Who Are Chen Zhi and the So-Called Crime Network, Accused by the US and UK of Large-Scale Scam Operations?
The UK and United States have imposed sanctions on a multinational network based in south-east Asia, allegedly orchestrating large-scale online scam operations that are believed to using trafficked workers to defraud individuals globally.
This industry has flourished in the past few years, especially in parts of Myanmar and Cambodia where countless individuals have been deceived by false job adverts and then forced to commit internet scams, such as fake relationship schemes, sometimes under the threat of physical harm.
The United States Treasury stated it had implemented what it called the most significant measure to date in south-east Asia, targeting 146 people associated with the so-called organization, which the UK also sanctioned.
Those targeted comprise the head of the alleged network, Chen Zhi, as well as numerous persons linked with his business operations throughout south-east Asia and the Pacific.
What is the Prince Group and Who is Chen Zhi?
According to official statements, the individual in question, thirty-eight, also known as “Vincent”, is the leader and establisher of Prince Holding Group (Prince Group), a global corporate entity based 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 Chen, who remains at large, had been indicted for wire fraud conspiracy and conspiracy to launder money for overseeing Prince Group’s operation of fraud centers using coerced labor across the country.
His swift rise to riches has gained him substantial clout, comprising reported advisory roles to Cambodia’s prime minister. Chen, a native of China from 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a Cambodian national.
Why have the Group Been Penalized?
The Department of Justice claimed individuals had been held against their will in the fraudulent operation centers linked with the syndicate and forced to engage in a range of deceptive practices that stole massive sums from targets in the United States and globally.
As part of the investigation into the leader, the US and UK have confiscated $15 billion (£11.3 billion) in cryptocurrency and frozen properties in London.
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 heart of the City of London’s financial district, and several flats in downtown London.
“Now the FBI and allies executed one of the biggest crackdowns on fraud in recorded time,” said the bureau's head Kash Patel in a announcement about the measures.
Other Parties Are Implicated?
According to the US assistant attorney general, Chen was the alleged “chief architect behind a sprawling digital scam network operating under the group's banner”. He was added to a US sanctions list this October alongside 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 added to a sanctions list because of alleged links to Chen.
What will the Measures Achieve?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would cooperate with foreign nations in the case against the individual.
“We do not shielding persons that violate the law,” the official said. “But it does not mean that we are accusing the group or its leader of committing crimes like the allegations issued by the United States or UK.”
Despite the historic set of penalties, experts say the scam industry is still enormous, with the UN calculating in recent years that about 100,000 people were being forced to carry out internet fraud in the nation, 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 industry in several Southeast Asian nations, some fear any arrests will leave a vacuum for other transnational groups to take over.
