What Is 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 imposed sanctions on a global syndicate based in Southeast Asia, accused of orchestrating extensive online scam operations that are believed to exploiting victims of human trafficking to swindle people globally.
This industry has flourished in the past few years, especially in parts of Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then forced to carry out online fraud, such as romance scams, sometimes under the menace of physical harm.
The United States Treasury stated it had implemented what it described as the largest action ever in Southeast Asia, targeting 146 people connected to the so-called organization, which the UK also penalized.
Those targeted comprise the leader of the alleged network, the accused figure, as well as more than a dozen individuals linked with his commercial activities across south-east Asia and the Pacific.
Understanding the Alleged Syndicate and the Identity of Chen Zhi?
Based on authoritative sources, Chen Zhi, thirty-eight, also referred to as “the alias”, is the leader and establisher of Prince Holding Group (the group), a global corporate entity based in Cambodia which, according to its website, is focused on “real estate development, banking operations and retail offerings”.
On October 14, US authorities stated that the accused, who is still evading capture, had been charged with wire fraud conspiracy and conspiracy to launder money for directing Prince Group’s operation of forced labour scam compounds throughout Cambodia.
His swift rise to riches has gained him significant political influence, including reported advisory roles to the nation's leader. The individual, born in China in 1987, is believed to have bought citizenship in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Reasons Behind the Group Been Sanctioned?
The Department of Justice claimed individuals had been held against their will in the scam compounds connected to the syndicate and made to participate in a variety of fraudulent schemes 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 (£11.3bn) in cryptocurrency and blocked London assets.
The seized assets are thought to include a £12m mansion on a prestigious street, one of London’s most expensive addresses, a £95m commercial building on Fenchurch Street in the center of the London's banking area, and multiple apartments in downtown London.
“Now the FBI and allies carried out one of the largest financial fraud takedowns in history,” said FBI director Kash Patel in a statement about the actions.
Who else Is Involved?
Based on the senior justice official, Chen was the supposed “chief architect behind a vast cyber-fraud empire functioning under the group's banner”. He was placed on a US sanctions list this October together with over a dozen additional persons believed to be participating in his business empire.
Over a hundred business entities – based in multiple Asian jurisdictions and more – were also placed on a blacklist because of suspected connections to Chen.
What will the Measures Do?
Cambodia’s interior ministry spokesperson told media outlets that the government would work together with foreign nations in the case against Chen.
“We do not protecting individuals that violate the law,” he said. “But it does not mean that we blame the group or its leader of committing crimes like the allegations issued by the United States or UK.”
In spite of the unprecedented tranche of sanctions, analysts say the scam industry is still enormous, with the UN estimating in recent years that about a hundred thousand individuals were being compelled to execute internet fraud in the nation, as well as at least one hundred twenty thousand in Myanmar and tens of thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the enterprise in multiple south-east Asian countries, some worry any apprehensions will create a gap for additional global syndicates to swoop in.
