Who Is Chen Zhi and the So-Called Crime Network, Targeted by the US and UK of Large-Scale Fraudulent Schemes?
The United Kingdom and United States have enforced measures on a global syndicate operating from south-east Asia, allegedly orchestrating large-scale internet fraud schemes that are suspected of using victims of human trafficking to swindle individuals around the world.
This criminal enterprise has flourished in the past few years, especially in certain areas in Cambodia and Myanmar where countless individuals have been deceived by false job adverts and then forced to carry out internet scams, such as fake relationship schemes, sometimes under the menace of physical harm.
The US treasury department stated it had taken what it called the most significant measure to date in Southeast Asia, focusing on 146 people connected to the Prince Group, which the UK also sanctioned.
Those targeted include the head of the alleged network, Chen Zhi, as well as numerous persons connected to his business operations throughout Southeast Asia and Pacific regions.
Understanding the Prince Group and Who is Chen Zhi?
According to authoritative sources, Chen Zhi, thirty-eight, also referred to as “the alias”, is the founder and chairman of Prince Holding Group (the group), a global corporate entity headquartered in Cambodia which, according to its website, is focused on “real estate development, financial services and retail offerings”.
On October 14, US authorities stated that the accused, who remains at large, had been indicted for conspiracy to commit fraud and conspiracy to launder money for overseeing Prince Group’s operation of forced labour scam compounds across the country.
Chen’s rapid ascent to wealth has won him significant political influence, comprising alleged consulting positions to Cambodia’s prime minister. Chen, born in China in 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a Cambodian national.
Reasons Behind They Been Sanctioned?
The US justice department claimed individuals had been held against their will in the scam compounds connected to the group and forced to engage in a variety of deceptive practices that defrauded massive sums from victims in the US and worldwide.
As part of the probe into Chen, the United States and UK have seized $15 billion (£11.3bn) in cryptocurrency and blocked properties in London.
The frozen properties are believed to comprise a £12 million mansion on Avenue Road, one of London’s most expensive addresses, a £95m office block on a key financial avenue in the center of the City of London’s financial district, and multiple apartments in downtown London.
“Now the FBI and partners carried out one of the biggest crackdowns on fraud in history,” said FBI director Kash Patel in a announcement about the actions.
Who else Are Implicated?
According to the US assistant attorney general, Chen was the supposed “mastermind behind a sprawling cyber-fraud empire operating under the group's banner”. He was added to a US sanctions list this month alongside over a dozen other individuals believed to be participating in his commercial network.
More than 100 business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a sanctions list because of alleged links to the leader.
What will the Measures Do?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would cooperate with other countries in the case against Chen.
“We are not protecting persons that break regulations,” the official said. “However, this does not imply that we blame the group or its leader of committing crimes like the claims issued 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 100,000 people were being forced to execute internet fraud in Cambodia, as well as at least one hundred twenty thousand in Myanmar and many thousands in Thailand, Laos and the Philippines.
Given the prevalence of the industry in multiple south-east Asian countries, certain worry any arrests will create a gap for additional global syndicates to swoop in.
