What Is Chen Zhi and the So-Called Crime Network, Targeted by the United States and United Kingdom of Large-Scale Fraudulent Schemes?
The United Kingdom and United States have imposed sanctions on a global syndicate operating from Southeast Asia, accused of orchestrating large-scale online scam operations that are suspected of exploiting victims of human trafficking to swindle people globally.
This industry has flourished in recent years, particularly in certain areas in Myanmar and Cambodia where hundreds of thousands have been deceived by false job adverts and then forced to carry out online fraud, such as romance scams, often under the menace of torture.
The United States Treasury stated it had implemented what it described as the largest action ever in south-east Asia, focusing on 146 people associated with the so-called organization, which the UK also penalized.
Those sanctioned include the head of the Prince group, Chen Zhi, as well as more than a dozen individuals linked with his commercial activities across south-east Asia and the Pacific.
What is the Prince Group and Who is Chen Zhi?
Based on authoritative sources, the individual in question, 38, also referred to as “Vincent”, is the founder and chairman of the so-called conglomerate (the group), a multinational business conglomerate headquartered in the Southeast Asian nation which, according to its website, is centered around “property investment, financial services and consumer services”.
On October 14, US authorities stated that the accused, who remains at large, had been charged with wire fraud conspiracy and money laundering conspiracy for directing the group's activities of forced labour scam compounds across Cambodia.
His swift rise to riches has won him significant political influence, including reported advisory roles to the nation's leader. Chen, a native of China from 1987, is believed to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Reasons Behind the Group Been Penalized?
The US justice department claimed people had been forcibly detained in the fraudulent operation centers linked with the group and made to engage in a variety of deceptive practices that defrauded massive sums from victims in the US and globally.
As part of the probe into Chen, the US and UK have seized $15bn (£11.3 billion) in bitcoin and blocked London assets.
The frozen properties are thought to include a £12 million residence on a prestigious street, one of the costliest locations in London, a £95m commercial building on Fenchurch Street in the heart of the London's banking area, and several flats in downtown London.
“Today the FBI and partners carried out one of the biggest crackdowns on fraud in history,” said FBI director the official in a announcement about the measures.
Other Parties Is Involved?
Based on the US assistant attorney general, the accused was the supposed “chief architect behind a sprawling digital scam network operating under the group's banner”. He was placed on a US sanctions list this October alongside over a dozen other individuals suspected of being involved in his commercial network.
Over a hundred corporate bodies – based in Cambodia, Singapore, Hong Kong and Taiwan and more – were also placed on a sanctions list because of alleged links to Chen.
What will the Measures Do?
A representative from Cambodia's government told media outlets that the authorities would work together with foreign nations in the legal proceeding against Chen.
“We do not protecting individuals that break regulations,” the official said. “But it does not mean that we blame the group or its leader of engaging in illegal acts similar to the allegations issued by the US or the UK.”
Despite the unprecedented tranche of sanctions, analysts say the fraud sector is still massive, with the UN estimating in 2023 that about a hundred thousand individuals were being forced to execute online scams in the nation, as well as at least one hundred twenty thousand in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the enterprise in multiple south-east Asian countries, some worry any arrests will create a gap for other transnational groups to swoop in.
