Who Is Chen Zhi and the Prince Group, Targeted by the US and UK of Large-Scale Fraudulent Schemes?
The United Kingdom and US have imposed sanctions on a multinational network operating from Southeast Asia, accused of running large-scale internet fraud schemes that are believed to using trafficked workers to defraud individuals around the world.
This industry has flourished in recent years, especially in parts of Cambodia and Myanmar where hundreds of thousands have been deceived by false job adverts and then forced to carry out online fraud, such as romance scams, sometimes under the threat of torture.
The United States Treasury stated it had taken what it called the largest action ever in Southeast Asia, targeting over a hundred individuals associated with the Prince Group, which the United Kingdom also penalized.
Those sanctioned comprise the leader of the alleged network, Chen Zhi, as well as more than a dozen individuals linked with his business operations throughout Southeast Asia and Pacific regions.
Understanding the Prince Group and the Identity of Chen Zhi?
According to official statements, Chen Zhi, thirty-eight, also known as “the alias”, is the founder and chairman of Prince Holding Group (Prince Group), a global corporate entity based in Cambodia which, as per its online presence, is centered around “property investment, banking operations and consumer services”.
On October 14, US authorities stated that Chen, who remains at large, had been indicted for conspiracy to commit fraud and conspiracy to launder money for directing the group's activities of forced labour scam compounds throughout Cambodia.
Chen’s rapid ascent to wealth has won him significant political influence, comprising alleged consulting positions to Cambodia’s prime minister. The individual, a native of China from 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have the Group Been Penalized?
The US justice department alleged people had been held against their will in the fraudulent operation centers linked with the syndicate and forced to engage in a variety of fraudulent schemes that defrauded billions of dollars from targets in the United States and worldwide.
As part of the probe into Chen, the United States and UK have confiscated $15bn (£11.3 billion) in cryptocurrency and blocked London assets.
The frozen properties are believed to comprise a £12m residence on Avenue Road, one of London’s most expensive addresses, a £95 million office block on Fenchurch Street in the heart of the City of London’s financial district, and multiple apartments in central London.
“Today the FBI and allies executed one of the biggest crackdowns on fraud in recorded time,” said the bureau's head Kash Patel in a statement about the actions.
Other Parties Are Implicated?
Based on the US assistant attorney general, Chen was the alleged “chief architect behind a vast digital scam network functioning under the Prince Group umbrella”. He was placed on a American blacklist this month together with over a dozen additional persons suspected of being participating in his commercial network.
Over a hundred business entities – based in Cambodia, Singapore, Hong Kong and Taiwan and more – were also added to a blacklist because of suspected connections to the leader.
Impact of the Sanctions Do?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would work together with foreign nations in the legal proceeding against the individual.
“We are not protecting individuals that break regulations,” the official said. “However, this does not imply that we are accusing Prince Group or Chen Zhi of engaging in illegal acts similar to the allegations issued by the US or the UK.”
Despite the unprecedented tranche of sanctions, experts say the scam industry is still massive, with the UN estimating in 2023 that about a hundred thousand individuals were being compelled to carry out online scams in the nation, as well as at least 120,000 in the neighboring country and tens of thousands in other Southeast Asian states.
Given the prevalence of the enterprise in several Southeast Asian nations, some worry any apprehensions will leave a vacuum for other transnational groups to take over.
