Who Is Chen Zhi and the Prince Group, Accused by the United States and United Kingdom of Large-Scale Scam Operations?
The UK and US have enforced measures on a global syndicate based in south-east Asia, accused of orchestrating large-scale online scam operations that are suspected of using trafficked workers to swindle people around the world.
This industry has flourished in the past few years, particularly in certain areas in Cambodia and Myanmar where countless individuals have been deceived by false job adverts and then coerced to commit internet scams, such as fake relationship schemes, sometimes under the menace of torture.
The United States Treasury stated it had taken what it described as the most significant measure to date in Southeast Asia, targeting over a hundred individuals associated with the Prince Group, which the United Kingdom also penalized.
Those targeted include the head of the alleged network, the accused figure, as well as numerous individuals linked with his commercial activities across south-east Asia and the Pacific.
Understanding the Alleged Syndicate and Who is Chen Zhi?
Based on authoritative sources, the individual in question, thirty-eight, also known as “Vincent”, is the founder and chairman of the so-called conglomerate (Prince Group), a global corporate entity headquartered in Cambodia which, as per its online presence, is focused on “real estate development, financial services and retail offerings”.
On October 14, US authorities stated that Chen, who is still evading capture, had been indicted for conspiracy to commit fraud and conspiracy to launder money for directing Prince Group’s operation of fraud centers using coerced labor throughout Cambodia.
Chen’s rapid ascent to wealth has won him substantial clout, including reported advisory roles to Cambodia’s prime minister. Chen, a native of China from 1987, is believed to have acquired nationality in Cyprus and Vanuatu, and is also a Cambodian national.
Why have They Been Sanctioned?
The US justice department alleged 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 defrauded massive sums from victims in the United States and globally.
As part of the probe into the leader, the US and UK have seized $15 billion (£11.3bn) in bitcoin and frozen London assets.
The frozen properties are thought to include a £12m residence on a prestigious street, one of the costliest locations in London, a £95m office block on a key financial avenue in the center of the London's banking area, and several flats in central London.
“Today the Federal Bureau of Investigation and allies executed one of the biggest crackdowns on fraud in history,” said FBI director the official in a announcement about the actions.
Other Parties Are Implicated?
Based on the senior justice official, Chen was the alleged “mastermind behind a sprawling cyber-fraud empire operating under the group's banner”. He was placed on a US sanctions list this month together with more than a dozen additional persons suspected of being participating in his commercial network.
Over a hundred business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also placed on a sanctions list because of suspected connections to the leader.
Impact of the Measures Do?
Cambodia’s interior ministry spokesperson told media outlets that the government would cooperate with other countries in the legal proceeding against the individual.
“We do not shielding individuals that violate the law,” the official said. “However, this does not imply that we blame Prince Group or Chen Zhi of committing crimes like the allegations issued by the US or the UK.”
In spite of the unprecedented tranche of sanctions, analysts say the fraud sector is still massive, with the United Nations estimating in 2023 that about a hundred thousand individuals were being forced to execute online scams in Cambodia, as well as at least one hundred twenty thousand in the neighboring country and many thousands in Thailand, Laos and the Philippines.
Given the prevalence of the enterprise in multiple south-east Asian countries, certain fear any apprehensions will create a gap for additional global syndicates to swoop in.
