Who Is Chen Zhi and the Prince Group, Targeted by the US and UK of Large-Scale Scam Operations?
The United Kingdom and US have enforced measures on a global syndicate operating from south-east Asia, accused of running extensive internet fraud schemes that are believed to exploiting trafficked workers to swindle individuals globally.
This industry has flourished in recent years, particularly in certain areas in Cambodia and Myanmar where countless individuals have been duped by false job adverts and then forced to commit internet scams, such as romance scams, sometimes under the threat of physical harm.
The United States Treasury stated it had taken what it called the largest action ever in south-east Asia, focusing on 146 people connected to the so-called organization, which the United Kingdom also penalized.
Those targeted comprise the leader of the alleged network, the accused figure, as well as more than a dozen individuals connected to his business operations throughout Southeast Asia and Pacific regions.
What is the Prince Group and Who is Chen Zhi?
According to official statements, Chen Zhi, 38, also known as “Vincent”, is the leader and establisher of Prince Holding Group (Prince Group), a global corporate entity 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, US authorities stated that the accused, who is still evading capture, had been charged with wire fraud conspiracy 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 reported advisory roles to Cambodia’s prime minister. The individual, born in China in 1987, is thought to have acquired nationality in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have the Group Been Penalized?
The Department of Justice alleged individuals had been forcibly detained in the scam compounds connected to the syndicate and forced to participate in a range of fraudulent schemes that defrauded massive sums from victims in the United States and globally.
As part of the probe into Chen, the United States and UK have seized $15 billion (£11.3bn) in cryptocurrency and frozen properties in London.
The seized assets are believed to comprise a £12m residence on Avenue Road, one of the costliest locations in London, a £95m office block on a key financial avenue in the heart of the City of London’s financial district, and multiple apartments in downtown London.
“Now the FBI and allies carried out one of the biggest crackdowns on fraud in history,” said FBI director the official in a statement about the measures.
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 placed on a US sanctions list this October together with more than a dozen other individuals believed to be participating in his commercial network.
Over a hundred corporate bodies – based in multiple Asian jurisdictions among others – were also added to a sanctions list because of suspected connections to the leader.
Impact of the Measures Achieve?
Cambodia’s interior ministry spokesperson told media outlets that the government would work together with foreign nations in the legal proceeding against Chen.
“We do not protecting individuals that violate the law,” the official said. “However, this does not imply that we blame the group or its leader of committing crimes similar to 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 United Nations calculating in 2023 that about 100,000 people were being forced to carry out online scams in the nation, as well as at least 120,000 in Myanmar and many thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the industry in several south-east Asian countries, some fear any apprehensions will leave a vacuum for additional global syndicates to swoop in.