Who Is Chen Zhi and the So-Called Crime Network, Accused by the United States and United Kingdom of Massive Scam Operations?
The United Kingdom and United States have enforced measures on a global syndicate based in Southeast Asia, accused of running large-scale internet fraud schemes that are believed to exploiting trafficked workers to swindle people around the world.
This industry has flourished in the past few years, particularly in parts of Myanmar and Cambodia where hundreds of thousands have been deceived by fraudulent employment offers and then coerced to carry out internet scams, 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, targeting over a hundred individuals associated with the so-called organization, which the United Kingdom also sanctioned.
Those targeted comprise the leader of the alleged network, the accused figure, as well as more than a dozen persons linked with his business operations throughout Southeast Asia and Pacific regions.
What is the Alleged Syndicate and the Identity of Chen Zhi?
According to official statements, Chen Zhi, thirty-eight, also known as “Vincent”, is the founder and chairman of the so-called conglomerate (the group), a multinational business conglomerate based in Cambodia which, as per its online presence, is focused on “real estate development, financial services and consumer services”.
On 14 October, American officials stated that the accused, who remains at large, had been indicted for conspiracy to commit fraud and conspiracy to launder money for overseeing Prince Group’s operation of fraud centers using coerced labor across Cambodia.
Chen’s rapid ascent to wealth has gained him significant political influence, including alleged consulting positions to the nation's leader. Chen, born in China in 1987, is thought to have acquired nationality in Vanuatu and Cyprus, and is also a Cambodian national.
Why have the Group Been Penalized?
The US justice department claimed people had been held against their will in the fraudulent operation centers connected to the syndicate and forced to engage in a range of deceptive practices that defrauded massive sums from victims in the United States and worldwide.
As part of the probe into the leader, the US and UK have seized $15bn (£11.3 billion) in cryptocurrency and blocked London assets.
The seized assets are thought to include a £12m residence on Avenue Road, one of the costliest locations in London, a £95m office block on a key financial avenue in the center of the City of London’s financial district, and multiple apartments in central London.
“Now the Federal Bureau of Investigation and partners executed one of the largest financial fraud takedowns in history,” said the bureau's head Kash Patel in a announcement about the actions.
Who else Are Implicated?
According to the US assistant attorney general, the accused was the alleged “chief architect behind a vast digital scam network functioning under the Prince Group umbrella”. He was added to a US sanctions list this October together with over a dozen other individuals suspected of being participating in his business empire.
More than 100 business entities – based in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a blacklist because of suspected connections to the leader.
Impact of the Measures Achieve?
Cambodia’s interior ministry spokesperson told media outlets that the government would cooperate with other countries in the case against the individual.
“We do not protecting persons that violate the law,” the official said. “However, this does not imply that we are accusing the group or its leader of engaging in illegal acts like the allegations made by the US or the UK.”
In spite of the historic set of penalties, experts say the fraud sector is still massive, with the UN calculating in 2023 that about 100,000 people were being compelled to carry out online scams in Cambodia, as well as at least one hundred twenty thousand in the neighboring country and many thousands in Thailand, Laos and the Philippines.
Considering the widespread nature of the enterprise in several Southeast Asian nations, some fear any arrests will create a gap for additional global syndicates to swoop in.
