What Is Chen Zhi and the So-Called Crime Network, Targeted by the US and UK of Large-Scale Scam Operations?
The United Kingdom and US have imposed sanctions on a global syndicate based in south-east Asia, allegedly running large-scale online scam operations that are suspected of using victims of human trafficking to defraud individuals globally.
This industry has expanded in the past few years, particularly in certain areas in Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then coerced to carry out internet scams, such as romance scams, sometimes under the threat of physical harm.
The United States Treasury stated it had implemented what it called the largest action ever in Southeast Asia, targeting over a hundred individuals connected to the Prince Group, which the United Kingdom also penalized.
Those targeted comprise the head of the alleged network, the accused figure, as well as more than a dozen individuals connected to his commercial activities throughout Southeast Asia and Pacific regions.
Understanding the Alleged Syndicate and Who is Chen Zhi?
Based on authoritative sources, Chen Zhi, thirty-eight, also known as “the alias”, is the founder and chairman of Prince Holding Group (Prince Group), a global corporate entity based in Cambodia which, according to its website, is centered around “property investment, banking operations and retail offerings”.
On October 14, US authorities stated that Chen, who is still evading capture, had been charged with wire fraud conspiracy and money laundering conspiracy for overseeing the group's activities of fraud centers using coerced labor throughout the country.
His swift rise to riches has gained him significant political influence, comprising alleged consulting positions to the nation's leader. Chen, born in China in 1987, is thought to have acquired nationality in Cyprus and Vanuatu, and is also a Cambodian national.
Why have the Group Been Penalized?
The Department of Justice claimed people had been held against their will in the fraudulent operation centers connected to the syndicate and made to participate in a range of deceptive practices that stole massive sums from targets in the United States and worldwide.
As part of the investigation into Chen, the United States and UK have confiscated $15bn (£11.3 billion) in cryptocurrency and frozen properties in London.
The seized assets are thought to include a £12 million mansion on a prestigious street, one of London’s most expensive addresses, a £95m commercial building on a key financial avenue in the center of the London's banking area, and several flats in downtown London.
“Today the FBI and allies carried out one of the largest financial fraud takedowns in recorded time,” said FBI director the official in a statement about the actions.
Who else Is Involved?
According to the senior justice official, Chen was the alleged “chief architect behind a sprawling cyber-fraud empire operating under the group's banner”. He was added to a US sanctions list this month together with over a dozen other individuals suspected of being participating in his business empire.
Over a hundred corporate bodies – registered in multiple Asian jurisdictions and more – were also added to a sanctions list because of suspected connections to the leader.
What will the Measures Do?
A representative from Cambodia's government told news agencies that the authorities would work together with foreign nations in the case against Chen.
“We are not shielding individuals that violate the law,” he said. “But it does not mean that we are accusing Prince Group or Chen Zhi of engaging in illegal acts like the claims made by the US or the UK.”
In spite of the unprecedented tranche of sanctions, analysts say the fraud sector is still enormous, with the UN estimating in 2023 that about a hundred thousand individuals were being compelled to carry out online scams in the nation, as well as at least 120,000 in Myanmar and many thousands in Thailand, Laos and the Philippines.
Considering the prevalence of the industry in multiple Southeast Asian nations, some fear any apprehensions will create a gap for additional global syndicates to take over.
