Who Are Chen Zhi and the So-Called Crime Network, Targeted by the US and UK of Massive Scam Operations?
The United Kingdom and US have imposed sanctions on a multinational network based in south-east Asia, accused of running large-scale internet fraud schemes that are suspected of using trafficked workers to defraud people around the world.
This industry has flourished in recent years, particularly in parts of Myanmar and Cambodia where hundreds of thousands have been duped by fraudulent employment offers and then forced to carry out internet scams, such as fake relationship schemes, sometimes under the threat of physical harm.
The United States Treasury stated it had taken what it called the most significant measure to date in Southeast Asia, focusing on over a hundred individuals connected to the Prince Group, which the United Kingdom also sanctioned.
Those targeted include the head of the alleged network, the accused figure, as well as more than a dozen individuals linked with his business operations throughout south-east Asia and the Pacific.
Understanding the Alleged Syndicate and the Identity of Chen Zhi?
Based on official statements, Chen Zhi, 38, 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, as per its online presence, is centered around “real estate development, banking operations and retail offerings”.
On 14 October, US authorities stated that Chen, who is still evading capture, had been indicted for wire fraud conspiracy and conspiracy to launder money for overseeing Prince Group’s operation of forced labour scam compounds throughout the country.
Chen’s rapid ascent to wealth has gained him substantial clout, including reported advisory roles to Cambodia’s prime minister. Chen, born in China in 1987, is thought to have bought citizenship in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Reasons Behind They Been Penalized?
The US justice department claimed people had been forcibly detained in the scam compounds linked with the syndicate and forced to engage in a variety of fraudulent schemes that stole massive sums from victims in the United States and globally.
As part of the investigation into the leader, the United States and UK have confiscated $15bn (£11.3 billion) in bitcoin and frozen properties in London.
The frozen properties are thought to include a £12m residence on a prestigious street, one of London’s most expensive addresses, a £95 million commercial building on a key financial avenue in the heart of the City of London’s financial district, and multiple apartments in central London.
“Now the Federal Bureau of Investigation and allies carried out one of the biggest crackdowns on fraud in recorded time,” said FBI director the official in a announcement about the measures.
Who else Is Involved?
According to the US assistant attorney general, the accused was the alleged “mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella”. He was added to a US sanctions list this month together with more than a dozen other individuals suspected of being participating in his business empire.
Over a hundred business entities – registered in multiple Asian jurisdictions and more – were also added to a blacklist because of suspected connections to the leader.
Impact of the Sanctions Do?
A representative from Cambodia's government told news agencies that the government would cooperate with other countries in the legal proceeding against Chen.
“We are not protecting individuals that break regulations,” the official said. “But it does not mean that we blame Prince Group or Chen Zhi of committing crimes similar to the allegations made by the US or the UK.”
In spite of the historic set of penalties, experts say the scam industry is still enormous, with the UN estimating in recent years that about 100,000 people were being forced to carry out online scams in Cambodia, as well as at least one hundred twenty thousand in Myanmar and many thousands in other Southeast Asian states.
Given the widespread nature of the enterprise in multiple south-east Asian countries, some fear any apprehensions will create a gap for additional global syndicates to swoop in.
