What Is Chen Zhi and the So-Called Crime Network, Accused by the US and UK of Massive Scam Operations?

The United Kingdom and United States have imposed sanctions on a global syndicate operating from south-east Asia, allegedly running extensive online scam operations that are believed to exploiting victims of human trafficking to defraud people globally.

This industry has flourished in the past few years, particularly in parts of Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then coerced to commit internet scams, including romance scams, often under the menace of torture.

The United States Treasury stated it had taken what it called the most significant measure to date in south-east Asia, targeting over a hundred individuals associated with the Prince Group, which the United Kingdom also sanctioned.

Those sanctioned include the head of the Prince group, the accused figure, as well as numerous persons connected to his business operations across 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 known as “the alias”, is the leader and establisher of Prince Holding Group (the group), a multinational business conglomerate headquartered in the Southeast Asian nation which, as per its online presence, is focused on “real estate development, banking operations and retail offerings”.

On October 14, American officials stated that the accused, who remains at large, had been charged with wire fraud conspiracy and conspiracy to launder money for overseeing the group's activities of forced labour scam compounds throughout the country.

Chen’s rapid ascent to wealth has won him substantial clout, including reported advisory roles to the nation's leader. The individual, born in China in 1987, is believed to have acquired nationality in Vanuatu and Cyprus, and is also a citizen of Cambodia.

Why have They Been Penalized?

The Department of Justice alleged people had been forcibly detained in the fraudulent operation centers linked with the group and forced to participate in a range of fraudulent schemes that defrauded billions of dollars from targets in the US and worldwide.

As part of the probe into the leader, the United States and UK have confiscated $15bn (£11.3bn) in cryptocurrency and frozen London assets.

The seized assets are believed to comprise a £12 million mansion on Avenue Road, one of the costliest locations in London, a £95 million commercial building on Fenchurch Street in the center of the London's banking area, and multiple apartments in central London.

“Today the FBI and allies carried out one of the biggest crackdowns on fraud in recorded time,” said the bureau's head the official in a announcement about the measures.

Other Parties Are Implicated?

According to the US assistant attorney general, the accused was the supposed “mastermind behind a sprawling digital scam network operating under the group's banner”. He was added to a American blacklist this month together with over a dozen additional persons believed to be involved in his commercial network.

More than 100 corporate bodies – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also placed on a sanctions list because of suspected connections to Chen.

Impact of the Sanctions Achieve?

A representative from Cambodia's government told news agencies that the authorities would work together with other countries in the legal proceeding against Chen.

“We are not shielding persons that break regulations,” the official said. “However, this does not imply that we are accusing the group or its leader of engaging in illegal acts similar to the allegations made by the US or the 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 a hundred thousand individuals were being compelled to carry out internet fraud in the nation, as well as at least 120,000 in Myanmar and tens of thousands in Thailand, Laos and the Philippines.

Given the prevalence of the enterprise in several Southeast Asian nations, some fear any arrests will create a gap for other transnational groups to swoop in.