Chen Zhi is charged with orchestrating an extensive cyber-fraud scheme. As the alleged mastermind of this enormous criminal operation, he supposedly directed the nefarious stuff is done through his multi-national Conglomerate, the Prince Group. Chen Zhi charged in New York with wire-fraud conspiracy and money laundering. Due to the sheer size and scope of his operations, his actions raised the ire of law enforcement agencies on both sides of the Atlantic Ocean.
Through these actions, the Prince Group has been linked to the construction and operation of at least ten Cambodia scam compounds. These data centers allegedly served as vital nodes in organizing complicated online fraud. Chen Zhi’s network was accused of trafficking workers, imprisoning them in prison-like conditions. Victims were made to carry out scams that stole billions from thousands of people across the globe, resulting in life-altering financial devastation for most.
According to reporting from The Post, Chen Zhi’s company has purchased or stolen millions of mobile phone numbers. They established “phone farms” to help automate their call center scams. This complicated scheme helped the network orchestrate the sham company operation of controlling about 76,000 social media accounts – spreading their fraudulent influence even wider. Oops… looks like this article is only available to subscribers. Before we get there, prosecutors say this operation seized one of the largest piles of cash in history — and it’s the largest seizure of bitcoin ever — around 127,271 bitcoin.
Chen Zhi’s operation was more than illegal logging. It further included using proceeds of crime to buy fancy and expensive things. Those allegations include enjoying opulent travel and entertainment on the network’s dime. They even purchased luxury goods, such as a Picasso painting, bought from a New York City auction house. On top of this, Chen Zhi’s group owns 19 residential properties in London, with one worth close to £100 million ($133 million).
Chen Zhi’s network crackdown was the first example of this coordinated law enforcement response between US and UK authorities. This joint operation led to the imposition of sanctions against his businesses and the removal of the infrastructure that supported this criminal enterprise. As UK Labour Party Parliamentarian Yvette Cooper said, “Together [the public and tech sector] hold the key to improving this collaboration.”
“Together with our US allies, we are taking decisive action to combat the growing transnational threat posed by this network – upholding human rights, protecting British nationals and keeping dirty money off our streets.” – Yvette Cooper
The scale upon which Chen Zhi perpetrated his operation had leave some wondering how cyber fraud affects vulnerable populations. John A Eisenberg characterized the network as a “criminal enterprise built on human suffering,” highlighting the ethical implications of their activities.
If convicted as charged, Chen Zhi faces a maximum penalty of 40 years’ imprisonment. His brazen operations underscore the dark depths of the challenges law enforcement must combat in the increasingly powerful fight against cybercrime. More importantly, they demonstrate the promise of cross-border collaboration to address these challenges head-on.