US and UK Join Forces in Massive Crackdown Against Gambling-Linked Cyber Scam

In one of the biggest financial crackdowns in recent history, US and UK authorities launched a coordinated strike against a massive criminal organization allegedly involved in running cryptocurrency scams and forced labour operations across Asia. Investigations linked the suspects to casinos and other gambling operations that 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 network that 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 compounds throughout 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” with thousands 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 the freezing of the assets associated 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 International had previously linked Prince Group’s affiliates to compounds in Cambodia where trafficked workers endured violence and abysmal living conditions. Most victims were foreign nationals who came to the country seeking legitimate jobs and then were forced to participate in 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 to continue their joint investigations targeting 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.