A Chinese businessman, sanctioned by both the United States and the United Kingdom for his alleged involvement in a cyber fraud and human trafficking network across Southeast Asia, is reportedly behind the dramatic rise in Cuban cigar prices in Asian markets, according to a report from Hong Kong-based media outlet, The Standard. The publication outlines how Chen Zhi, aged 38, secured a 50% stake in Habanos S.A.—the global distributor of Cuban cigars—through his firm, Asia Corporation, registered in Hong Kong.
This acquisition occurred in 2021 when British company Imperial Brands sold its share for $1.4 billion to a consortium of investors, with Chen emerging as a key player in the deal. Post-acquisition, cigar prices in Asia soared. Sources in the industry cited by The Standard reveal that a box of cigars previously priced between 4,000 and 5,000 Hong Kong dollars now fetches around 18,000. Certain special editions have even reached up to 500,000 Hong Kong dollars at private auctions.
The Scandalous Empire
Beneath this apparent commercial triumph lies an international web of corruption, fraud, and human trafficking. According to The Guardian, Chen Zhi—also known as "Vincent"—is the founder and chairman of the Prince Group, a conglomerate based in Cambodia that formally operates in real estate, finance, and consumer services. However, both the U.S. and U.K. Treasury departments accuse him of orchestrating a large-scale cyber scam network, exploiting trafficked individuals to conduct online fraud from secured compounds in Cambodia and other Southeast Asian countries.
The American authorities have described this as "one of the largest financial fraud operations in history," having sanctioned over 146 individuals and confiscated $15 billion in cryptocurrencies linked to the group's activities. Chen is currently at large and faces up to 40 years in prison if convicted on charges of conspiracy to commit wire fraud and money laundering.
Connection to Habanos S.A.
A report by the tobacco sector magazine, L’Amateur de Cigare, confirms that Chen Zhi is a major shareholder in Allied Cigar Corporation S.L.U., the Spanish entity that holds a 50% stake in Habanos S.A. The remaining 50% is owned by the Cuban state through Cubatabaco. This revelation came to light following an administrative review in Sweden, which required Habanos Nordic AB—the official distributor in northern Europe—to disclose its ownership documents. These documents unveiled a complicated network of offshore companies leading back to Chen Zhi, with entities registered in the British Virgin Islands, the Cayman Islands, and Hong Kong.
According to the report, Chen holds a majority stake in Simply Advance Ltd., a company that controls various entities culminating in Allied Cigar Corporation S.L.U., thereby linking him to Habanos S.A.
Impact on the Cuban Tobacco Market
This discovery casts a spotlight on Habanos S.A., one of Cuba's commercial gems, and its association with a businessman accused of serious international crimes. It also sheds light on the sudden hike in Cuban cigar prices in Asia, where Chen is believed to have implemented an exclusivity and auction strategy that significantly boosted profit margins. Meanwhile, Chen Zhi's whereabouts remain unknown as U.S. and U.K. authorities continue their pursuit of the magnate, whose name is now among the most controversial in the premium cigar industry and Cuba's most iconic commercial symbol: the habano.
Frequently Asked Questions About Chen Zhi and Cuban Cigars
Who is Chen Zhi and what is his connection to Habanos S.A.?
Chen Zhi is a Chinese businessman involved in a consortium that acquired a 50% stake in Habanos S.A., the global distributor of Cuban cigars. He is also wanted by the FBI for alleged involvement in cyber fraud and human trafficking.
How did the acquisition affect Cuban cigar prices in Asia?
Following Chen Zhi's consortium's acquisition of Habanos S.A., cigar prices in Asia skyrocketed, with some boxes increasing from 4,000-5,000 Hong Kong dollars to approximately 18,000, and special editions reaching up to 500,000 Hong Kong dollars at auctions.
What legal actions are being taken against Chen Zhi?
Chen Zhi is pursued by U.S. and U.K. authorities for conspiracy to commit wire fraud and money laundering. He could face up to 40 years in prison if convicted.