Who Are the Alleged Leader and the So-Called Crime Network, Accused by the United States and United Kingdom of Massive Scam Operations?
The UK and United States have enforced measures on a multinational network based in Southeast Asia, allegedly running extensive online scam operations that are suspected of using victims of human trafficking to defraud individuals globally.
This industry has flourished in the past few years, especially in parts of Cambodia and Myanmar where countless individuals have been deceived by fraudulent employment offers and then forced to commit online fraud, including fake relationship schemes, often under the threat of torture.
The United States Treasury stated it had taken what it called the largest action ever in Southeast Asia, focusing on 146 people associated with the Prince Group, which the UK also sanctioned.
Those targeted comprise the leader of the Prince group, Chen Zhi, as well as more than a dozen persons linked with his commercial activities across south-east Asia and the Pacific.
What is the Alleged Syndicate and the Identity of Chen Zhi?
Based on official statements, Chen Zhi, thirty-eight, also referred to as “Vincent”, 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 “property investment, financial services and retail offerings”.
On October 14, US authorities stated that the accused, 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 Cambodia.
Chen’s rapid ascent to wealth has gained him substantial clout, including alleged consulting positions to Cambodia’s prime minister. Chen, born in China in 1987, is believed to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have the Group Been Sanctioned?
The Department of Justice alleged people had been held against their will in the scam compounds connected to the group and forced to engage in a range 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 US and UK have confiscated $15 billion (£11.3 billion) in bitcoin and blocked properties in London.
The seized assets are believed to comprise a £12m residence on Avenue Road, one of London’s most expensive addresses, a £95m commercial building on a key financial avenue in the heart of the City of London’s financial district, and multiple apartments in downtown London.
“Today the Federal Bureau of Investigation and allies executed one of the biggest crackdowns on fraud in recorded time,” said FBI director Kash Patel in a statement about the measures.
Other Parties Is Involved?
Based on the senior justice official, Chen was the alleged “chief architect behind a sprawling cyber-fraud empire operating under the Prince Group umbrella”. He was added to a American blacklist this October alongside over a dozen additional persons believed to be involved in his business empire.
Over a hundred corporate bodies – based in multiple Asian jurisdictions and more – were also added to a blacklist because of suspected connections to the leader.
What will the Measures Achieve?
A representative from Cambodia's government told news agencies that the authorities would work together with other countries in the case against Chen.
“We are not protecting individuals that violate the law,” he said. “But it does not mean that we are accusing the group or its leader of engaging in illegal acts similar to the claims made by the United States or UK.”
In spite of the historic set of penalties, experts say the scam industry is still massive, with the United Nations estimating in recent years that about 100,000 people were being forced to execute internet fraud in the nation, as well as at least 120,000 in Myanmar and tens of thousands in other Southeast Asian states.
Given the widespread nature of the enterprise in several south-east Asian countries, certain worry any arrests will leave a vacuum for additional global syndicates to swoop in.
