Who Are Chen Zhi and the So-Called Crime Network, Targeted by the United States and United Kingdom of Large-Scale Scam Operations?

The United Kingdom and United States have imposed sanctions on a global syndicate operating from south-east Asia, accused of orchestrating extensive internet fraud schemes that are believed to exploiting victims of human trafficking to defraud people globally.

This industry has flourished in the past few years, especially in parts of Cambodia and Myanmar where hundreds of thousands have been duped by false job adverts and then forced to commit online fraud, including romance scams, sometimes under the menace of physical harm.

The US treasury department stated it had taken what it described as the most significant measure to date in south-east Asia, targeting 146 people associated with the Prince Group, which the UK also penalized.

Those sanctioned include the head of the Prince group, Chen Zhi, as well as numerous persons connected to his commercial activities across Southeast Asia and Pacific regions.

Understanding the Alleged Syndicate and Who is Chen Zhi?

Based on official statements, Chen Zhi, thirty-eight, also known as “Vincent”, is the founder and chairman of the so-called conglomerate (Prince Group), a multinational business conglomerate based in the Southeast Asian nation which, as per its online presence, is focused on “property investment, financial services and retail offerings”.

On 14 October, American officials stated that Chen, who is still evading capture, had been indicted for wire fraud conspiracy and money laundering conspiracy for overseeing the group's activities of fraud centers using coerced labor throughout the country.

Chen’s rapid ascent to wealth has won him substantial clout, comprising alleged consulting positions to Cambodia’s prime minister. The individual, 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 claimed people had been held against their will in the scam compounds connected to the group and forced to engage in a range of deceptive practices that stole billions of dollars from targets in the United States and globally.

As part of the investigation into the leader, the US and UK have seized $15 billion (£11.3bn) in cryptocurrency and frozen London assets.

The frozen properties are believed to comprise a £12m residence on a prestigious street, one of London’s most expensive addresses, a £95 million commercial building 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 recorded time,” said FBI director Kash Patel in a announcement about the measures.

Other Parties Is Involved?

According to the senior justice official, the accused was the supposed “chief architect behind a vast digital scam network operating under the Prince Group umbrella”. He was added to a American blacklist this month together with over a dozen additional persons believed to be participating in his commercial network.

Over a hundred business entities – based in Cambodia, Singapore, Hong Kong and Taiwan and more – were also added to a blacklist because of alleged links to the leader.

Impact of the Measures Achieve?

Cambodia’s interior ministry spokesperson told news agencies that the authorities would cooperate with other countries in the case against Chen.

“We are not protecting individuals that break regulations,” the official said. “However, this does not imply that we blame Prince Group or Chen Zhi of engaging in illegal acts similar to the claims made by the US or the UK.”

Despite the historic set of penalties, analysts say the scam industry is still enormous, with the United Nations estimating in recent years that about a hundred thousand individuals were being compelled to carry out online scams 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 industry in multiple Southeast Asian nations, some worry any apprehensions will create a gap for other transnational groups to take over.