What Are Chen Zhi and the So-Called Crime Network, Targeted by the US and UK of Large-Scale Scam Operations?
The United Kingdom and United States have enforced measures on a multinational network based in Southeast Asia, allegedly running large-scale online scam operations that are believed to using victims of human trafficking to defraud people globally.
This industry has flourished in recent years, especially in parts of Myanmar and Cambodia where hundreds of thousands have been deceived by false job adverts and then coerced to commit internet scams, including romance scams, often under the threat of physical harm.
The US treasury department stated it had taken what it described as the most significant measure to date in Southeast Asia, targeting 146 people associated with the Prince Group, which the UK also penalized.
Those targeted include the leader of the Prince group, Chen Zhi, as well as numerous individuals linked with his business operations across south-east Asia and the Pacific.
What is the Alleged Syndicate and Who is Chen Zhi?
Based on official statements, Chen Zhi, thirty-eight, also known as “the alias”, is the founder and chairman of Prince Holding Group (the group), a multinational business conglomerate headquartered in Cambodia which, as per its online presence, is centered around “property investment, banking operations and retail offerings”.
On October 14, American officials stated that Chen, who remains at large, had been indicted for conspiracy to commit fraud and conspiracy to launder money for directing the group's activities of fraud centers using coerced labor across Cambodia.
His swift rise to riches has gained him significant political influence, comprising reported advisory roles to the nation's leader. The individual, a native of China from 1987, is believed to have acquired nationality in Cyprus and Vanuatu, and is also a Cambodian national.
Why have They Been Penalized?
The US justice department alleged people had been held against their will in the fraudulent operation centers linked with the syndicate and forced to engage in a range of fraudulent schemes that stole billions of dollars from victims in the US and globally.
As part of the investigation into the leader, the US and UK have confiscated $15bn (£11.3bn) in cryptocurrency and frozen London assets.
The seized assets are believed to comprise a £12 million residence on Avenue Road, one of the costliest locations in London, a £95 million office block on Fenchurch Street in the center of the London's banking area, and multiple apartments in central London.
“Now the Federal Bureau of Investigation and partners executed one of the biggest crackdowns on fraud in recorded time,” said the bureau's head Kash Patel in a statement about the measures.
Who else Are Implicated?
According to the US assistant attorney general, Chen was the alleged “chief architect behind a sprawling cyber-fraud empire functioning under the group's banner”. He was added to a American blacklist this month alongside more than a dozen other individuals suspected of being involved in his commercial network.
Over a hundred corporate bodies – registered in Cambodia, Singapore, Hong Kong and Taiwan and more – were also placed on a sanctions list because of suspected connections to the leader.
What will the Sanctions Achieve?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would cooperate with other countries in the case against the individual.
“We do not protecting persons that break regulations,” he said. “However, this does not imply that we are accusing the group or its leader of committing crimes similar to the claims issued by the US or the UK.”
Despite the historic set of penalties, analysts say the fraud sector is still massive, with the UN estimating in 2023 that about a hundred thousand individuals were being compelled to execute online scams in Cambodia, as well as at least one hundred twenty thousand in the neighboring country and tens of thousands in other Southeast Asian states.
Considering the prevalence of the industry in multiple Southeast Asian nations, some worry any apprehensions will create a gap for other transnational groups to swoop in.
