Chen Zhi, the Chinese-Cambodian businessman who came to indirectly control nearly 29% of Habanos S.A., the company that markets Cuban cigars worldwide, has been formally accused in China of a crime involving intentional injury committed by cruel means, a charge that, according to the legislation of the Asian country, can be punished with sentences ranging from ten years in prison to life imprisonment or even the death penalty.
According to the Chinese financial outlet Caixin, cited by the specialized publication halfwheel, the charges were filed on July 6, six months after Chen was arrested in Cambodia and handed over to Chinese authorities.
In addition to the main charge, the businessman is also facing an accusation of alleged copyright infringement.
His connection with Habanos S.A.
Chen Zhi's relationship with the Cuban tobacco industry came to light thanks to documents revealed by the Swedish cigar enthusiasts club Cigarrklubben CK Sverige AB, published on the blog Cigarrvärlden.
The investigation revealed that the businessman controlled, through a complex network of companies registered in Hong Kong, the Cayman Islands, and the British Virgin Islands, 57.1% of the main holding company linked to Habanos S.A., which amounted to an effective share of 28.55% in the company.
It was the largest private participation in Habanos S.A., second only to the 50% owned by the Cuban state.
Chen acquired that position in 2020 when he joined the group of investors that disbursed 1.4 billion dollars to buy Imperial Brands' artisanal cigar business.
The operation included the entirety of Tabacalera USA —parent company of Altadis USA and JR Cigar— as well as the 50% of Habanos S.A. that was held by the British multinational.
He is also accused in the United States
Chen Zhi's legal troubles are not limited to China.
In the fall of 2025, the Eastern District of New York's Attorney's Office brought an indictment against the businessman for allegedly leading a criminal organization involved in the so-called "pig butchering" scam, a sophisticated cryptocurrency fraud scheme that, according to U.S. authorities, generated up to 30 million dollars.
As part of that investigation, the Department of Justice confiscated 127,271 bitcoins linked to the businessman, valued at the time at around 14.7 billion dollars, in what was presented as the largest seizure of digital assets in the history of that institution.
Impact on the cigar business
Investigations against Chen Zhi had direct consequences for the tobacco industry.
After the accusation became public in the United States, the Office of Foreign Assets Control (OFAC) added hundreds of companies related to the businessman to its sanctions list.
The measure prevented Tabacalera USA from placing orders with the Tabacalera factories of García and Flor de Copán, in which Chen held stakes, for more than six months.
Shipments could only resume in May 2026, after the authorities in the United States and the United Kingdom granted special licenses to allow the operations.
Restructuring and possible exit from the group
In light of the businessman’s legal situation, Tabacalera SLU, the company that manages the private stake in Habanos S.A., initiated a process to remove him from its shareholding structure.
"The company is undergoing a restructuring process to exclude Mr. Chen Zhi from the group," a company spokesperson stated to the AFP agency in December 2025.
Meanwhile, the Eastern Caribbean Supreme Court is overseeing the liquidation of several companies owned by Chen registered in the British Virgin Islands and has appointed the firm Interpath as the administrator of the process.
The main party interested in acquiring those assets would be Renovaire Group, an investment fund based in Abu Dhabi that already owns 42.9% of Allied Cigar. However, the operation remains stalled due to legal proceedings that are simultaneously underway in the British Virgin Islands, New York, and Hong Kong.
So far, none of the investigations initiated against Chen Zhi have led to charges against Habanos S.A., Tabacalera SLU, or the Cuban government. Neither the Cuban authorities nor the company have made public statements regarding the case.
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