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How Southeast Asia Became the Scam Capital of the World
How did the online scam industry take root in Southeast Asia, and how did it grow to such massive proportions?
On October 14, the U.S. government announced one of its most significant operations against what it described as a “global scourge of human trafficking and cyber-enabled financial fraud.”
In the action, the U.S. Treasury Department imposed sanctions on 146 individuals and entities connected to the Prince Holding Group, one of the most prominent conglomerates in Cambodia. Designating the group as a “transnational criminal network,” U.S. officials accused Prince of running giant online scamming operations that had defrauded billions from people across the globe.
The U.K. government simultaneously announced its own sanctions on the Cambodian firm. It also froze 19 London properties worth more than 100 million pounds that it had connected to the Prince Group network.
U.S. federal prosecutors also charged Prince Group’s chairman, Chen Zhi, with wire fraud and money laundering connected to online scamming operations. As part of the case, prosecutors seized just under $15 billion in bitcoin linked to Chen. It was the largest asset forfeiture action in U.S. history.
Chen was no ordinary criminal. Chinese by birth, the 38-year-old had arrived in Cambodia in the early 2010s and quickly established connections to the highest reaches of the country’s political and economic elite. Chen received prestigious titles and was appointed a ministerial-level advisor to both former Cambodian Prime Minister Hun Sen and his son and successor Hun Manet.
The Prince Group network is one part of a criminal industry that has sunk deep roots across Southeast Asia. Over the past five years, hundreds of thousands of people have been trafficked by criminal gangs and forced to work in giant online scamming centers that have sprung up in Cambodia, Myanmar, Laos, and other nations. From huge, prison-like compounds, these cyber-slaves have run scams on victims across the globe. The annual losses are estimated in the tens of billions of dollars.
How did the online scam industry take root in Southeast Asia, and how did it grow to such massive proportions?
In this episode of The Diplomat Asia, we discuss the rise of the scam industry, the damage being done around the globe, and efforts to crack down on the criminal networks involved.
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On October 14, the U.S. government announced one of its most significant operations against what it described as a “global scourge of human trafficking and cyber-enabled financial fraud.”
In the action, the U.S. Treasury Department imposed sanctions on 146 individuals and entities connected to the Prince Holding Group, one of the most prominent conglomerates in Cambodia. Designating the group as a “transnational criminal network,” U.S. officials accused Prince of running giant online scamming operations that had defrauded billions from people across the globe.
The U.K. government simultaneously announced its own sanctions on the Cambodian firm. It also froze 19 London properties worth more than 100 million pounds that it had connected to the Prince Group network.
U.S. federal prosecutors also charged Prince Group’s chairman, Chen Zhi, with wire fraud and money laundering connected to online scamming operations. As part of the case, prosecutors seized just under $15 billion in bitcoin linked to Chen. It was the largest asset forfeiture action in U.S. history.
Chen was no ordinary criminal. Chinese by birth, the 38-year-old had arrived in Cambodia in the early 2010s and quickly established connections to the highest reaches of the country’s political and economic elite. Chen received prestigious titles and was appointed a ministerial-level advisor to both former Cambodian Prime Minister Hun Sen and his son and successor Hun Manet.
The Prince Group network is one part of a criminal industry that has sunk deep roots across Southeast Asia. Over the past five years, hundreds of thousands of people have been trafficked by criminal gangs and forced to work in giant online scamming centers that have sprung up in Cambodia, Myanmar, Laos, and other nations. From huge, prison-like compounds, these cyber-slaves have run scams on victims across the globe. The annual losses are estimated in the tens of billions of dollars.
How did the online scam industry take root in Southeast Asia, and how did it grow to such massive proportions?
In this episode of The Diplomat Asia, we discuss the rise of the scam industry, the damage being done around the globe, and efforts to crack down on the criminal networks involved.
