What Is Chen Zhi and the So-Called Crime Network, Targeted by the United States and United Kingdom of Large-Scale Scam Operations?
The United Kingdom and US have imposed sanctions on a global syndicate operating from Southeast Asia, accused of orchestrating large-scale online scam operations that are suspected of using trafficked workers to swindle people around the world.
This industry has expanded in recent years, particularly in certain areas in Myanmar and Cambodia where countless individuals have been deceived by false job adverts and then coerced to commit internet scams, such as romance scams, sometimes under the menace of torture.
The US treasury department stated it had taken what it described as the most significant measure to date in Southeast Asia, targeting over a hundred individuals associated with the so-called organization, which the United Kingdom also sanctioned.
Those sanctioned include the leader of the Prince group, Chen Zhi, as well as numerous individuals connected to his commercial activities throughout south-east Asia and the Pacific.
What is the Alleged Syndicate and Who is Chen Zhi?
Based on authoritative sources, Chen Zhi, thirty-eight, also referred to as “the alias”, is the founder and chairman of the so-called conglomerate (the group), a global corporate entity based in the Southeast Asian nation which, as per its online presence, is centered around “property investment, financial services and consumer services”.
On 14 October, American officials stated that the accused, who is still evading capture, had been indicted for wire fraud conspiracy and money laundering conspiracy for directing the group's activities of fraud centers using coerced labor across Cambodia.
His swift rise to riches has won him substantial clout, including alleged consulting positions to the nation's leader. The individual, a native of China from 1987, is believed to have bought citizenship in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Reasons Behind the Group Been Penalized?
The Department of Justice claimed individuals had been held against their will in the scam compounds linked with the syndicate and made to participate in a variety of fraudulent schemes that stole billions of dollars from targets in the US and globally.
As part of the probe into the leader, the US and UK have seized $15 billion (£11.3bn) in bitcoin and frozen London assets.
The seized assets are thought to include 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 several flats in downtown London.
“Today the Federal Bureau of Investigation and partners carried out one of the biggest crackdowns on fraud in recorded time,” said the bureau's head Kash Patel in a statement about the actions.
Who else Is Involved?
According to the US assistant attorney general, Chen was the alleged “chief architect behind a vast cyber-fraud empire operating under the group's banner”. He was added to a US sanctions list this month alongside over a dozen additional persons believed to be involved in his commercial network.
More than 100 business entities – based in Cambodia, Singapore, Hong Kong and Taiwan and more – were also added to a blacklist because of alleged links to the leader.
What will the Sanctions Do?
A representative from Cambodia's government told media outlets that the government would work together with other countries in the legal proceeding against the individual.
“We do not shielding individuals that violate the law,” the official said. “But it does not mean that we blame Prince Group or Chen Zhi of engaging in illegal acts like the claims issued by the US or the UK.”
Despite the historic set of penalties, analysts say the scam industry is still enormous, with the UN calculating in recent years that about 100,000 people were being forced to carry out online scams in the nation, as well as at least 120,000 in Myanmar and many thousands in other Southeast Asian states.
Considering the prevalence of the enterprise in several south-east Asian countries, certain worry any arrests will leave a vacuum for additional global syndicates to take over.
