The United States and the United Kingdom have launched significant sanctions targeting a multinational crime network based in Southeast Asia, which has been operating a series of fraudulent “scam centres” in Cambodia and Myanmar. This operation has been utilizing trafficked workers to swindle individuals around the globe through fake cryptocurrency investments.
On Tuesday, the US Treasury Department described its actions as the most extensive operation to date in Southeast Asia, imposing sanctions on 146 individuals linked to the Cambodia-based Prince Group, which has been designated a transnational criminal organization. Concurrently, the UK government imposed sanctions against six entities and individuals affiliated with the Prince Group, subsequently freezing 19 properties in London valued at over £100 million (approximately $134 million) that are connected to the organization.
US Attorney General Pam Bondi stated that this action represents one of the most significant efforts against human trafficking and cyber-enabled financial fraud worldwide. The US Justice Department has also unveiled an indictment against Chen Zhi, a 37-year-old tycoon and chair of the Prince Group, charging him with conspiracy involving wire fraud and money laundering. Chen, also known as Vincent, is currently at large and faces up to 40 years in prison if convicted.
In what is reportedly the largest forfeiture action in the department’s history, the US has seized Bitcoin valued at over $14 billion. Assistant Attorney General John Eisenberg described Chen as the “mastermind behind a sprawling cyber fraud empire,” while US Attorney Joseph Nocella elaborated that the operation is amongst the most extensive investment fraud schemes ever recorded.
The Prince Group is accused of managing a network of purpose-built scam centres functioning as forced labor camps throughout Cambodia, Myanmar, and other countries. Many workers, primarily from China, were enticed through deceptive job postings. Once recruited, they were held against their will and coerced into perpetrating online fraud against victims across the world, often utilizing manipulative tactics, including fake romantic relationships to lure targets into investing substantial sums in fraudulent cryptocurrency platforms.
The laundered funds from these scams have reportedly been funneled into the Prince Group’s gambling and cryptocurrency mining operations, financing extravagant purchases such as yachts, private jets, and real estate, including a Picasso painting acquired at a New York auction. Prosecutors have indicated that Chen once boasted about the operation pulling in daily profits of $30 million.
Operating since around 2015, the Prince Group has functioned in more than 30 countries under the facade of legitimate enterprises, offering real estate, financial services, and consumer goods. Reports suggest that Chen and his associates employed political leverage and bribery across several nations to safeguard their operations.
Jacob Daniel Sims, a transnational crime expert at Harvard University, commented that the Prince Group is an integral part of the infrastructure supporting global cybercrime. He noted that Chen’s connections with Cambodia’s ruling elite, including advisers to Prime Minister Hun Manet and former Prime Minister Hun Sen, have reinforced his standing within the criminal economy.
While the recent sanctions and indictment may not immediately dismantle the crime network, they are poised to alter the risk landscape for global financial institutions and investors considering engagement with Cambodian elites. UK’s Foreign Minister Yvette Cooper criticized the network for its exploitation of vulnerable individuals while simultaneously acquiring assets in London.
According to a 2023 United Nations estimate, around 100,000 individuals are currently forced to engage in online scams in Cambodia, with additional figures indicating at least 120,000 in Myanmar and tens of thousands more in neighboring countries such as Thailand, Laos, and the Philippines. Recent reports have also pointed to East Timor emerging as a new hotspot for such fraudulent activities.
