Tokyo police detained 44-year-old Cypriot citizen Hu Shi, also known as Hu Xiaowei, on suspicion of irregularities in official residence registration. Japanese officials assess that Hu may be a high-level name within the Cambodia-based Prince Group network.
The focus of the investigation is the declaration of residence
According to the investigation file, Hu provided false information when reporting a change of address in Tokyo in April. Police announced that the detention was carried out on June 14. In his statement, he said that he was trying to get a permanent residence permit in Japan and that an intermediary carried out part of the paperwork process.
Japanese investigators stated that Hu may be a senior manager within the broader Prince Group structure and that the irregularity in his address declaration was examined within this framework.
In the sanctions and investigation documents previously published by the US authorities, it was stated that structures affiliated with the Prince Group were associated with online investment fraud activities in many countries. Japanese police are also considering the possibility that Hu may have been involved in a cross-border structure linked to this network.
US sanctions documents attracted attention
In October 2025, the US Department of Treasury and the Department of Justice included 146 individuals and organizations linked to fraud operations based in Cambodia on the sanctions list. Official records claim that these structures carry out investment fraud through call center-like mechanisms targeting victims in different regions.
Japanese officials assess that Hu may match the name “Chen Xiaoer” mentioned in the sanctions documents. It was reported that the head of the group mentioned in the investigation was previously detained in Cambodia and later handed over to Chinese authorities. It was stated that the investigation into other high-level names is continuing.
According to police records, Hu’s movements between London, Tokyo and Osaka were tracked; It was reported that security camera footage was effective in determining his location in Osaka.
Digital payment channels are also under scrutiny
In investigation files and sanctions records, the possibility of a cross-border financial structure combining offshore companies and digital payment channels was pointed out. Although the public sometimes describes this network as a crypto-asset-supported fraud scheme, official documents mainly focus on investment fraud and online deception activities. A verified mechanism specific to Bitcoin was not explicitly mentioned.
Mini dictionary: Offshore company refers to a company structure that registers its activities or assets in countries that offer low taxes or different legal regimes. Digital payment channels include electronic payment infrastructures used in cross-border money transfers.
Authorities state that similar criminal networks can use the traditional banking system, chain of companies and digital asset transfers together. It is stated that such multi-layered structures, combined with identity changes and company relationships spanning different jurisdictions, make it difficult to trace the flow of money.
Warnings about similar methods are increasing
On the other hand, the FBI recently warned against a new method targeting people who have previously lost money in crypto assets. It was stated that in this method, fraudsters introduce themselves as lawyers and demand money from the victims again. The latest development has brought international concerns about the capacity of financial crime networks to act together with digital payment systems to the agenda again.
