US and UK Join Forces in Massive Crackdown Against Gambling

The two nations targeted a sprawling criminal network that reportedly used casinos and other gambling enterprises to launder stolen fundsImage Source: Shutterstock.com

In one of the biggest financial crackdowns in recent history, US and UK authorities launched acoordinated strikeagainst a massive criminal organization allegedly involved in running cryptocurrency scams andforced labouroperations across Asia. Investigations linked the suspects to casinos and other gambling operationsthat were reportedly used to launder criminal proceeds.

Scam Centers Reportedly Used Trafficked Labor

US prosecutors have announced charges against Chen Zhi, a Cambodian and UK citizen who established the Prince Group, a sprawling financial empire with interests in property, finance, and leisure. The Department of Justice (DOJ) alleges that Chen’s businesses were a front for a global cyber-fraud networkthat lured victims through online investment schemes and then funneled stolen funds through casinos and shell companies.

As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions.

Joseph Nocella, US Attorney Jr. for the Eastern District of New York

The high-level collaboration between the two nations resulted in the seizure of more than $14 billion worth of bitcoin, the largest single cryptocurrency confiscation by the US government. The DOJ described Zhi’s operation as a “sprawling cyber-fraud empire built on human suffering” and claimed that Chen’s organization was running several scam compoundsthroughout Cambodia.

Court documents reveal that trafficked workers were detained in heavily guarded facilities and forced to carry out online scams targeting victims worldwide. Investigators note that such scam hubs often operate under the guise of legitimate online gambling or financial operations. They contain “phone farms” withthousands of mobile devices,  each running dozens of fake social media accounts to deceive victims.

Chen Could Face Decades Behind Bars

Tuesday’s joint sanctions also placed restrictions on companies affiliated with the Prince Group network, like Jin Bei Group, Golden Fortune Resorts World, and Byex Exchange. Moreover, the UK government has announced thefreezing of the assetsassociated with Chen and his partners. According to US court filings, Chen and his associates used their illicit gains for luxury travel, rare artwork, and extravagant purchases.

Amnesty Internationalhad previously linked Prince Group’s affiliates to compounds in Cambodia where trafficked workers enduredviolence and abysmal living conditions. Most victims were foreign nationals who came to the country seeking legitimate jobs and then were forced to participatein scams under threat of violence.

If convicted, Chen could face up to 40 years in prison. Meanwhile, the US and UK governments have confirmed that they plan tocontinue their joint investigationstargeting transnational fraud. As criminals increasingly rely on cryptocurrency and other high-tech methods to obscure their operations, authorities urged any individuals with relevant information to report suspicious activities.