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

The United Kingdom and United States have imposed sanctions on a global syndicate based in Southeast Asia, allegedly orchestrating extensive online scam operations that are suspected of using trafficked workers to defraud people globally.

This industry has flourished in recent years, especially in certain areas in Cambodia and Myanmar where countless individuals have been duped by false job adverts and then forced to commit internet scams, such as romance scams, often under the threat of torture.

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

Those targeted comprise the head of the Prince group, the accused figure, as well as more than a dozen persons linked with his business operations across Southeast Asia and Pacific regions.

What is the Alleged Syndicate and Who is Chen Zhi?

According to authoritative sources, Chen Zhi, thirty-eight, also referred to as “the alias”, is the founder and chairman of the so-called conglomerate (Prince Group), a multinational business conglomerate headquartered in the Southeast Asian nation which, as per its online presence, is centered around “real estate development, banking operations and consumer services”.

On 14 October, American officials stated that Chen, who is still evading capture, had been indicted for conspiracy to commit fraud and conspiracy to launder money for overseeing Prince Group’s operation of fraud centers using coerced labor across the country.

Chen’s rapid ascent to wealth has won him substantial clout, including alleged consulting positions to Cambodia’s prime minister. The individual, a native of China from 1987, is thought to have acquired nationality in Cyprus and Vanuatu, and is also a citizen of Cambodia.

Why have They Been Penalized?

The Department of Justice alleged individuals had been forcibly detained in the scam compounds linked with the syndicate and forced to engage in a variety of deceptive practices that stole billions of dollars from targets in the United States 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 £12 million mansion on a prestigious street, one of London’s most expensive addresses, a £95 million office block on a key financial avenue in the center of the City of London’s financial district, and multiple apartments 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 measures.

Other Parties Is Involved?

According to the senior justice official, the accused was the alleged “chief architect behind a vast cyber-fraud empire operating under the Prince Group umbrella”. He was placed on a US sanctions list this October together with more than a dozen other individuals believed to be participating in his business empire.

Over a hundred business entities – based in Cambodia, Singapore, Hong Kong and Taiwan and more – were also placed on a sanctions list because of suspected connections to the leader.

What will the Sanctions Do?

Cambodia’s interior ministry spokesperson told news agencies that the authorities would cooperate with foreign nations in the legal proceeding against the individual.

“We do not shielding individuals that violate the law,” the official said. “However, this does not imply that we blame the group or its leader of committing crimes similar to the allegations made by the US or the UK.”

Despite the historic set of penalties, experts say the fraud sector is still massive, with the UN calculating in 2023 that about 100,000 people were being forced to carry out online scams in Cambodia, as well as at least 120,000 in the neighboring country and many thousands in Thailand, Laos and the Philippines.

Given the prevalence of the industry in several south-east Asian countries, certain worry any arrests will leave a vacuum for other transnational groups to take over.