Who Is Chen Zhi and the So-Called Crime Network, Targeted by the United States and United Kingdom of Massive Fraudulent Schemes?
The United Kingdom and US have enforced measures on a global syndicate based in south-east Asia, allegedly running large-scale internet fraud schemes that are suspected of using victims of human trafficking to defraud people around the world.
This industry has flourished in recent years, especially in parts of Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then forced to carry out online fraud, such as fake relationship schemes, sometimes under the menace of torture.
The United States Treasury stated it had implemented what it described as the most significant measure to date in Southeast Asia, targeting 146 people associated with the so-called organization, which the United Kingdom also sanctioned.
Those sanctioned include the leader of the Prince group, the accused figure, as well as more than a dozen persons linked with his commercial activities throughout Southeast Asia and Pacific regions.
What is the Alleged Syndicate and Who is Chen Zhi?
According to authoritative sources, the individual in question, 38, also referred to as “the alias”, is the leader and establisher of the so-called conglomerate (Prince Group), a multinational business conglomerate headquartered in the Southeast Asian nation which, according to its website, is centered around “property investment, financial services and consumer services”.
On 14 October, 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 across Cambodia.
Chen’s rapid ascent to wealth has gained him significant political influence, comprising alleged consulting positions to the nation's leader. The individual, a native of China from 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Reasons Behind They Been Penalized?
The Department of Justice claimed people had been held against their will in the scam compounds connected to the syndicate and forced to participate in a variety of deceptive practices that stole massive sums from victims in the United States and worldwide.
As part of the investigation into Chen, the United States and UK have confiscated $15 billion (£11.3 billion) in cryptocurrency and frozen London assets.
The seized assets are thought to include a £12m mansion on a prestigious street, one of London’s most expensive addresses, a £95 million commercial building on Fenchurch Street in the heart of the City of London’s financial district, and several flats in downtown London.
“Now the Federal Bureau of Investigation and allies executed one of the biggest crackdowns on fraud in history,” said FBI director Kash Patel in a announcement about the measures.
Other Parties Are Implicated?
Based on 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 placed on a American blacklist this month alongside more than a dozen other individuals believed to be involved in his business empire.
More than 100 business entities – based in multiple Asian jurisdictions among others – were also placed on a blacklist because of suspected connections to the leader.
What will the Measures Do?
A representative from Cambodia's government told media outlets that the authorities would cooperate with foreign nations in the legal proceeding against the individual.
“We are not shielding individuals that violate the law,” he said. “However, this does not imply that we are accusing the group or its leader of engaging in illegal acts similar to the allegations issued by the United States or UK.”
In spite of the historic set of penalties, experts say the fraud sector is still enormous, with the UN estimating in 2023 that about a hundred thousand individuals were being compelled to carry out 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.
Considering the widespread nature of the industry in multiple south-east Asian countries, some fear any arrests will create a gap for additional global syndicates to take over.
