What Is Chen Zhi and the So-Called Crime Network, Targeted by the US and UK of Massive Fraudulent Schemes?
The United Kingdom and US have enforced measures on a multinational network based in south-east Asia, allegedly running large-scale online scam operations that are believed to using victims of human trafficking to defraud individuals around the world.
This industry has flourished in the past few years, especially in certain areas in Myanmar and Cambodia where hundreds of thousands have been deceived by fraudulent employment offers and then forced to commit internet scams, such as romance scams, often under the menace of torture.
The United States Treasury stated it had taken what it called the most significant measure to date in south-east Asia, focusing on over a hundred individuals connected to the Prince Group, which the UK also penalized.
Those targeted include the head of the alleged network, the accused figure, as well as numerous individuals connected to his commercial activities across Southeast Asia and Pacific regions.
Understanding the Alleged Syndicate and the Identity of Chen Zhi?
Based on official statements, the individual in question, 38, also known as “the alias”, is the leader and establisher of Prince Holding Group (the group), a multinational business conglomerate headquartered in the Southeast Asian nation which, as per its online presence, is focused on “real estate development, banking operations and consumer services”.
On 14 October, American officials stated that the accused, who is still evading capture, had been indicted for conspiracy to commit fraud and money laundering conspiracy for overseeing the group's activities of fraud centers using coerced labor throughout Cambodia.
His swift rise to riches has gained him significant political influence, including alleged consulting positions to the nation's leader. Chen, a native of China from 1987, is believed to have acquired nationality in Cyprus and Vanuatu, and is also a Cambodian national.
Reasons Behind the Group Been Penalized?
The US justice department claimed individuals had been forcibly detained in the fraudulent operation centers linked with the syndicate and forced to engage in a variety of fraudulent schemes 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 (£11.3bn) in bitcoin 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 £95 million office block on Fenchurch Street in the heart of the City of London’s financial district, and several flats in downtown London.
“Today the FBI and partners executed one of the biggest crackdowns on fraud in recorded time,” said FBI director Kash Patel in a statement about the measures.
Who else Is Involved?
Based on the US assistant attorney general, Chen was the alleged “mastermind behind a vast cyber-fraud empire functioning under the group's banner”. He was placed on a US sanctions list this month together with over a dozen additional persons believed to be participating in his business empire.
Over a hundred corporate bodies – registered in multiple Asian jurisdictions among others – were also added to a blacklist because of alleged links to Chen.
What will the Sanctions Do?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would work together with foreign nations in the case against the individual.
“We do not protecting persons 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 similar to the claims issued by the US or the UK.”
Despite the unprecedented tranche of sanctions, experts say the fraud sector is still enormous, with the UN estimating in 2023 that about 100,000 people were being compelled to carry out internet fraud in the nation, as well as at least 120,000 in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Considering the widespread nature of the industry in several Southeast Asian nations, certain fear any apprehensions will leave a vacuum for other transnational groups to swoop in.
