Japanese Authorities Arrest Prince Group Executive in $15 Billion Crypto Fraud Probe

Japanese police have arrested a senior executive linked to the Prince Group as part of an ongoing investigation into an alleged crypto investment scam network that has resulted in billions of dollars in losses worldwide. The case is one of the latest high-profile crypto arrests, highlighting growing international efforts to crack down on cryptocurrency-related fraud. 

The Tokyo Metropolitan Police Department arrested 44-year-old Hu Xiaowei, a Cypriot national who authorities believe is a key figure within the Cambodia-based Prince Group. According to reports, Hu was taken into custody on suspicion of submitting false residency information while applying for residency-related procedures in Japan. Two Chinese nationals were also arrested for allegedly helping with the paperwork.

Investigators say Hu filed documents claiming that he had moved to Tokyo’s Chuo Ward. It was later found out that there were irregularities with regard to his registration, and a further investigation was made. It was said that his location was monitored until he was arrested in Osaka, Japan.

The arrest has drawn international attention because of Hu's alleged connection to the Prince Group, an organisation that has been under investigation by authorities in several countries. U.S. officials have previously accused the group of operating large-scale online crypto investment scam schemes and money-laundering operations involving cryptocurrency. The alleged network has been linked to "pig butchering" scams, where fraudsters spend weeks or months building trust with crypto scam victims before persuading them to invest money into fake cryptocurrency trading platforms. 

In October 2025, the U.S. Department of Justice announced the seizure of approximately 127,271 Bitcoin connected to the investigation. At the time, the cryptocurrency was valued at around $15 billion, making it one of the largest crypto-related seizure actions ever carried out by U.S. authorities. Prosecutors alleged that the funds were tied to fraudulent investment operations targeting crypto scam victims across several countries.

The latest arrest comes months after Prince Group founder Chen Zhi faced legal action and extradition proceedings linked to the wider investigation. Authorities in the United States, the United Kingdom, China, and Japan have all taken action against individuals and entities believed to be connected to the network. These recent crypto arrests show that law enforcement agencies are increasingly working together to tackle global cryptocurrency fraud.

Japanese investigators are now examining the extent of Hu's activities inside the country and whether the alleged fraud network established a larger presence in Japan. The investigation remains ongoing, and officials have not announced any additional charges at this stage. Authorities continue to encourage crypto scam victims to report suspicious activity as early as possible. While recovering stolen cryptocurrency can be difficult, seeking professional crypto recovery assistance and reporting the fraud to law enforcement may improve the chances of tracing lost funds.