Berliner Boersenzeitung - 'Sever the chain': scam tycoons in China's crosshairs

EUR -
AED 4.391885
AFN 77.73245
ALL 96.680737
AMD 453.362804
ANG 2.140727
AOA 1096.625236
ARS 1729.226144
AUD 1.698812
AWG 2.154085
AZN 2.028889
BAM 1.957435
BBD 2.408311
BDT 146.112017
BGN 2.008331
BHD 0.450835
BIF 3542.258106
BMD 1.195884
BND 1.512663
BOB 8.261899
BRL 6.222752
BSD 1.195699
BTN 110.012871
BWP 15.593022
BYN 3.377721
BYR 23439.31995
BZD 2.404808
CAD 1.616404
CDF 2678.779488
CHF 0.916645
CLF 0.02601
CLP 1027.371699
CNY 8.316952
CNH 8.30659
COP 4383.248501
CRC 591.594034
CUC 1.195884
CUP 31.690917
CVE 110.357158
CZK 24.337307
DJF 212.927814
DKK 7.465781
DOP 75.122734
DZD 154.53088
EGP 55.993597
ERN 17.938255
ETB 186.006132
FJD 2.620901
FKP 0.867735
GBP 0.86622
GEL 3.22287
GGP 0.867735
GHS 13.062909
GIP 0.867735
GMD 87.299208
GNF 10492.762405
GTQ 9.174662
GYD 250.158905
HKD 9.333932
HNL 31.555352
HRK 7.530596
HTG 156.730884
HUF 381.486376
IDR 20081.278602
ILS 3.694441
IMP 0.867735
INR 110.038016
IQD 1566.408092
IRR 50376.599827
ISK 145.000561
JEP 0.867735
JMD 187.616677
JOD 0.847875
JPY 183.172901
KES 154.269291
KGS 104.579962
KHR 4809.015963
KMF 492.703782
KPW 1076.375603
KRW 1714.681599
KWD 0.366466
KYD 0.996432
KZT 600.661607
LAK 25720.478924
LBP 107075.918068
LKR 369.948941
LRD 221.204726
LSL 18.865955
LTL 3.531133
LVL 0.723378
LYD 7.511273
MAD 10.828142
MDL 20.111795
MGA 5344.46311
MKD 61.626944
MMK 2511.849432
MNT 4265.588281
MOP 9.613128
MRU 47.696831
MUR 53.99394
MVR 18.48828
MWK 2073.331419
MXN 20.609949
MYR 4.696829
MZN 76.249441
NAD 18.865955
NGN 1660.173487
NIO 44.00675
NOK 11.406572
NPR 176.020993
NZD 1.972706
OMR 0.459806
PAB 1.195699
PEN 3.998739
PGK 5.196339
PHP 70.554756
PKR 334.470313
PLN 4.210192
PYG 8023.700515
QAR 4.35884
RON 5.096258
RSD 117.415452
RUB 89.975943
RWF 1744.556863
SAR 4.485257
SBD 9.659961
SCR 16.576912
SDG 719.323943
SEK 10.557477
SGD 1.512865
SHP 0.897222
SLE 29.059164
SLL 25077.081761
SOS 682.169673
SRD 45.447765
STD 24752.377509
STN 24.520477
SVC 10.462737
SYP 13225.965024
SZL 18.85975
THB 37.468206
TJS 11.167926
TMT 4.185593
TND 3.42426
TOP 2.879401
TRY 51.931491
TTD 8.115777
TWD 37.562108
TZS 3067.441821
UAH 51.173434
UGX 4253.5521
USD 1.195884
UYU 45.247786
UZS 14550.150691
VES 428.695774
VND 31092.975444
VUV 142.990644
WST 3.24899
XAF 656.505241
XAG 0.010167
XAU 0.00022
XCD 3.231936
XCG 2.155
XDR 0.815622
XOF 656.505241
XPF 119.331742
YER 285.109995
ZAR 18.86427
ZMK 10764.390235
ZMW 23.644745
ZWL 385.074054
  • RBGPF

    0.0000

    82.4

    0%

  • SCS

    0.0200

    16.14

    +0.12%

  • BTI

    0.0100

    60.17

    +0.02%

  • CMSC

    -0.0250

    23.675

    -0.11%

  • AZN

    -0.2700

    92.95

    -0.29%

  • RELX

    -1.1100

    36.27

    -3.06%

  • GSK

    0.8250

    50.925

    +1.62%

  • NGG

    0.1950

    84.875

    +0.23%

  • RIO

    0.7300

    94.1

    +0.78%

  • CMSD

    0.0142

    24.065

    +0.06%

  • BP

    0.4500

    38.15

    +1.18%

  • RYCEF

    -0.1700

    16.43

    -1.03%

  • BCE

    0.2650

    25.535

    +1.04%

  • JRI

    0.0550

    13.045

    +0.42%

  • VOD

    0.0400

    14.61

    +0.27%

  • BCC

    -0.6200

    80.23

    -0.77%

'Sever the chain': scam tycoons in China's crosshairs
'Sever the chain': scam tycoons in China's crosshairs / Photo: Handout - CHINA'S MINISTRY OF PUBLIC SECURITY/AFP

'Sever the chain': scam tycoons in China's crosshairs

China is moving against the cyberscam tycoons making fortunes in Southeast Asia, driven by mounting public pressure and Beijing's desire to keep control of judicial processes, analysts say.

Text size:

Across Southeast Asia, scammers lure internet users globally into fake romantic relationships and cryptocurrency investments.

Initially largely targeting Chinese speakers -- from whom they have extracted billions, prompting rising public anger -- the scammers have expanded their operations into multiple languages to steal vast sums from victims around the world.

Those conducting the scams are sometimes willing volunteers, sometimes trafficked foreign nationals who have been trapped and forced to work under threat of torture.

Last year, a series of crackdowns largely driven by Beijing -- which wields significant economic and diplomatic influence in the region -- saw thousands of workers released from scam centres in Myanmar and Cambodia and repatriated to their home countries, many of them to China.

Now Beijing has turned its focus to the bosses at the apex of the criminal pyramids, netting its biggest player so far with the arrest and extradition of Chen Zhi from Cambodia this week.

The arrests were "almost certainly a result of Chinese pressure... coordinated behind closed doors", according to Jason Tower, senior expert at the Global Initiative Against Transnational Organized Crime.

Chen, a Chinese-born businessman, was indicted in October by US authorities, who said his Prince Group conglomerate was a cover for a "sprawling cyber-fraud empire".

Phnom Penh said it detained him following a request from Beijing, and after "several months of joint investigative cooperation" with Chinese authorities.

Analysts say Phnom Penh's inaction became intolerable to Beijing, which also wanted to avoid the embarrassment of Chen going on trial in the US.

Jacob Sims, a transnational crime expert and visiting fellow at Harvard University's Asia Center, added that Chen "has a number of reported ties to Chinese government officials".

"China acted in order to prevent him from being extradited to the US given the political sensitivities," he told AFP.

- 'Cut off the flow' -

Beijing made a show of the tycoon's extradition, with video released by China's public security ministry on Thursday showing the 38-year-old in handcuffs with a black bag over his head being escorted off a plane with black-clad armed security forces waiting on the runway.

The sudden extradition of Chen from Cambodia –- where he had close ties to political elites before his naturalised citizenship was revoked by the Southeast Asian nation last month –- follows China scooping up other wanted fugitives abroad to mete out justice on its own soil.

In November, She Zhijiang -- the Chinese-born founder of Yatai Group, which allegedly built a notorious scam hub on the Thai-Myanmar border –- boarded a flight to China in handcuffs after spending three years behind bars in Bangkok.

The same month Beijing held talks with law enforcement agencies from Thailand, Myanmar, Cambodia, Laos and Vietnam agreeing to "intensify joint efforts against transnational telecom and online fraud".

China earlier publicly handed down death sentences to over a dozen members of powerful gang families with fraud operations in northern Myanmar, with their confessions of grisly crimes broadcast on national television.

There could be more high-profile arrests to come: weeks ago the public security ministry issued arrest warrants for 100 more fugitives seen as the scam industry's key financial backers, pledging Thursday to "cut off the flow", "pull out the nails", and "sever the chain".

But while the alleged leaders of some major scam groups have been arrested, Sims said the status quo for the wider industry was unlikely to change without sustained and "extremely high" pressure from the international community.

"The vast majority of Cambodia's hundreds of scam compounds are operating with strong support from the Cambodian government," he said.

Cambodian officials deny allegations of government involvement and say authorities are cracking down. Authorities had said in July that the tally of arrests had already reached 2,000.

While in prison, She Zhijiang claimed to have previously acted as a spy for Beijing's intelligence agency before he and his Myanmar urban development project were "betrayed" by the Chinese Communist Party.

His lawyer told AFP that he had been pleading for Thai authorities to allow him to face trial in the US and said he feared "he will be deprived of due process" and "ultimately disappeared".

Some analysts pointed to limitations in China's justice system that might prevent the full extent of the cyberscam schemes from being brought to light.

"China is not an open society where investigation will reveal the true nature of things," said Cambodian academic and former ambassador Pou Sothirak.

burs-sjc/slb/sco/ceg/abs

(A.Berg--BBZ)