US and UK impose sanctions on significant cryptocurrency scam network operating in Southeast Asia.
The United States and the United Kingdom have taken significant measures against a Southeast Asia-based multinational crime network, primarily known for operating “scam centres” in Cambodia, Myanmar, and the broader region. This network, which has been exploiting trafficked workers to engage in fraudulent activities, primarily involves bogus cryptocurrency investments targeting victims globally.
On a recent Tuesday, the US Treasury Department announced what it characterized as the most extensive enforcement action to date in Southeast Asia. This initiative specifically targets 146 individuals connected to the Prince Group, an organization based in Cambodia that has been designated a transnational criminal entity.
In a parallel move, the UK imposed sanctions on six entities and individuals associated with the Prince Group, resulting in the freezing of 19 properties in London. These properties hold a collective value exceeding 100 million pounds (approximately 4 million), underscoring the financial implications of the network’s operations.
US Attorney General Pam Bondi heralded this action as a critical step in the fight against the global issues of human trafficking and cyber-enabled financial fraud. Meanwhile, federal prosecutors in the US unveiled an indictment against Chen Zhi, the 37-year-old chair of the Prince Group, accusing him of conspiracy to commit wire fraud and money laundering. Chen, who reportedly remains at large, could face up to 40 years in prison if convicted.
Additionally, the US Justice Department has initiated what is described as the most substantial forfeiture action in its history, seizing Bitcoin with a current value surpassing billion.
The network has been implicated in conducting “pig-butchering” scams, where trafficked individuals deceive targets into entering false romantic relationships and subsequently encourage them to invest significant amounts of money into fraudulent cryptocurrency platforms.
The financial gains from these illicit activities reportedly funded a lifestyle characterized by opulence, including luxury yachts, private jets, and high-end real estate, such as a Picasso painting purchased at a prestigious New York auction.
Since around 2015, the Prince Group has purportedly masqueraded as a legitimate business, operating across more than 30 countries in sectors such as real estate and financial services. Prosecutors allege that Chen and other executives employed political connections and bribery, primarily within Cambodia, to sustain their operations.
Experts assert that while these indictments and sanctions may not dismantle these networks immediately, they fundamentally alter the risk landscape for global investments associated with Cambodia’s elite.
The British Foreign Minister, Yvette Cooper, highlighted the deleterious effects of such fraud networks, emphasizing their role in enriching themselves at the expense of vulnerable individuals worldwide. The United Nations has estimated that around 100,000 individuals are currently compelled to participate in online scams in Cambodia alone, with thousands more across Myanmar and other Southeast Asian nations.
This comprehensive crackdown addresses a pressing concern that reflects the growing criminal exploitation in the region while promoting awareness of the need for protective measures for individuals working against the backdrop of such networks.
#WorldNews #MiddleEastNews
