants’ nationality or home jurisdiction.
<h3 id="span-style-font-weight-400-who-is-handling-the-prince-group-claims-process-span">Who is handling the Prince Group claims process?</h3>
The <a href="https://gov.vg/news/government-virgin-islands-issues-update-actions-related-prince-group" rel="noopener noreferrer nofollow">British Virgin Islands’ High Court</a> appointed Paul Pretlove, James Drury and David Standish of the Interpath advisory firm as joint provisional liquidators on January 9, 2026. The liquidators’ role, <a href="https://interpath.com/media-hub/articles/liquidators-from-interpath-appointed-to-companies-within-prince-group/" rel="noopener noreferrer nofollow">per Interpath</a>, is to trace and preserve assets so that creditors harmed by the alleged crimes can eventually reclaim some of their losses.
The appointment came after BVI Attorney General Dawn Smith, acting on a US bankruptcy filing, petitioned the court to wind the companies up on just and equitable grounds.
The January 5 application named <a href="https://www.cryptopolitan.com/prince-group-founder-chen-zhi-asset-seizure/" rel="noopener noreferrer nofollow">Prince Global Holdings Limited</a> and affiliates among the 30 listed entities.&nbsp;
According to Interpath, 28 of the listed firms were implicated in <a href="https://justice.gov/usao-edny/pr/chairman-prince-group-indicted-operating-cambodian-forced-labor-scam-compounds-engaged" rel="noopener noreferrer nofollow">October 2025 sanctions</a> that branded 146 Prince Group-linked targets as part of a transnational criminal organization. That designation came from the UK’s Foreign, Commonwealth and Development Office in coordination with the US Treasury’s OFAC and FinCEN.&nbsp;
The other two appeared in an October 14, 2025, civil forfeiture complaint filed in the US.
<h3 id="span-style-font-weight-400-is-chen-zhi-fighting-victims-claims-span">Is Chen Zhi fighting victims’ claims?</h3>
<a href="https://china.caixin.com/2026-10-28/102498070.html" rel="noopener noreferrer nofollow">According to Caixin</a>, citing the liquidators it spoke to, their appointment and actions have been challenged across several jurisdictions by people claiming to be representatives of Chen himself, Prince Group entities, or associated interests.
Chen is being held in China after his extradition from Cambodia in January 2026.&nbsp;
That fight reached a US courtroom. In Chapter 15 proceedings before the Southern District of New York bankruptcy court, Cosimo Borrelli, who says he is the sole director of most of the debtor companies, objected to recognition of the BVI case.&nbsp;
The <a href="https://caselaw.findlaw.com/court/us-ban-crt-s-d-new-yor/144421.html" rel="noopener noreferrer nofollow">court overruled him</a> and recognized the BVI proceedings as the foreign main proceeding. Court papers note that Borrelli’s lawyers, Boies Schiller Flexner, also represent Chen in the <a href="https://www.nysb.uscourts.gov/sites/default/files/opinions/334560_82_opinion.pdf" rel="noopener noreferrer nofollow">New York forfeiture case</a>.
<h3 id="span-style-font-weight-400-zhi-s-us-victims-have-lost-claims-to-bitcoin-span">Zhi’s US victims have lost claims to Bitcoin&nbsp;</h3>
The contrast with the US asset pool is sharp. The Justice Department made the largest asset forfeiture in its history when it seized about 127,271 BTC from the group in October 2025. The haul was worth roughly $15 billion at the time, with Bitcoin trading near its all-time high in that month.&nbsp;
The forfeiture is not final even though the coins have been in <a href="https://docs.justia.com/cases/federal/district-courts/new-york/nyedce/1:2025cv05745/537552/506" rel="noopener noreferrer nofollow">government custody since</a>.
The <a href="https://www.icij.org/investigations/coin-laundry/questions-swirl-around-us-plans-for-record-15b-prince-group-crypto-seizure/" rel="noopener noreferrer nofollow">DOJ has rejected claims</a> filed by lawyers for hundreds of alleged victims, citing reasons such as a lack of specific evidence tying each case to the seized coins.&nbsp;
The BVI estate now looks like the cleaner path for victims to be heard.
Chen faces fraud and illegal gambling charges in China and up to 40 years if convicted in the US. Prince Group has denied wrongdoing.<a href="https://www.cryptopolitan.com/cambodia-freezes-prince-group-assets/" rel="noopener noreferrer nofollow">Cryptopolitan reported</a> that Cambodia froze nearly $1 billion in assets belonging to Prince Group.
The smartest crypto minds already read our newsletter. Want in? <a href="https://www.cryptopolitan.com/newsletters/?utm_source=cp&amp;utm_medium=web&amp;utm_campaign=inlineAds" rel="noopener noreferrer nofollow">Join them</a>.

BVI liquidators open claims door for Prince Group CEO Chen Zhi’s victims

Table of Contents

Cryptopolitan_News

Other articles published on Oct 28, 2026

Join our free newsletter for daily crypto updates!