Who Are Chen Zhi and the So-Called Crime Network, Targeted by the United States and United Kingdom of Massive Fraudulent Schemes?
The UK and United States have enforced measures on a global syndicate based in south-east Asia, accused of running extensive internet fraud schemes that are believed to using victims of human trafficking to defraud individuals around the world.
This industry has flourished in recent years, particularly in parts of Myanmar and Cambodia where hundreds of thousands have been deceived by false job adverts and then coerced to carry out online fraud, such as romance scams, sometimes under the menace of torture.
The United States Treasury stated it had implemented what it described as the largest action ever in Southeast Asia, targeting over a hundred individuals connected to the Prince Group, which the United Kingdom also sanctioned.
Those targeted comprise the leader of the alleged network, Chen Zhi, as well as more than a dozen persons connected to his business operations across south-east Asia and the Pacific.
What is the Alleged Syndicate and the Identity of Chen Zhi?
According to authoritative sources, the individual in question, thirty-eight, also referred to as “the alias”, is the leader and establisher of the so-called conglomerate (Prince Group), a multinational business conglomerate headquartered in Cambodia which, according to its website, is centered around “real estate development, banking operations and consumer services”.
On October 14, American officials stated that the accused, who remains at large, had been charged with conspiracy to commit fraud and conspiracy to launder money for overseeing the group's activities of forced labour scam compounds across Cambodia.
His swift rise to riches has won him substantial clout, including reported advisory roles to Cambodia’s prime minister. The individual, born in China in 1987, is thought to have bought citizenship in Cyprus and Vanuatu, and is also a Cambodian national.
Reasons Behind They Been Sanctioned?
The US justice department claimed people had been held against their will in the scam compounds connected to the group and forced to participate in a range of fraudulent schemes 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 (£11.3bn) in cryptocurrency and blocked London assets.
The frozen properties are believed to comprise a £12 million residence on a prestigious street, one of London’s most expensive addresses, a £95 million office block on a key financial avenue in the center of the City of London’s financial district, and several flats in downtown London.
“Today the Federal Bureau of Investigation and partners executed one of the biggest crackdowns on fraud in recorded time,” said FBI director Kash Patel in a announcement about the actions.
Other Parties Is Involved?
According to the senior justice official, Chen was the alleged “mastermind behind a sprawling cyber-fraud empire functioning under the group's banner”. He was placed on a US sanctions list this October together with over a dozen other individuals suspected of being involved in his commercial network.
More than 100 business entities – based in Cambodia, Singapore, Hong Kong and Taiwan among others – 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 news agencies that the authorities would work together with foreign nations in the case against the individual.
“We do not protecting individuals that violate the law,” he said. “However, this does not imply that we are accusing Prince Group or Chen Zhi of committing crimes similar to the allegations issued by the US or the UK.”
Despite the unprecedented tranche of sanctions, analysts say the scam industry 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 Myanmar and tens of thousands in other Southeast Asian states.
Considering the widespread nature of the enterprise in several Southeast Asian nations, some fear any apprehensions will create a gap for other transnational groups to take over.
