US-sanctioned businessman Chen Zhi linked to Cuban cigar price surge

[El Presidente]

US-sanctioned businessman Chen Zhi linked to Cuban cigar price surge

https://www.thestandard.com.hk/wealth-and-investment/article/314734/US-sanctioned-businessman-Chen-Zhi-linked-to-Cuban-cigar-price-surge-Report

Chen Zhi, a Chinese-born businessman sanctioned by the United States and Britain over alleged human trafficking ties to a Cambodian cybercrime network, has reportedly been reported as a key figure behind a dramatic surge in global Cuban cigar prices.

The report, from East Week magazine, a sister publication of The Standard, said that Chen, through the Hong Kong-registered Asia Corporation, acquired a 50 percent stake in Habanos, the worldwide distributor of Cuban cigars, and subsequently leveraged this control to inflate market prices.

Chen Zhi, a Chinese-born businessman sanctioned by the United States and Britain over alleged human trafficking ties to a Cambodian cybercrime network, has reportedly been reported as a key figure behind a dramatic surge in global Cuban cigar prices.

The report, from East Week magazine, a sister publication of The Standard, said that Chen, through the Hong Kong-registered Asia Corporation, acquired a 50 percent stake in Habanos, the worldwide distributor of Cuban cigars, and subsequently leveraged this control to inflate market prices.

Following the acquisition, a box of Cuban cigars that originally retailed for HK$4,000-5,000 now sells for approximately HK$18,000, according to an industry source. 

The source attributed the increase to Chen's position as global exclusive agent, noting his strategy of releasing special editions and holding annual auctions has driven prices for some products as high as HK$500,000 – a tenfold increase.

Chen, founder of the Cambodian conglomerate Prince Group and a former adviser to ex-Prime Minister Hun Sen, reportedly generated profits exceeding 220 million euros (HK$1.98 billion) from the cigar business, the magazine said.

The stake was purchased in 2021, when UK-based Imperial Brands sold its 50 percent share in Habanos for US$1.4 billion (HK$10.92 billion) to a consortium of investors. Chen was identified as one of the members of that buying group. 

The U.S. and UK governments have sanctioned Chen for his alleged leadership of a cyber-scam operation in Cambodia that engaged in human trafficking and fraud.

 

[MrBirdman]

The only part of this story I’m willing to accept at face value - that the current owners were a driving force behind the price hikes - is old news at this point. 

No way to know if he has managed to get $250M in actual cash from Habanos, which would be impressive given their ability to play games with the books (unless the reported profit includes proceeds from “back-door boxes”).

Given his reputation I wouldn’t be surprised if the idea for Tabacuba to use prisoners came from his group too. Total scumbag.

[LizardGizmo]

8 hours ago, MrBirdman said:

The only part of this story I’m willing to accept at face value - that the current owners were a driving force behind the price hikes - is old news at this point. 

No way to know if he has managed to get $250M in actual cash from Habanos, which would be impressive given their ability to play games with the books (unless the reported profit includes proceeds from “back-door boxes”).

Given his reputation I wouldn’t be surprised if the idea for Tabacuba to use prisoners came from his group too. Total scumbag.

I’m assuming, based on the way he has structured his empire, that Habanos is just another way for this guy to clean some money. Zhi was allegedly buying up a lot of the vintage Cuban stock himself prior to buying Habanos. Wouldn’t be surprised if he somewhat artificially pumped up the prices of fresh cigars in the secondary market to then raise the Habanos prices globally 3x-5x+ to meet it. Lot more money can be washed in a $1B business than can be washed in a $200M business.

I feel the same on the prison cigars - he probably told his Cuban govt friends how lucrative it is to have free labor that can’t leave. The physical abuse in Cuba that was reported by the NGO is nearly identical to the reports of the Cambodian abuse.

[MrBirdman]

16 hours ago, LizardGizmo said:

I’m assuming based on the way he has structured his empire that Habanos is just another way for this guy to clean some money.

It’s possible, though the price hike made business sense given Cuba’s production limitations. Also, Habanos publicly announcing their revenue limits the laundering upside.

I think it may simply be that Zhi saw a high demand product made in an easily corruptible country (which seem to be his preferred places of business.) Based on what I’ve heard (and I’m sure you have too), they’ve also maximized the value of their access by diverting large quantities of cigars (presumably premiums) from the supply chain. This not only helps support higher prices but cuts out middlemen - a move Habanos is taking more officially with their new push to own distributors. Coincidence? Probably not. 

The level of greed seen among so many of today’s top business elites - legitimate and illegal - is really staggering. 

[barrygoodvibes]

Reportedly reported in the report. 

[Allroz]

7 hours ago, barrygoodvibes said:

Reportedly reported in the report. 

60% of the time it works 100% of the time.

[ElLoboLoco]

Hard to say, 6 / 7

🤣

[qs210]

Straight to jail.

[BrightonCorgi]

So I take it that Chen Zhi won't be visiting the Las Vegas for the F1 Grand Prix?

[MrFolgers]

Bingo. This sounds exactly who Frank Baroudi is talking about in this interview from two years ago (time stamped @ 25:20):

[LizardGizmo]

12 hours ago, MrFolgers said:

Bingo. This sounds exactly who Frank Baroudi is talking about in this interview from two years ago (time stamped @ 25:20):

That’s the video I was trying to find! Thanks

[JohnS]

That video was posted on a thread here, on our forum. At the time, members remarked Baroudi's claims seemed far-fetched (and who could blame us?). Not now.

[ThePolskiOgorki]

Could his face be at the bottom of the next FOH ashtray?

[madandana]

So we have him to thank. Seems like a stand up guy.

[Namisgr11]

Zhi now appears to be on the run, attempting to escape from US authorities in connection with the massive crypto scam he allegedly built and ran.

https://www.yahoo.com/news/articles/mysterious-owner-scam-empire-accused-222752732.html

[ha_banos]

Quote

"I think it's the sheer scale of his operations which really makes Chen Zhi stand out," he says, adding that it is shocking the Prince Group was able to build a "global footprint" without raising alarm bells given the serious criminal charges it now faces."

"What should be uncomfortable for a lot of people is that Chen Zhi should never have been able to acquire all these assets, in Singapore, London or the US. Lawyers, accountants, real estate agents, bankers, all should have been looking at this group and saying, hang on, this doesn't add up. And they didn't."

 

I expect this lackadaisical thing happens a lot more than people expect even today. 

[MrBirdman]

1 hour ago, Namisgr11 said:

Zhi now appears to be on the run, attempting to escape from US authorities in connection with the massive crypto scam he allegedly built and ran.

https://www.yahoo.com/news/articles/mysterious-owner-scam-empire-accused-222752732.html

Yeah I saw that. He might be even more worried about extradition to China. It’s unclear what charges may be pending there given the opacity of their judicial system, but I believe his scams were global in reach.

[qs210]

On 10/24/2025 at 10:55 PM, Namisgr11 said:

Zhi now appears to be on the run, attempting to escape from US authorities in connection with the massive crypto scam he allegedly built and ran.

Hopefully he is arrested in short order. Sounds like a true scumbag.

[eg133]

The sad part is now that Habanos got a taste of higher prices and revenue, I doubt they’ll revert closer to regular prices.


Sent from my iPhone using Tapatalk

[SUP8333]

On 10/25/2025 at 12:42 AM, MrBirdman said:

Yeah I saw that. He might be even more worried about extradition to China. It’s unclear what charges may be pending there given the opacity of their judicial system, but I believe his scams were global in reach.

10/10 they will hang him.

[qs210]

4 minutes ago, SUP8333 said:

10/10 they will hang him

100%

[yuppie]

I don't think you can remove this one figure and have the world return back to normal. I'd love to see prices come down but it's just hard to imagine the industry will allow that to happen.

[Coloniales]

Let's hope there is more flexibility in pricing going forward, and less Far East special releases that are irrelevant to most here. The least is no more price increases for many years. Any more increases and I am smoking my stash only, with some Non-Cubans in the mix. 

[helix]

Anyone really surprised that Cambodia and Cuba went all in and facilitated Chen Zhi 's criminal enterprises? Run by scum.

[Hoosh]

2 hours ago, helix said:

Anyone really surprised that Cambodia and Cuba went all in and facilitated Chen Zhi 's criminal enterprises? Run by scum.

Why would anyone now be surprised? I mean, cigar rolling in prison is apparently now a state sanctioned thing. It all falls in line.