What Is Chen Zhi and the Prince Group, Accused by the United States and United Kingdom of Large-Scale Scam Operations?
The UK and US have imposed sanctions on a global syndicate based in Southeast Asia, allegedly orchestrating large-scale online scam operations that are believed to using trafficked workers to defraud people around the world.
This criminal enterprise has flourished in the past few years, particularly in certain areas in Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then coerced to carry out internet scams, such as romance scams, often under the menace of torture.
The United States Treasury stated it had taken what it called the largest action ever in south-east Asia, focusing on over a hundred individuals associated with the Prince Group, which the United Kingdom also penalized.
Those sanctioned comprise the leader of the Prince group, the accused figure, as well as more than a dozen persons connected to his business operations throughout south-east Asia and the Pacific.
Understanding the Alleged Syndicate and Who is Chen Zhi?
Based on authoritative sources, the individual in question, 38, also referred to as “Vincent”, is the leader and establisher of the so-called conglomerate (Prince Group), a global corporate entity based in Cambodia which, as per its online presence, is centered around “property investment, banking operations and consumer services”.
On 14 October, US authorities stated that the accused, who remains at large, had been indicted for conspiracy to commit fraud and money laundering conspiracy for directing Prince Group’s operation of fraud centers using coerced labor across Cambodia.
His swift rise to riches has won him significant political influence, comprising reported advisory roles to Cambodia’s prime minister. Chen, born in China in 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Reasons Behind the Group Been Penalized?
The US justice department claimed individuals had been held against their will in the fraudulent operation centers connected to the group and made to participate in a variety of deceptive practices that stole billions of dollars from targets in the US and globally.
As part of the investigation into the leader, the United States and UK have confiscated $15bn (£11.3 billion) in bitcoin and blocked properties in London.
The seized assets are thought to include a £12m mansion on a prestigious street, one of London’s most expensive addresses, a £95 million commercial building on Fenchurch Street in the center of the City of London’s financial district, and several flats in downtown London.
“Now the Federal Bureau of Investigation and partners carried out one of the largest financial fraud takedowns in recorded time,” said the bureau's head Kash Patel in a announcement about the measures.
Other Parties Is Involved?
Based on the US assistant attorney general, Chen was the alleged “chief architect behind a sprawling cyber-fraud empire operating under the Prince Group umbrella”. He was added to a US sanctions list this October alongside over a dozen other individuals believed to be involved in his business empire.
Over a hundred corporate bodies – based in multiple Asian jurisdictions and more – were also added to a sanctions list because of alleged links to Chen.
What will the Measures Achieve?
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 shielding persons that break regulations,” he said. “However, this does not imply 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 historic set of penalties, analysts say the fraud sector is still massive, with the United Nations estimating in 2023 that about a hundred thousand individuals were being compelled to execute internet fraud in Cambodia, as well as at least 120,000 in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Given the prevalence of the enterprise in multiple south-east Asian countries, some fear any apprehensions will create a gap for additional global syndicates to take over.