Who Is Chen Zhi and the So-Called Crime Network, Accused by the United States and United Kingdom of Massive Scam Operations?
The UK and United States have enforced measures on a global syndicate based in Southeast Asia, accused of orchestrating large-scale internet fraud schemes that are suspected of exploiting trafficked workers to swindle people globally.
This industry has expanded in recent years, especially in certain areas in Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then coerced to commit internet scams, such as romance scams, sometimes under the menace of torture.
The US treasury department stated it had taken what it described as the most significant measure to date in south-east Asia, focusing on 146 people connected to the so-called organization, which the United Kingdom also sanctioned.
Those sanctioned include the leader of the alleged network, Chen Zhi, as well as more than a dozen individuals linked with his commercial activities throughout Southeast Asia and Pacific regions.
Understanding the Prince Group and Who is Chen Zhi?
According to official statements, Chen Zhi, thirty-eight, also known as “the alias”, is the leader and establisher of the so-called conglomerate (Prince Group), a multinational business conglomerate headquartered in the Southeast Asian nation which, as per its online presence, is focused on “property investment, financial services and retail offerings”.
On 14 October, US authorities stated that the accused, who is still evading capture, had been charged with wire fraud conspiracy and money laundering conspiracy for directing Prince Group’s operation of fraud centers using coerced labor throughout Cambodia.
Chen’s rapid ascent to wealth has won him substantial clout, comprising reported advisory roles to the nation's leader. The individual, born in China in 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a Cambodian national.
Why have They Been Sanctioned?
The US justice department alleged people had been forcibly detained in the scam compounds connected to the group and made to participate in a range of deceptive practices that stole massive sums from victims in the US and globally.
As part of the probe into Chen, the US and UK have confiscated $15bn (£11.3 billion) in bitcoin and blocked London assets.
The frozen properties are believed to comprise a £12m residence on Avenue Road, one of London’s most expensive addresses, a £95m office block on a key financial avenue in the center of the City of London’s financial district, and multiple apartments in central London.
“Today the Federal Bureau of Investigation and partners carried out one of the largest financial fraud takedowns in recorded time,” said the bureau's head Kash Patel in a announcement about the actions.
Other Parties Is Involved?
Based on the US assistant attorney general, the accused was the alleged “mastermind behind a sprawling digital scam network functioning under the Prince Group umbrella”. He was placed on a US sanctions list this month together with more than a dozen other individuals suspected of being participating in his commercial network.
Over a hundred business entities – based in multiple Asian jurisdictions among others – were also placed on a sanctions list because of suspected connections to the leader.
Impact of the Sanctions Do?
A representative from Cambodia's government told news agencies that the authorities would cooperate with foreign nations in the case against the individual.
“We do not protecting persons that break regulations,” the official said. “However, this does not imply that we are accusing Prince Group or Chen Zhi of engaging in illegal acts similar to the allegations issued by the US or the UK.”
Despite the historic set of penalties, experts say the scam industry is still enormous, with the United Nations estimating in 2023 that about 100,000 people were being compelled to carry out online scams in the nation, as well as at least 120,000 in the neighboring country and many thousands in other Southeast Asian states.
Given the widespread nature of the industry in multiple south-east Asian countries, some worry any arrests will leave a vacuum for other transnational groups to take over.