What Is Chen Zhi and the So-Called Crime Network, Accused by the United States and United Kingdom of Massive Fraudulent Schemes?
The UK and United States have enforced measures on a global syndicate operating from Southeast Asia, accused of running large-scale internet fraud schemes that are suspected of exploiting victims of human trafficking to swindle people globally.
This industry has flourished in the past few years, especially in certain areas in Cambodia and Myanmar where countless individuals have been deceived by false job adverts and then coerced to commit online fraud, including romance scams, sometimes under the menace of physical harm.
The US treasury department stated it had taken what it called the largest action ever in south-east Asia, focusing on 146 people connected to the so-called organization, which the United Kingdom also penalized.
Those sanctioned include the head of the alleged network, the accused figure, as well as more than a dozen individuals linked with his business operations across Southeast Asia and Pacific regions.
What is the Alleged Syndicate and the Identity of Chen Zhi?
Based on official statements, the individual in question, 38, also known as “the alias”, is the leader and establisher of the so-called conglomerate (the group), a global corporate entity headquartered in the Southeast Asian nation which, as per its online presence, is centered around “real estate development, banking operations and retail offerings”.
On October 14, American officials stated that the accused, who remains at large, had been indicted for wire fraud conspiracy and conspiracy to launder money for overseeing Prince Group’s operation of forced labour scam compounds across Cambodia.
His swift rise to riches has won him significant political influence, comprising reported advisory roles to Cambodia’s prime minister. The individual, born in China in 1987, is thought to have acquired nationality in Vanuatu and Cyprus, and is also a Cambodian national.
Reasons Behind They Been Sanctioned?
The US justice department claimed people had been held against their will in the fraudulent operation centers linked with the syndicate and made to participate 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 $15bn (£11.3bn) in cryptocurrency and frozen properties in London.
The seized assets are thought to include a £12 million mansion on a prestigious street, one of London’s most expensive addresses, a £95 million commercial building on a key financial avenue in the heart of the City of London’s financial district, and several flats in downtown London.
“Today the Federal Bureau of Investigation and allies executed one of the largest financial fraud takedowns in recorded time,” said the bureau's head Kash Patel in a statement about the measures.
Who else Are Implicated?
Based on the senior justice official, the accused was the alleged “mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella”. He was added to a American blacklist this month alongside more than a dozen additional persons 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 placed on a sanctions list because of alleged links to Chen.
Impact of the Sanctions Achieve?
Cambodia’s interior ministry spokesperson told news agencies that the authorities would work together with other countries in the legal proceeding against Chen.
“We are not shielding individuals that break regulations,” the official said. “However, this does not imply that we are accusing the group or its leader of committing crimes similar to the allegations issued by the US or the UK.”
Despite the historic set of penalties, analysts say the fraud sector is still enormous, with the UN calculating in recent years that about 100,000 people were being compelled to execute online scams in the nation, as well as at least 120,000 in Myanmar and many thousands in other Southeast Asian states.
Given the prevalence of the enterprise in several south-east Asian countries, some worry any apprehensions will create a gap for additional global syndicates to take over.
