Who Is the Alleged Leader and the So-Called Crime Network, Targeted by the US and UK of Large-Scale Scam Operations?
The United Kingdom and US have imposed sanctions on a global syndicate operating from Southeast Asia, allegedly orchestrating large-scale internet fraud schemes that are believed to exploiting victims of human trafficking to swindle individuals globally.
This industry has expanded in recent years, particularly in parts of Cambodia and Myanmar where countless individuals have been duped by fraudulent employment offers and then coerced to carry out online fraud, including romance scams, often under the threat of physical harm.
The US treasury department stated it had implemented what it described as the largest action ever in Southeast Asia, targeting 146 people associated with the Prince Group, which the UK also penalized.
Those sanctioned include the leader of the Prince group, Chen Zhi, as well as numerous persons connected to his commercial activities across south-east Asia and the Pacific.
Understanding the Prince Group and Who is Chen Zhi?
Based on official statements, the individual in question, 38, also known as “Vincent”, is the founder and chairman of the so-called conglomerate (Prince Group), a multinational business conglomerate headquartered in Cambodia which, according to its website, is focused on “real estate development, banking operations and retail offerings”.
On 14 October, American officials stated that Chen, who remains at large, had been charged with wire fraud conspiracy and money laundering conspiracy for directing Prince Group’s operation of fraud centers using coerced labor throughout Cambodia.
Chen’s rapid ascent to wealth has gained him significant political influence, including reported advisory roles to Cambodia’s prime minister. Chen, born in China in 1987, is thought 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 linked with the group and forced to participate in a range of fraudulent schemes that stole massive sums from targets in the United States and globally.
As part of the probe into Chen, the US and UK have seized $15 billion (£11.3bn) in bitcoin and frozen London assets.
The seized assets are believed to comprise a £12m mansion on Avenue Road, one of the costliest locations in London, a £95 million office block on a key financial avenue in the heart of the London's banking area, and multiple apartments in central London.
“Now the FBI and partners carried out one of the largest financial fraud takedowns in recorded time,” said FBI director Kash Patel in a announcement about the measures.
Who else Is Involved?
According to the senior justice official, the accused was the alleged “mastermind behind a vast digital scam network functioning under the group's banner”. He was added to a US sanctions list this October alongside more than a dozen other individuals suspected of being involved in his business empire.
More than 100 corporate bodies – based in multiple Asian jurisdictions among others – were also added to a blacklist because of alleged links to Chen.
Impact of the Sanctions Do?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would cooperate with other countries in the legal proceeding against Chen.
“We do not protecting individuals that break regulations,” he said. “But it does not mean that we blame Prince Group or Chen Zhi of committing crimes similar to the claims made by the US or the UK.”
Despite the unprecedented tranche of sanctions, analysts say the fraud sector is still enormous, with the UN estimating in 2023 that about a hundred thousand individuals were being forced to execute internet fraud in the nation, as well as at least one hundred twenty thousand in the neighboring country and many thousands in other Southeast Asian states.
Given the widespread nature of the industry in multiple south-east Asian countries, some worry any arrests will create a gap for other transnational groups to take over.
