A Chinese businessman sanctioned by the United States and the United Kingdom for his alleged involvement in a cyber fraud and human trafficking network in Southeast Asia is believed to have been behind the dramatic rise in the price of cigars in Asian markets, according to a report by The Standard, a Hong Kong-based outlet.

According to the publication, Chen Zhi, 38, acquired 50% of the shares of Habanos S.A., the company responsible for the global distribution of Cuban cigars, through the Hong Kong-registered company Asia Corporation.

The transaction was finalized in 2021, when the British company Imperial Brands sold its stake for $1.4 billion to a consortium of investors in which Chen was reportedly a key figure.

Since that purchase, cigar prices have skyrocketed in Asia. A box that previously cost between HK$4,000 and HK$5,000 now sells for around HK$18,000, according to industry sources cited by The Standard. Some special editions fetched up to HK$500,000 at private auctions.

Behind the apparent commercial success lies an international network of corruption, fraud, and human trafficking. According to The Guardian, Chen Zhi—also known as "Vincent"—is the founder and chairman of the Cambodia-based Prince Group conglomerate, formally involved in the real estate, financial, and consumer services sectors. https://x.com/NewYorkFBI/status/1978476391931785401

However, the US and UK Treasury Departments accuse him of running a large-scale cyber-fraud ring that used trafficked people forced to commit online fraud from gated communities in Cambodia and other Southeast Asian countries.

U.S. authorities called the case "one of the largest financial fraud operations in history," with more than 146 people sanctioned and the seizure of $15 billion in cryptocurrency linked to the group's activities. https://x.com/ChinaInFocusNTD/status/1980635679613940217 Chen is a fugitive and could face up to 40 years in prison if convicted of conspiracy to commit wire fraud and money laundering.

An investigation published by L'Amateur de Cigare, a magazine specializing in the tobacco sector, confirms that Chen Zhi is one of the main shareholders of Allied Cigar Corporation S.L.U., the Spanish company that controls 50% of Habanos S.A. The other 50% belongs to the Cuban state through Cubatabaco.

The discovery emerged after an administrative review in Sweden that forced Habanos Nordic AB—the official distributor in Northern Europe—to submit documentation on its owners. The documents revealed a complex network of offshore companies leading to Chen Zhi, through structures registered in the British Virgin Islands, the Cayman Islands, and Hong Kong.

According to the report, the businessman owns the majority of the shares in Simply Advance Ltd., a company that controls other entities up to Allied Cigar Corporation S.L.U., thus completing the link with Habanos S.A.

The revelation puts a spotlight on the relationship between Habanos S.A., one of the commercial jewels of the Cuban economy, and a businessman accused of serious international crimes. It also explains the sudden increase in the price of Cuban cigars in Asia, where Chen allegedly implemented a strategy of exclusivity and auctions that boosted profit margins.

Meanwhile, Chen Zhi's whereabouts remain unknown. Authorities in the United States and the United Kingdom continue their pursuit of the magnate, while his name is already among the most controversial in the world of premium tobacco and, now, in Cuba's most recognized commercial symbol: the habano.