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A fugitive accused of massive fraud, human trafficking, and laundering billions of dollars managed to indirectly control half of the global Cuban tobacco empire. And for years, no one seemed to see it coming.
New revelations from the specialized medium PANews expose the dark structure that allowed Chinese businessman Chen Zhi, sought by the United States and the United Kingdom, to infiltrate the Cuban tobacco industry and become the indirect owner of 50% of Habanos S.A., the company that globally markets Cuba's most emblematic cigars.
He did it hidden behind layers of shell companies, cryptocurrencies, and offshore structures that are now described as a “web capitalism 2.0,” a transnational model that combines blockchain technology, tax havens, and networks of human exploitation.
While Chen Zhi cultivated his image as a young mogul of Southeast Asia, his conglomerate Prince Group operated networks of cyber scams and closed compounds where thousands of people were trafficked, imprisoned, and forced to work in digital frauds.
U.S. authorities estimate that the group generated billions of dollars through illegal casinos, cryptocurrency operations, and clandestine payment platforms like HuionePay, which has been identified by FinCEN as one of the largest global money laundering hubs.
That torrent of dirty money ended up mixing with one of Cuba's commercial jewels: Habanos S.A.
The investigation by PANews confirms that Chen Zhi acquired a key stake in Allied Cigar Corporation in 2020, the company that controls 50% of Habanos. He did this through companies registered in Hong Kong, the Cayman Islands, and the British Virgin Islands, moving shares from one name to another to erase visible traces of his ownership.
But documents obtained by Swedish authorities and revealed by specialized media reconstructed the puzzle: behind Asia Uni Corporation, Instant Alliance, and other opaque firms, Chen Zhi was always present.
Direct impact on the Asian cigar market
The first public sign came in 2021 when the price of Cuban cigars in Asia skyrocketed. A box that previously cost between 4,000 and 5,000 Hong Kong dollars soared to 18,000. Special editions were sold at auctions for half a million.
Sources in the sector told The Standard that the strategy implemented in Asia was straightforward: exclusivity, scarcity, and control over the sales flow. With Chen at the helm of part of the distribution chain, the premium cigar became an almost speculative product.
The part that hurts the most: the human cost
Behind the luxury of a Cohiba Edición Limitada smoked in a private lounge in Shanghai, there were very different stories involving trafficked individuals, deceived migrants, and workers forced to labor in enclosed complexes in Cambodia, Myanmar, or Laos, according to reports from the U.S. and the UK.
PANews reminds us that the wealth used to purchase assets in Hong Kong, finance payment platforms, acquire works of art, or invest in Cuban tobacco comes from a system of exploitation that has left victims throughout Asia.
The criminal network allowed money generated in illegal casinos and Bitcoin mining farms to end up consolidated in completely legal businesses, such as the Cuban cigar industry.
Cuba, the silence and the uncomfortable question
Neither Habanos S.A. nor Cubatabaco have made public statements regarding Chen Zhi since U.S. authorities sanctioned him and formally accused him. The Cuban government has also not responded to how a fugitive businessman ended up indirectly controlling half of the country's most significant tobacco business.
The case becomes even more unsettling considering that China is now the main market for Cuban cigars, surpassing Europe. For years, part of that market was influenced by a man hunted for leading one of the largest criminal networks in Southeast Asia.
The United States and the United Kingdom have frozen assets, closed accounts, sanctioned dozens of individuals, and dismantled part of Chen Zhi's financial network. However, the leader of the Prince Group remains at large, while his holding continues to operate in Cambodia without apparent measures against its leadership.
What is already clear is that the Cuban habano, a symbol of luxury, tradition, and national pride, has become entangled in a global criminal web that mixes illicit wealth, human exploitation, and shadowy operations that spill over into the tobacco business in Asia.
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