What Is Chen Zhi and the So-Called Crime Network, Targeted by the US and UK of Massive Fraudulent Schemes?
The United Kingdom and US have enforced measures on a global syndicate based in south-east Asia, accused of running large-scale online scam operations that are believed to using trafficked workers to swindle people around the world.
This industry has expanded in recent years, especially in certain areas in Myanmar and Cambodia where hundreds of thousands have been deceived by false job adverts and then coerced to carry out online fraud, such as fake relationship schemes, sometimes under the threat of physical harm.
The United States Treasury stated it had implemented what it called the most significant measure to date in Southeast Asia, targeting over a hundred individuals connected to the Prince Group, which the United Kingdom also sanctioned.
Those targeted include the head of the Prince group, the accused figure, as well as numerous persons connected to his business operations throughout Southeast Asia and Pacific regions.
Understanding the Prince Group and the Identity of Chen Zhi?
Based on official statements, Chen Zhi, thirty-eight, also known as “the alias”, is the leader and establisher of Prince Holding Group (Prince Group), a multinational business conglomerate headquartered in Cambodia which, as per its online presence, is focused on “real estate development, financial services and retail offerings”.
On October 14, US authorities stated that Chen, who remains at large, had been charged with conspiracy to commit fraud and conspiracy to launder money for overseeing Prince Group’s operation of forced labour scam compounds throughout the country.
Chen’s rapid ascent to wealth has gained him substantial clout, comprising 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 Cambodian national.
Reasons Behind They Been Sanctioned?
The US justice department alleged individuals had been held against their will in the fraudulent operation centers connected to the group and forced to engage in a variety of deceptive practices that stole massive sums from targets in the United States and globally.
As part of the probe into the leader, the US and UK have confiscated $15 billion (£11.3 billion) in bitcoin and frozen London assets.
The seized assets are believed to comprise a £12 million mansion on a prestigious street, one of the costliest locations in London, a £95m office block 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 partners carried out one of the biggest crackdowns on fraud in recorded time,” said the bureau's head the official in a statement about the actions.
Other Parties Is Involved?
Based on the US assistant attorney general, Chen was the alleged “mastermind behind a sprawling cyber-fraud empire functioning under the Prince Group umbrella”. He was added to a American blacklist this month alongside over a dozen other individuals suspected of being participating in his business empire.
More than 100 business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also placed on a blacklist because of suspected connections to Chen.
What will the Sanctions Do?
A representative from Cambodia's government told media outlets that the government would cooperate with foreign nations in the legal proceeding against Chen.
“We do not shielding individuals that break regulations,” the official said. “But it does not mean that we blame the group or its leader of engaging in illegal acts similar to the claims made by the United States or UK.”
Despite the unprecedented tranche of sanctions, experts say the fraud sector is still enormous, with the United Nations calculating in recent years that about a hundred thousand individuals were being forced to carry out online scams in the nation, as well as at least one hundred twenty thousand in Myanmar and many thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the industry in several south-east Asian countries, certain fear any arrests will create a gap for other transnational groups to take over.
