Who Are Chen Zhi and the Prince Group, Accused by the US and UK of Massive Scam Operations?
The United Kingdom and US have imposed sanctions on a global syndicate operating from Southeast Asia, allegedly orchestrating large-scale internet fraud schemes that are suspected of exploiting victims of human trafficking to swindle individuals globally.
This industry has flourished in recent years, particularly in parts of Cambodia and Myanmar where countless individuals have been deceived by false job adverts and then forced to carry out online fraud, including fake relationship schemes, often under the threat of physical harm.
The US treasury department stated it had taken what it called the most significant measure to date in south-east Asia, targeting 146 people connected to the so-called organization, which the UK also penalized.
Those targeted include the head of the Prince group, the accused figure, as well as numerous individuals linked with his business operations across south-east Asia and the Pacific.
What is the Alleged Syndicate and Who is Chen Zhi?
According to authoritative sources, Chen Zhi, 38, also known as “Vincent”, is the founder and chairman of the so-called conglomerate (Prince Group), a global corporate entity based in Cambodia which, as per its online presence, is centered around “real estate development, banking operations and consumer services”.
On October 14, American officials stated that the accused, who is still evading capture, had been indicted for wire fraud conspiracy and conspiracy to launder money for directing Prince Group’s operation of fraud centers using coerced labor across the country.
His swift rise to riches has gained him substantial clout, comprising reported advisory roles to Cambodia’s prime minister. The individual, a native of China from 1987, is thought to have acquired nationality in Cyprus and Vanuatu, and is also a Cambodian national.
Why have the Group Been Sanctioned?
The Department of Justice claimed people had been forcibly detained in the scam compounds connected to the syndicate and forced to engage in a variety of fraudulent schemes that stole billions of dollars from targets in the United States and worldwide.
As part of the probe into the leader, the United States and UK have seized $15 billion (£11.3 billion) in bitcoin and blocked properties in London.
The seized assets are believed to comprise a £12m mansion on a prestigious street, one of the costliest locations in London, a £95m commercial building on Fenchurch Street in the heart of the City of London’s financial district, and multiple apartments in downtown London.
“Now the FBI and partners carried out one of the biggest crackdowns on fraud in history,” said the bureau's head Kash Patel in a statement about the actions.
Other Parties Is Involved?
According to the US assistant attorney general, Chen was the alleged “mastermind behind a vast cyber-fraud empire operating under the Prince Group umbrella”. He was placed on a American blacklist this October together with over a dozen other individuals suspected of being participating in his business empire.
Over a hundred corporate bodies – based in Cambodia, Singapore, Hong Kong and Taiwan and more – were also added to a blacklist because of suspected connections to the leader.
What will the Sanctions Achieve?
Cambodia’s interior ministry spokesperson told news agencies that the authorities would work together with foreign nations in the legal proceeding against Chen.
“We do not shielding individuals that break regulations,” he said. “But it does not mean that we blame the group or its leader of engaging in illegal acts like the claims issued by the United States or UK.”
In spite of the unprecedented tranche of sanctions, analysts say the scam industry is still enormous, with the United Nations estimating in recent years that about 100,000 people were being forced to carry out online scams in Cambodia, as well as at least 120,000 in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Considering the prevalence of the enterprise in multiple south-east Asian countries, certain worry any arrests will leave a vacuum for other transnational groups to take over.
