What Are Chen Zhi and the So-Called Crime Network, Accused by the US and UK of Large-Scale Fraudulent Schemes?
The United Kingdom and United States have enforced measures on a global syndicate operating from Southeast Asia, accused of running large-scale online scam operations that are believed to using victims of human trafficking to swindle people globally.
This industry has flourished in recent years, particularly in parts of Cambodia and Myanmar where countless individuals have been duped by fraudulent employment offers and then forced to carry out online fraud, including fake relationship schemes, often under the menace of torture.
The United States Treasury stated it had taken what it described as the largest action ever in south-east Asia, focusing on 146 people connected to the so-called organization, which the United Kingdom also sanctioned.
Those sanctioned include the head of the alleged network, the accused figure, as well as more than a dozen individuals connected to his business operations throughout south-east Asia and the Pacific.
What is the Alleged Syndicate and the Identity of Chen Zhi?
According to authoritative sources, Chen Zhi, thirty-eight, also known as “the alias”, is the leader and establisher of the so-called conglomerate (Prince Group), a global corporate entity based in Cambodia which, according to its website, is focused on “property investment, banking operations and consumer services”.
On 14 October, US authorities stated that Chen, who is still evading capture, had been charged with conspiracy to commit fraud and conspiracy to launder money for overseeing the group's activities of fraud centers using coerced labor throughout Cambodia.
His swift rise to riches has won him significant political influence, including alleged consulting positions to Cambodia’s prime minister. The individual, a native of China from 1987, is believed to have acquired nationality in Cyprus and Vanuatu, and is also a Cambodian national.
Why have They Been Penalized?
The Department of Justice claimed people had been held against their will in the fraudulent operation centers linked with the group and made to engage in a variety of deceptive practices that stole billions of dollars from targets in the United States and globally.
As part of the investigation into Chen, the United States and UK have confiscated $15 billion (£11.3bn) in cryptocurrency and frozen properties in London.
The frozen properties are believed to comprise a £12 million residence on a prestigious street, one of London’s most expensive addresses, a £95 million office block on Fenchurch Street in the center of the London's banking area, and several flats in downtown London.
“Today the Federal Bureau of Investigation and allies executed one of the largest financial fraud takedowns in history,” said the bureau's head the official in a statement about the actions.
Who else Is Involved?
According to the senior justice official, Chen was the alleged “mastermind behind a sprawling digital scam network functioning under the Prince Group umbrella”. He was placed on a US sanctions list this month together with over a dozen additional persons believed to be involved in his business empire.
Over a hundred business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a sanctions list because of suspected connections to the leader.
Impact of the Sanctions Achieve?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would cooperate with other countries in the legal proceeding against the individual.
“We do not shielding individuals that break regulations,” he 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 United States or UK.”
Despite the unprecedented tranche of sanctions, experts say the fraud sector is still enormous, with the UN calculating in 2023 that about a hundred thousand individuals were being compelled to execute internet fraud in the nation, as well as at least 120,000 in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Considering the prevalence of the enterprise in multiple south-east Asian countries, certain worry any arrests will leave a vacuum for additional global syndicates to swoop in.