Who Are Chen Zhi and the Prince Group, Targeted by the US and UK of Large-Scale Fraudulent Schemes?

The United Kingdom and United States have enforced measures on a global syndicate operating from Southeast Asia, accused of orchestrating large-scale online scam operations that are believed to exploiting victims of human trafficking to swindle individuals globally.

This criminal enterprise has flourished in the past few years, especially in certain areas in Myanmar and Cambodia where countless individuals have been duped by false job adverts and then coerced to carry out online fraud, including fake relationship schemes, sometimes under the threat of physical harm.

The United States Treasury stated it had implemented what it called the most significant measure to date in south-east Asia, focusing on over a hundred individuals associated with the Prince Group, which the UK also penalized.

Those sanctioned include the head of the alleged network, the accused figure, as well as numerous persons linked with his commercial activities across south-east Asia and the Pacific.

What is the Prince Group and the Identity of Chen Zhi?

According to official statements, the individual in question, 38, also known as “the alias”, is the founder and chairman of the so-called conglomerate (the group), a global corporate entity headquartered in the Southeast Asian nation which, according to its website, is focused on “property investment, banking operations and consumer services”.

On October 14, US authorities stated that Chen, who is still evading capture, had been indicted for wire fraud conspiracy and money laundering conspiracy for directing 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 reported advisory roles to the nation's leader. The individual, born in China in 1987, is believed to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.

Why have They Been Sanctioned?

The US justice department claimed people had been forcibly detained in the scam compounds connected to the syndicate and made to engage in a variety of deceptive practices that stole massive sums from targets in the US and globally.

As part of the probe into the leader, the US and UK have confiscated $15 billion (£11.3 billion) in bitcoin and blocked properties in London.

The seized assets are believed to comprise a £12m residence 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 London's banking area, and several flats in downtown London.

“Now the Federal Bureau of Investigation and allies executed one of the biggest crackdowns on fraud in recorded time,” said FBI director the official in a announcement about the measures.

Other Parties Is Involved?

According to the senior justice official, Chen was the alleged “mastermind behind a vast digital scam network functioning under the Prince Group umbrella”. He was added to a American blacklist this October alongside more than a dozen other individuals suspected of being participating in his business empire.

Over a hundred corporate bodies – based in multiple Asian jurisdictions and more – were also added to a blacklist because of suspected connections to Chen.

What will the Sanctions Achieve?

A representative from Cambodia's government told news agencies that the government would work together with other countries in the legal proceeding against Chen.

“We do not shielding individuals that violate the law,” the official said. “However, this does not imply that we blame Prince Group or Chen Zhi of engaging in illegal acts similar to the claims issued by the United States or UK.”

In spite of the historic set of penalties, experts say the fraud sector is still massive, with the UN estimating in recent years that about 100,000 people were being compelled to execute internet fraud in the nation, as well as at least 120,000 in the neighboring country and many thousands in Thailand, Laos and the Philippines.

Considering the widespread nature of the enterprise in multiple south-east Asian countries, some fear any arrests will create a gap for other transnational groups to swoop in.