What Are Chen Zhi and the So-Called Crime Network, Targeted by the United States and United Kingdom of Large-Scale Fraudulent Schemes?
The UK and United States have enforced measures on a multinational network based in Southeast Asia, accused of orchestrating extensive online scam operations that are believed to exploiting trafficked workers to swindle people around the world.
This criminal enterprise has flourished in the past few years, especially in certain areas in Myanmar and Cambodia where countless individuals have been deceived by fraudulent employment offers and then forced to commit internet scams, such as 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, focusing on 146 people associated with the so-called organization, which the UK also penalized.
Those sanctioned comprise the head of the Prince group, Chen Zhi, as well as more than a dozen individuals connected to his business operations across Southeast Asia and Pacific regions.
What is the Alleged Syndicate and Who is Chen Zhi?
Based on official statements, Chen Zhi, 38, also known as “the alias”, is the leader and establisher of the so-called conglomerate (the group), a global corporate entity headquartered in the Southeast Asian nation which, as per its online presence, is focused on “property investment, financial services and consumer services”.
On October 14, American officials stated that the accused, who is still evading capture, had been charged with conspiracy to commit fraud and conspiracy to launder money for overseeing Prince Group’s operation of forced labour scam compounds throughout the country.
His swift rise to riches has won him substantial clout, including alleged consulting positions to Cambodia’s prime minister. The individual, a native of China from 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have They Been Penalized?
The US justice department claimed people had been forcibly detained in the fraudulent operation centers linked with the syndicate and forced to participate in a range of deceptive practices that stole massive sums from victims in the US and globally.
As part of the investigation into Chen, the US and UK have confiscated $15 billion (£11.3bn) in bitcoin and frozen properties in London.
The seized assets are believed to comprise a £12 million residence on a prestigious street, one of the costliest locations in London, a £95 million commercial building on Fenchurch Street in the heart of the City of London’s financial district, and multiple apartments in downtown London.
“Today the FBI and allies carried out one of the biggest crackdowns on fraud in history,” said FBI director Kash Patel in a statement about the actions.
Other Parties Are Implicated?
Based on the senior justice official, the accused was the supposed “mastermind behind a vast cyber-fraud empire operating under the Prince Group umbrella”. He was added to a American blacklist this October alongside more than a dozen additional persons believed to be participating in his commercial network.
Over a hundred corporate bodies – registered in Cambodia, Singapore, Hong Kong and Taiwan and more – were also added to a blacklist because of alleged links to the leader.
What will the Sanctions Do?
A representative from Cambodia's government told media outlets that the authorities would work together with other countries in the legal proceeding against the individual.
“We are not protecting individuals that break regulations,” the official said. “However, this does not imply that we are accusing the group or its leader 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 calculating in recent years that about 100,000 people were being compelled to execute online scams in Cambodia, as well as at least one hundred twenty thousand 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 leave a vacuum for other transnational groups to take over.
