Who Are Chen Zhi and the So-Called Crime Network, Accused by the US and UK of Massive Fraudulent Schemes?
The United Kingdom and United States have enforced measures on a multinational network based in Southeast Asia, allegedly orchestrating extensive online scam operations that are suspected of exploiting trafficked workers to swindle people globally.
This industry has expanded in recent years, particularly in parts of Cambodia and Myanmar where countless individuals have been duped by fraudulent employment offers and then coerced to carry out internet scams, including fake relationship schemes, often under the threat of torture.
The United States Treasury stated it had implemented what it called the most significant measure to date in Southeast Asia, focusing on 146 people associated with the Prince Group, which the United Kingdom also penalized.
Those sanctioned comprise the leader of the Prince group, Chen Zhi, as well as more than a dozen individuals linked with his business operations throughout south-east Asia and the Pacific.
What is the Prince Group and the Identity of Chen Zhi?
Based on authoritative sources, Chen Zhi, 38, also referred to as “the alias”, is the leader and establisher of Prince Holding Group (the group), a multinational business conglomerate based in Cambodia which, according to its website, is focused on “real estate development, financial services and retail offerings”.
On 14 October, American officials stated that the accused, who remains at large, had been indicted for conspiracy to commit fraud and conspiracy to launder money for directing Prince Group’s operation of forced labour scam compounds across the country.
Chen’s rapid ascent to wealth has gained him substantial clout, including alleged consulting positions to the nation's leader. The individual, a native of China from 1987, is believed to have bought citizenship in Cyprus and Vanuatu, and is also a Cambodian national.
Why have They Been Penalized?
The US justice department claimed people had been held against their will in the fraudulent operation centers connected to the group and forced to participate in a range of deceptive practices that defrauded billions of dollars from targets in the US and worldwide.
As part of the probe into the leader, the United States and UK have seized $15bn (£11.3bn) in cryptocurrency and blocked London assets.
The seized assets are thought to include a £12m residence on Avenue Road, one of London’s most expensive addresses, a £95m office block on Fenchurch Street in the center of the City of London’s financial district, and multiple apartments in central London.
“Today the Federal Bureau of Investigation and allies executed one of the largest financial fraud takedowns in recorded time,” said FBI director Kash Patel in a statement about the actions.
Who else Are Implicated?
Based on the senior justice official, the accused was the supposed “chief architect behind a vast digital scam network functioning under the Prince Group umbrella”. He was placed on a US sanctions list this month alongside more than a dozen additional persons 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 blacklist because of alleged links to Chen.
Impact of the Measures Achieve?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would cooperate with foreign nations in the case against Chen.
“We are not protecting individuals that violate the law,” the official said. “But it does not mean that we blame the group or its leader of engaging in illegal acts similar to the allegations made by the United States or UK.”
Despite the historic set of penalties, analysts say the fraud sector is still enormous, with the UN calculating in 2023 that about 100,000 people were being compelled to carry out internet fraud in Cambodia, as well as at least 120,000 in the neighboring country and many thousands in other Southeast Asian states.
Given the prevalence of the enterprise in multiple south-east Asian countries, certain fear any apprehensions will leave a vacuum for additional global syndicates to take over.
