Who Are Chen Zhi and the Prince Group, Accused by the US and UK of Large-Scale Scam Operations?
The UK and United States have imposed sanctions on a multinational network based in south-east Asia, allegedly orchestrating extensive online scam operations that are believed to using trafficked workers to defraud individuals globally.
This industry has expanded in recent years, especially in parts of Cambodia and Myanmar where hundreds of thousands have been deceived by false job adverts and then coerced to commit online fraud, including fake relationship schemes, sometimes under the threat of physical harm.
The US treasury department stated it had implemented what it called the most significant measure to date in south-east Asia, focusing on over a hundred individuals connected to the so-called organization, which the UK also sanctioned.
Those sanctioned include the leader of the alleged network, the accused figure, as well as more than a dozen individuals connected to his business operations across south-east Asia and the Pacific.
What is the Prince Group and the Identity of Chen Zhi?
Based on authoritative sources, Chen Zhi, 38, also referred to as “Vincent”, is the founder and chairman of the so-called conglomerate (Prince Group), a global corporate entity based in the Southeast Asian nation which, according to its website, is focused on “property investment, financial services and retail offerings”.
On 14 October, US authorities stated that Chen, who remains at large, had been indicted for wire fraud conspiracy and conspiracy to launder money for overseeing the group's activities of forced labour scam compounds throughout Cambodia.
Chen’s rapid ascent to wealth has gained him significant political influence, including alleged consulting positions to the nation's leader. Chen, 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 They Been Sanctioned?
The Department of Justice claimed people had been held against their will in the scam compounds linked with the group and made to participate in a variety of fraudulent schemes that stole massive sums from victims in the US and worldwide.
As part of the investigation into the leader, the United States and UK have confiscated $15 billion (£11.3 billion) in bitcoin and blocked London assets.
The seized assets are thought to include a £12m residence on Avenue Road, one of London’s most expensive addresses, a £95m office block on a key financial avenue in the heart of the London's banking area, and several flats in downtown London.
“Today the FBI and partners executed one of the largest financial fraud takedowns in history,” said FBI director the official in a announcement about the measures.
Who else Is Involved?
According to the senior justice official, Chen was the supposed “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 believed to be involved in his business empire.
More than 100 business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a blacklist because of suspected connections to Chen.
What will the Sanctions Do?
Cambodia’s interior ministry spokesperson told media outlets that the authorities would cooperate with other countries in the case against the individual.
“We are not protecting persons that break regulations,” he said. “But it does not mean that we are accusing the group or its leader of engaging in illegal acts similar to the claims made by the United States or UK.”
In spite of the unprecedented tranche of sanctions, experts say the scam industry is still enormous, with the UN calculating in 2023 that about 100,000 people were being compelled to carry out online scams in the nation, as well as at least 120,000 in Myanmar and many thousands in Thailand, Laos and the Philippines.
Given the prevalence of the enterprise in multiple Southeast Asian nations, some worry any apprehensions will leave a vacuum for additional global syndicates to swoop in.
