Who Is Chen Zhi and the Prince Group, Targeted 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 south-east Asia, allegedly orchestrating large-scale internet fraud schemes that are believed to exploiting trafficked workers to defraud individuals around the world.
This criminal enterprise has expanded in recent years, particularly in parts of Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then coerced to commit internet scams, such as fake relationship schemes, often under the threat of torture.
The US treasury department stated it had implemented what it described as the most significant measure to date in south-east Asia, focusing on 146 people connected to the so-called organization, which the UK also penalized.
Those sanctioned comprise the head of the Prince group, Chen Zhi, as well as numerous persons linked with his commercial activities across south-east Asia and the Pacific.
Understanding the Prince Group and the Identity of Chen Zhi?
Based on official statements, the individual in question, thirty-eight, also referred to as “the alias”, is the leader and establisher of the so-called conglomerate (the group), a global corporate entity based in the Southeast Asian nation which, as per its online presence, is focused on “property investment, banking operations and retail offerings”.
On October 14, US authorities stated that the accused, who is still evading capture, had been indicted for wire fraud conspiracy and conspiracy to launder money for directing the group's activities of forced labour scam compounds across the country.
Chen’s rapid ascent to wealth has gained him substantial clout, comprising reported advisory roles to the nation's leader. The individual, a native of China from 1987, is thought to have acquired nationality in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have They Been Sanctioned?
The Department of Justice alleged people had been forcibly detained in the scam compounds linked with the group and forced to engage in a variety of fraudulent schemes that defrauded billions of dollars from victims in the US and globally.
As part of the probe into the leader, the US and UK have seized $15bn (£11.3bn) in cryptocurrency and blocked properties in London.
The seized assets are thought to include a £12 million mansion on a prestigious street, one of the costliest locations in London, a £95m commercial building on a key financial avenue in the center of the City of London’s financial district, and several flats in central London.
“Today the Federal Bureau of Investigation and partners executed one of the biggest crackdowns on fraud in recorded time,” said the bureau's head Kash Patel in a statement about the measures.
Who else Are Implicated?
Based on the US assistant attorney general, Chen was the supposed “chief architect behind a vast digital scam network functioning under the group's banner”. He was placed on a American blacklist this month together with over a dozen other individuals believed to be involved in his business empire.
Over a hundred corporate bodies – based in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a sanctions list because of suspected connections to the leader.
What will the Measures Achieve?
Cambodia’s interior ministry spokesperson told news agencies that the authorities would work together with other countries in the case against Chen.
“We do not shielding persons that break regulations,” he said. “But it does not mean that we blame Prince Group or Chen Zhi of committing crimes like the claims made by the United States or UK.”
In spite of the unprecedented tranche of sanctions, analysts say the scam industry is still massive, with the UN estimating in 2023 that about 100,000 people were being forced to carry out online scams in the nation, as well as at least 120,000 in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the enterprise in several Southeast Asian nations, some fear any apprehensions will leave a vacuum for other transnational groups to swoop in.
