An individual accused of massive fraud, human trafficking, and laundering billions of dollars managed to covertly control half of the Cuban tobacco empire on a global scale. Astonishingly, this remained undetected for years.
New insights from the specialized outlet PANews have brought to light the intricate web that allowed Chinese businessman Chen Zhi, wanted by both the United States and the United Kingdom, to penetrate the Cuban tobacco industry, ultimately becoming an indirect owner of 50% of Habanos S.A., the company responsible for the worldwide distribution of Cuba's most iconic cigars.
Chen Zhi achieved this through a network of shell companies, cryptocurrencies, and offshore structures described today as "spider-web capitalism 2.0." This transnational model intertwines blockchain technology, tax havens, and human exploitation networks.
While Chen Zhi cultivated an image as a young tycoon in Southeast Asia, his conglomerate Prince Group operated cyber scam networks and gated complexes where thousands of individuals were trafficked, confined, and forced into digital fraud activities.
U.S. authorities estimate that the group amassed billions of dollars through illegal casinos, cryptocurrency operations, and clandestine payment platforms such as HuionePay, which has been identified by FinCEN as one of the largest global money laundering hubs.
This influx of illicit funds eventually intertwined with one of Cuba's commercial jewels: Habanos S.A.
The Rise of Prices in the Asian Cigar Market
PANews' investigation reveals that in 2020, Chen Zhi secured a crucial stake in Allied Cigar Corporation, the firm that controls 50% of Habanos. This was accomplished through companies registered in Hong Kong, the Cayman Islands, and the British Virgin Islands, shifting shares from one name to another to erase visible ownership traces.
However, documents obtained by Swedish authorities and disclosed by specialized outlets pieced together the puzzle: behind Asia Uni Corporation, Instant Alliance, and other obscure entities, Chen Zhi was the constant presence.
The first public indicator emerged in 2021 when Cuban cigar prices in Asia skyrocketed. Previously priced between 4,000 and 5,000 Hong Kong dollars, boxes reached as high as 18,000. Special editions were auctioned for half a million.
Industry sources informed The Standard that the strategy employed in Asia was straightforward: exclusivity, scarcity, and control over sales flow. Under Chen's influence over part of the distribution chain, premium cigars became almost speculative items.
The Human Cost Behind the Luxury
Behind the luxury of a Cohiba Limited Edition smoked in a private lounge in Shanghai lie vastly different stories involving trafficked people, deceived migrants, and workers coerced into labor within fenced compounds in Cambodia, Myanmar, or Laos, according to reports from the U.S. and the U.K.
PANews emphasizes that the wealth used to acquire assets in Hong Kong, fund payment platforms, purchase artwork, or invest in Cuban tobacco originates from this exploitative system, leaving victims across Asia.
The criminal network allowed illicit funds from illegal casinos and Bitcoin mining farms to be consolidated into entirely legitimate businesses like the Cuban cigar industry.
Cuba's Silence and the Uncomfortable Question
Neither Habanos S.A. nor Cubatabaco has publicly commented on Chen Zhi since U.S. authorities sanctioned and formally accused him. The Cuban government has also not addressed how a fugitive entrepreneur 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 leading market for Cuban cigars, surpassing Europe. For years, part of this market was influenced by a man wanted for orchestrating one of Southeast Asia's most extensive criminal networks.
The United States and the United Kingdom have frozen assets, closed accounts, sanctioned dozens of individuals, and dismantled parts of Chen Zhi's financial network. Yet, the head of the Prince Group remains at large, with his holding continuing operations in Cambodia without apparent repercussions against its leadership.
What is already evident is that the Cuban cigar, a symbol of luxury, tradition, and national pride, has become entangled in a global criminal web mixing illicit wealth, human exploitation, and shadowy operations affecting the tobacco business in Asia.
FAQs on Cuban Tobacco and Criminal Networks
How did Chen Zhi manage to control part of the Cuban tobacco industry?
Chen Zhi infiltrated the Cuban tobacco industry through a network of shell companies, cryptocurrencies, and offshore structures, acquiring a significant stake in Allied Cigar Corporation, which controls 50% of Habanos S.A.
What impact did Chen Zhi's involvement have on the Asian cigar market?
Chen Zhi's control led to a significant increase in Cuban cigar prices in Asia, with some boxes reaching up to 18,000 Hong Kong dollars, and special editions being auctioned for half a million, making cigars almost speculative items.
What are the human costs associated with this criminal network?
The network involved trafficked individuals, deceived migrants, and coerced labor in fenced compounds across Southeast Asia, highlighting the human exploitation behind the luxury of Cuban cigars.