What Is Chen Zhi and the Prince Group, Targeted by the US and UK of Massive Fraudulent Schemes?
The United Kingdom and United States have enforced measures on a global syndicate based in Southeast Asia, allegedly running large-scale online scam operations that are believed to exploiting victims of human trafficking to swindle people globally.
This criminal enterprise has flourished in recent years, especially in certain areas in Myanmar and Cambodia where hundreds of thousands have been duped by fraudulent employment offers and then forced to carry out internet scams, such as romance scams, often under the menace of physical harm.
The United States Treasury stated it had implemented what it described as the most significant measure to date in south-east Asia, targeting over a hundred individuals connected to the so-called organization, which the UK also sanctioned.
Those targeted include the leader of the alleged network, Chen Zhi, as well as numerous persons linked with his business operations across south-east Asia and the Pacific.
Understanding the Alleged Syndicate and Who is Chen Zhi?
According to official statements, the individual in question, 38, also known as “the alias”, is the founder and chairman of Prince Holding Group (the group), a multinational business conglomerate headquartered in the Southeast Asian nation which, as per its online presence, is centered around “real estate development, banking operations and retail offerings”.
On 14 October, US authorities stated that the accused, who remains at large, had been charged with wire fraud conspiracy and conspiracy to launder money for overseeing Prince Group’s operation of forced labour scam compounds across Cambodia.
Chen’s rapid ascent to wealth has won him substantial clout, including reported advisory roles to the nation's leader. Chen, a native of China from 1987, is believed to have acquired nationality in Vanuatu and Cyprus, and is also a Cambodian national.
Why have They Been Sanctioned?
The US justice department claimed individuals had been forcibly detained in the scam compounds linked with the group and made to engage in a variety of fraudulent schemes that stole billions of dollars from targets in the United States and globally.
As part of the investigation into Chen, the US and UK have confiscated $15bn (£11.3 billion) in bitcoin and blocked properties in London.
The frozen properties are believed to comprise a £12 million residence on Avenue Road, one of the costliest locations in London, a £95 million commercial building on a key financial avenue in the heart of the City of London’s financial district, and several flats in central London.
“Today the FBI and allies carried out one of the biggest crackdowns on fraud in recorded time,” said FBI director the official in a announcement about the measures.
Who else Is Involved?
Based on the US assistant attorney general, the accused was the alleged “mastermind behind a vast digital scam network operating under the Prince Group umbrella”. He was added to a US sanctions list this October alongside more than a dozen additional persons believed to be involved in his business empire.
Over a hundred business entities – registered in multiple Asian jurisdictions and more – were also placed on a sanctions list because of alleged links to Chen.
Impact of the Measures Do?
A representative from Cambodia's government told news agencies that the government would cooperate with foreign nations in the legal proceeding against Chen.
“We do not shielding individuals that violate the law,” he said. “However, this does not imply that we are accusing Prince Group or Chen Zhi of committing crimes similar to the allegations made by the US or the UK.”
In spite of the unprecedented tranche of sanctions, analysts say the fraud sector is still enormous, with the UN calculating in 2023 that about 100,000 people were being forced to execute internet fraud in the nation, as well as at least one hundred twenty thousand in Myanmar and many thousands in other Southeast Asian states.
Considering the prevalence of the industry in multiple Southeast Asian nations, some fear any arrests will create a gap for other transnational groups to take over.
