Who Are Chen Zhi and the Prince Group, Accused by the United States and United Kingdom of Massive Scam Operations?
The United Kingdom and United States have imposed sanctions on a global syndicate based in south-east Asia, allegedly running large-scale internet fraud schemes that are believed to exploiting trafficked workers to swindle people around the world.
This industry has expanded in recent years, particularly in parts of Cambodia and Myanmar where hundreds of thousands have been deceived by false job adverts and then coerced to carry out internet scams, such as fake relationship schemes, sometimes under the menace of torture.
The US treasury department stated it had taken what it described as the largest action ever in south-east Asia, focusing on 146 people associated with the Prince Group, which the United Kingdom also penalized.
Those targeted comprise the head of the alleged network, Chen Zhi, as well as more than a dozen persons connected to his commercial activities throughout south-east Asia and the Pacific.
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 leader and establisher of Prince Holding Group (Prince Group), a multinational business conglomerate based in Cambodia which, according to its website, is focused on “property investment, banking operations and retail offerings”.
On 14 October, American officials stated that the accused, who remains at large, had been charged with wire fraud conspiracy and money laundering conspiracy for directing the group's activities of forced labour scam compounds throughout Cambodia.
His swift rise to riches has gained him significant political influence, comprising reported advisory roles to the nation's leader. The individual, a native of China from 1987, is thought to have bought citizenship in Cyprus and Vanuatu, and is also a Cambodian national.
Reasons Behind They Been Penalized?
The Department of Justice alleged people had been forcibly detained in the scam compounds linked with the group and made to engage in a variety of fraudulent schemes that stole massive sums from targets in the US and worldwide.
As part of the investigation into Chen, the United States and UK have seized $15bn (£11.3bn) in bitcoin and blocked London assets.
The frozen properties are thought to include a £12 million residence on a prestigious street, one of London’s most expensive addresses, a £95m commercial building on a key financial avenue in the center of the City of London’s financial district, and several flats in downtown London.
“Now the Federal Bureau of Investigation and allies carried out one of the biggest crackdowns on fraud in recorded time,” said the bureau's head the official in a statement about the actions.
Who else Is Involved?
Based on the senior justice official, Chen was the alleged “chief architect behind a sprawling cyber-fraud empire operating under the Prince Group umbrella”. He was added to a American blacklist this month alongside over a dozen other individuals suspected of being involved in his commercial network.
More than 100 business entities – based in multiple Asian jurisdictions and more – were also added to a blacklist because of alleged links to Chen.
What will the Measures Do?
A representative from Cambodia's government told media outlets that the government would work together with foreign nations in the case against the individual.
“We do not protecting persons that violate the law,” 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, analysts say the scam industry is still massive, with the UN calculating in recent years that about 100,000 people were being forced to execute internet fraud in the nation, as well as at least 120,000 in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the enterprise in multiple Southeast Asian nations, some worry any arrests will leave a vacuum for other transnational groups to swoop in.
