Who Are the Alleged Leader and the So-Called Crime Network, Targeted by the US and UK of Large-Scale Scam Operations?
The UK and United States have enforced measures on a multinational network based in Southeast Asia, accused of orchestrating large-scale internet fraud schemes that are suspected of exploiting victims of human trafficking to swindle people globally.
This criminal enterprise has flourished in the past few years, particularly in certain areas in Myanmar and Cambodia where countless individuals have been deceived by false job adverts and then coerced to commit internet scams, such as fake relationship schemes, often under the menace of torture.
The United States Treasury stated it had implemented what it called the most significant measure to date in Southeast Asia, targeting 146 people associated with the so-called organization, which the UK also penalized.
Those sanctioned comprise the head of the alleged network, the accused figure, as well as more than a dozen persons connected to his commercial activities throughout south-east Asia and the Pacific.
What is the Alleged Syndicate and Who is Chen Zhi?
Based on official statements, Chen Zhi, 38, also referred to as “Vincent”, is the founder and chairman of the so-called conglomerate (the group), a global corporate entity headquartered in Cambodia which, as per its online presence, is focused on “real estate development, financial services and consumer services”.
On October 14, American officials stated that Chen, who remains at large, had been charged with wire fraud conspiracy and money laundering conspiracy for directing the group's activities of fraud centers using coerced labor across Cambodia.
His swift rise to riches has gained him substantial clout, comprising reported advisory roles to Cambodia’s prime minister. Chen, a native of China from 1987, is thought to have acquired nationality in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Why have the Group Been Penalized?
The Department of Justice alleged people had been held against their will in the fraudulent operation centers linked with the syndicate and made to engage in a range of fraudulent schemes that defrauded billions of dollars from targets in the United States and globally.
As part of the investigation into Chen, the United States and UK have confiscated $15 billion (£11.3 billion) in bitcoin and blocked properties in London.
The frozen properties are believed to comprise a £12 million residence on Avenue Road, one of the costliest locations in London, a £95 million office block on Fenchurch Street in the center of the London's banking area, and several flats in central London.
“Today the Federal Bureau of Investigation and partners carried out one of the largest financial fraud takedowns in history,” said the bureau's head Kash Patel in a statement about the measures.
Other Parties Are Implicated?
According to the US assistant attorney general, the accused was the supposed “mastermind behind a vast cyber-fraud empire operating under the Prince Group umbrella”. He was placed on a US sanctions list this October alongside more than a dozen additional persons suspected of being participating in his commercial network.
Over a hundred business entities – registered in multiple Asian jurisdictions among others – were also placed on a sanctions list because of alleged links to Chen.
What will the Measures Do?
A representative from Cambodia's government told media outlets that the government would cooperate with other countries in the case against Chen.
“We do not shielding persons that break regulations,” he said. “However, this does not imply that we blame the group or its leader of engaging in illegal acts like the claims issued by the United States or UK.”
Despite the unprecedented tranche of sanctions, experts say the fraud sector is still massive, with the UN calculating in 2023 that about a hundred thousand individuals were being forced to execute online scams in Cambodia, as well as at least 120,000 in the neighboring country and tens of thousands in other Southeast Asian states.
Given the widespread nature of the enterprise in several south-east Asian countries, some fear any arrests will create a gap for other transnational groups to take over.
