What Are the Alleged Leader and the Prince Group, Targeted by the US and UK of Massive Fraudulent Schemes?
The United Kingdom and United States have imposed sanctions on a global syndicate operating from south-east Asia, allegedly running extensive online scam operations that are suspected of exploiting trafficked workers to swindle people around the world.
This industry has flourished in the past few years, especially in parts of Myanmar and Cambodia where countless individuals have been deceived by fraudulent employment offers and then forced to commit internet scams, such as fake relationship schemes, sometimes under the threat of physical harm.
The United States Treasury stated it had taken what it described as the largest action ever in Southeast Asia, targeting 146 people connected to the so-called organization, which the UK also sanctioned.
Those sanctioned comprise the leader of the Prince group, Chen Zhi, as well as numerous persons connected to his commercial activities throughout Southeast Asia and Pacific regions.
Understanding the Prince Group and Who is Chen Zhi?
According to authoritative sources, Chen Zhi, 38, also referred to as “the alias”, is the founder and chairman of Prince Holding Group (the group), a multinational business conglomerate based in the Southeast Asian nation which, as per its online presence, is centered around “property investment, financial services and consumer services”.
On October 14, American officials stated that Chen, who is still evading capture, had been indicted for conspiracy to commit fraud and money laundering conspiracy for directing Prince Group’s operation of forced labour scam compounds throughout Cambodia.
His swift rise to riches has won him significant political influence, including alleged consulting positions to the nation's leader. Chen, a native of China from 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have They Been Sanctioned?
The Department of Justice alleged people had been held against their will in the fraudulent operation centers connected to the group and forced to participate in a range of deceptive practices that defrauded massive sums from targets in the United States and globally.
As part of the investigation into the leader, the United States and UK have seized $15 billion (£11.3bn) in bitcoin and frozen properties in London.
The seized assets are believed to comprise a £12 million residence on a prestigious street, one of the costliest locations in London, a £95m office block on a key financial avenue in the center of the London's banking area, and several flats in downtown London.
“Today the FBI and allies carried out one of the biggest crackdowns on fraud in recorded time,” said FBI director Kash Patel in a statement about the measures.
Other Parties Are Implicated?
Based on the senior justice official, Chen was the supposed “mastermind behind a sprawling digital scam network functioning under the Prince Group umbrella”. He was placed on a US sanctions list this October together with over a dozen additional persons suspected of being participating in his commercial network.
Over a hundred business entities – registered in multiple Asian jurisdictions and more – were also added to a sanctions list because of alleged links to the leader.
What will the Sanctions Achieve?
Cambodia’s interior ministry spokesperson told news agencies that the authorities would work together with other countries in the case against the individual.
“We do not protecting individuals that violate the law,” the official said. “However, this does not imply that we blame Prince Group or Chen Zhi of committing crimes like the allegations made by the United States or UK.”
In spite of the unprecedented tranche of sanctions, experts say the fraud sector is still massive, with the United Nations calculating in 2023 that about 100,000 people were being compelled to carry out internet fraud in the nation, as well as at least 120,000 in Myanmar and tens of thousands in other Southeast Asian states.
Considering the prevalence of the industry in several south-east Asian countries, some fear any arrests will leave a vacuum for additional global syndicates to swoop in.
