Who Are Chen Zhi and the Prince Group, Targeted by the United States and United Kingdom of Large-Scale Scam Operations?

The UK and US have imposed sanctions on a global syndicate operating from Southeast Asia, accused of running large-scale online scam operations that are suspected of exploiting trafficked workers to swindle individuals globally.

This industry has flourished in the past few years, especially in certain areas in Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then forced to commit internet scams, including romance scams, often under the threat of torture.

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 targeted comprise the head of the Prince group, Chen Zhi, as well as more than a dozen individuals linked with his business operations throughout Southeast Asia and Pacific regions.

Understanding the Prince Group and the Identity of Chen Zhi?

Based on official statements, Chen Zhi, thirty-eight, also known as “Vincent”, is the leader and establisher of Prince Holding Group (Prince Group), a global corporate entity headquartered in Cambodia which, according to its website, is centered around “real estate development, banking operations and consumer services”.

On October 14, American officials stated that the accused, who is still evading capture, had been charged with conspiracy to commit fraud and money laundering conspiracy for overseeing the group's activities of fraud centers using coerced labor throughout Cambodia.

His swift rise to riches has gained him substantial clout, including alleged consulting positions to Cambodia’s prime minister. The individual, born in China in 1987, is thought to have bought citizenship in Cyprus and Vanuatu, and is also a Cambodian national.

Why have They Been Penalized?

The US justice department claimed people had been forcibly detained in the fraudulent operation centers connected to the syndicate and made to participate in a range of deceptive practices that stole billions of dollars from targets in the United States and globally.

As part of the probe into Chen, the US and UK have confiscated $15bn (£11.3 billion) in cryptocurrency and frozen properties in London.

The seized assets are believed to comprise a £12 million residence on Avenue Road, one of London’s most expensive addresses, a £95m office block 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 executed one of the biggest crackdowns on fraud in recorded time,” said the bureau's head the official in a statement about the actions.

Who else Is Involved?

Based on the senior justice official, Chen was the supposed “mastermind behind a vast digital scam network operating under the Prince Group umbrella”. He was added to a US sanctions list this month alongside over a dozen additional persons suspected of being involved in his business empire.

More than 100 corporate bodies – based in multiple Asian jurisdictions and more – were also added to a blacklist because of alleged links to Chen.

What will the Measures Do?

Cambodia’s interior ministry spokesperson told news agencies that the government would cooperate with other countries in the legal proceeding against the individual.

“We do not shielding individuals that violate the law,” he said. “But it does not mean that we blame the group or its leader of committing crimes similar to the allegations made by the United States or UK.”

Despite the unprecedented tranche of sanctions, analysts say the scam industry is still massive, with the UN estimating in 2023 that about 100,000 people were being forced to carry out online scams in the nation, as well as at least one hundred twenty thousand in the neighboring country and many thousands in other Southeast Asian states.

Considering the widespread nature of the enterprise in multiple Southeast Asian nations, some worry any arrests will create a gap for other transnational groups to swoop in.