The U.S. and U.K. governments have launched significant actions against cybercriminals operating in Southeast Asia, targeting online scams and money laundering activities linked to a transnational criminal organization.
U.S. and U.K. Actions Against Southeast Asian Cybercriminals
On October 3, 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) coordinated closely with the U.K.’s Foreign, Commonwealth, and Development Office (FCDO) to impose sanctions aimed at dismantling malicious networks threatening citizens of the United States and allied nations.
Targeting the Prince Group TCO
The OFAC designated 146 entities associated with the Prince Group Transnational Criminal Organization (Prince Group TCO). This network, operating primarily from Cambodia under the leadership of Chen Zhi, has exploited online scams, particularly investment frauds, targeting Americans and international victims.
In conjunction with this action, FinCEN implemented a final rule severing Huione Group from the U.S. financial system. This modification marks a significant strategy against the laundering of funds generated from scams.
Financial Impact of Cyber Fraud
Research indicates that U.S. citizens lost over $16.6 billion to online scams in 2024, with nearly $10 billion attributed specifically to Southeast Asian operations. The latest estimate reflects a 66% increase in losses compared to the previous year, emphasizing the severity of the online scam epidemic.
Criminal Indictments and Underlying Operations
The coordinated crackdown includes a recently unsealed criminal indictment against Chen Zhi in the U.S. District Court for the Eastern District of New York. This appearance in the legal framework highlights the ongoing collaboration between law enforcement agencies in both the U.S. and the U.K.
- Criminal Activities: The Prince Group TCO has been involved in a variety of online scams, such as “pig butchering,” as well as human trafficking, extortion, and other organized crimes.
- Financial Crimes: Huione Group has allegedly laundered at least $4 billion from various cyber heists and scams.
Sanctions and Future Implications
As a result of these sanctions, all property and interests of the designated individuals and entities within the U.S. or held by U.S. persons are to be blocked. The OFAC regulations strictly prohibit transactions involving these designated individuals unless authorized by a specific license.
These concerted actions by the U.S. and U.K. underline a robust commitment to combating cybercrime and protecting citizens from the damaging impact of transnational fraud and organized crime.
