How One Man Rules in Asia’s Golden Triangle

Summary

The Golden Triangle Special Economic Zone (GTSEZ) is a hub for illicit activities, controlled by Chinese national Zhao Wei. Despite being a center for drug trafficking, human trafficking, and scams, Zhao Wei maintains a facade of legitimacy, even with the Lao government holding a 20% stake. The Thai army's efforts to curb drug trafficking are dwarfed by the scale of the problem, and international law enforcement faces sovereignty issues. The UN and US Treasury Department have condemned the GTSEZ's activities, but Zhao Wei continues to deny involvement, while victims like 'Siti' remain trapped in his illicit empire.

Takeaways

• 📍 The Golden Triangle Special Economic Zone (GTSEZ) is a hub for various criminal activities including drug trafficking, human trafficking, and scam operations.
• 🌐 Victims are often lured through online job ads promising lucrative opportunities abroad, mainly in Southeast Asia.
• 🇨🇳 Zhao Wei, a Chinese national, is allegedly the mastermind behind the criminal activities in the GTSEZ, setting rules and operating with significant influence.
• 🔗 China's close ties with Laos, a communist country, give it considerable sway over the region, raising questions about its stance on Zhao Wei's operations.
• 🏔️ The Thai army frequently patrols the northern border areas to combat drug trafficking, seizing large quantities of drugs, especially methamphetamines.
• 🚨 The GTSEZ, located at the heart of the Golden Triangle, is a key point for drug storage and distribution, with meth trafficking being a significant issue.
• 🏢 The Kings Romans Casino within the GTSEZ is suspected to be involved in money laundering, facilitating the transfer of illicit funds into legitimate financial systems.
• 💼 Zhao Wei portrays himself as a legitimate businessman and leader, with ties to the Lao government and involvement in projects like the Bokeo International Airport.
• 📜 The Lao government's support for Zhao Wei is evident through their 20% stake in the GTSEZ, despite international concerns over illegal activities.
• 🌐 The scale of online scamming from the GTSEZ is vast, with operations stealing billions of dollars annually through sophisticated schemes like 'pig butchering scams'.

Q & A

What is the Golden Triangle Special Economic Zone (GTSEZ) known for?

The Golden Triangle Special Economic Zone is known as a major center for criminal activities including drug trafficking, human trafficking, and scam operations.

How do victims typically get deceived into the criminal activities in GTSEZ?

Victims are often deceived by online ads promising career opportunities abroad with good pay, which lure them into situations of exploitation.

Who is the alleged controller of the transnational crime hub in GTSEZ?

Zhao Wei, a Chinese national, is allegedly in charge of the transnational crime hub in GTSEZ, setting the rules and operating the zone.

What is the relationship between China and Laos in terms of influence?

Laos, being a communist country, has close ties to the Chinese Communist Party, granting China significantly more influence in Laos than other countries like the United States.

What is the primary question regarding China's stance on the criminal activities in GTSEZ?

The primary question is whether China will eventually decide to put a stop to the criminal activities in GTSEZ and what their attitude towards Zhao Wei is.

What role do the Thai army play in relation to the GTSEZ?

The Thai army frequently patrols the area near the Burmese border, looking for drug traffickers and securing the northern border of Thailand from the influx of drugs.

How has drug trafficking in the region evolved?

Drug trafficking, particularly of methamphetamines, has exploded across the region in recent years, with the GTSEZ serving as a key location for storage and distribution.

What is the significance of the Kings Romans Casino in the GTSEZ?

The Kings Romans Casino is central to the GTSEZ and plays a crucial role in capital flight and illicit financial transfers, serving as a node for criminal organizations to launder illegal proceeds.

How does Zhao Wei present himself in public?

Zhao Wei presents himself as a venerated leader in the GTSEZ, often seen in public ceremonies and associating with senior Laos government officials, despite allegations against him.

What was the impact of the Mekong murders on Zhao Wei's position?

The Mekong murders led to the arrest and execution of a local strongman named Naw Kham, which in turn set Zhao Wei up for the significant success he has achieved since.

How do law enforcement officials view Zhao Wei's denials of involvement in illegal activities?

Law enforcement officials find Zhao Wei's denials of involvement in illegal activities laughable, as they believe the illegal activity remains at the core of the enterprise.

What is the 'pig butchering' scam and how does it operate?

The 'pig butchering' scam is a sophisticated form of online scamming where the scammer builds trust with the victim, tricks them into downloading a controlled cryptocurrency trading app, and then 'slaughter' the victims by taking all their assets once they've invested everything.

What is the challenge faced by law enforcement in dealing with the GTSEZ?

The challenge faced by law enforcement is the issue of sovereignty, as international law enforcement bodies cannot operate in a country without its consent, and the Lao government supports Zhao Wei.

How might China's stance potentially change the situation in GTSEZ?

China, being a significant influence in Laos, could change the situation in GTSEZ if it decides to view its interests differently or if the geopolitical tide shifts, potentially turning against Zhao Wei.

Outlines

00:00

🚨 Criminal Nexus in the Golden Triangle

The Golden Triangle Special Economic Zone (GTSEZ), under the control of Chinese national Zhao Wei, is a hub for various criminal activities including drug trafficking, human trafficking, and scam operations. Victims are often lured by online job ads promising lucrative opportunities abroad. The zone's strategic location and China's significant influence in Laos make it a challenging area for law enforcement. The Thai army frequently patrols the border to intercept drug traffickers, with methamphetamines being a major concern. The GTSEZ, despite being a self-governing entity, is known for its role in drug storage and distribution, with Thailand being a key transit point for these illicit substances. The Thai government has been actively trying to curb drug trafficking through its borders, especially with neighboring countries like Myanmar and Laos.

05:00

🃏 Kings Romans Casino: Illicit Finance and Zhao Wei's Denial

At the heart of the GTSEZ is the Kings Romans Casino, which is suspected of being a key player in capital flight and illicit financial activities. According to various law enforcement agencies, casinos like these are critical for laundering criminal proceeds into legitimate financial systems. Zhao Wei, the alleged mastermind behind the GTSEZ, denies any involvement in the drug trade and presents himself as a legitimate businessman and leader in the region. He has been involved with the casino business and has ties with the National Democratic Alliance Army in northern Myanmar. Despite the UN Office on Drugs and Crime's documentation of the zone's illegal activities, Zhao Wei maintains that the GTSEZ does not engage in drug trafficking, human trafficking, or scam operations, and he attributes US sanctions against him to geopolitical issues.

10:03

📱 Online Scams and the Plight of Trafficked Victims

The narrative shifts to揭露 the dark side of online scamming, particularly focusing on the 'pig butchering' scams where victims are lured into downloading cryptocurrency trading apps controlled by criminal syndicates. These scams involve building trust with the victim before exploiting them for financial gain. The scale of these operations is vast, with industrial-scale compounds housing workers who are essentially prisoners, facing harsh punishments if they fail to meet targets. The Golden Triangle Special Economic Zone's sovereignty presents a challenge for international law enforcement, as agencies like the FBI, DEA, or Thai police cannot intervene without the host country's consent. The Lao government's support for Zhao Wei is evident through their stake in the GTSEZ. China's influence in the region is significant, and while they may currently turn a blind eye to criminal activities, this could change if their strategic interests evolve. The story of 'Siti,' an Indonesian woman trafficked into the SEZ, highlights the human cost of these criminal operations, with thousands still trapped and awaiting rescue.

Keywords

💡Golden Triangle Special Economic Zone

The Golden Triangle Special Economic Zone (GTSEZ) is a region in Laos that has been developed into a hub for various criminal activities, including drug trafficking, human trafficking, and scam operations. It is under the control of Chinese national Zhao Wei, who has been granted a 99-year lease on the territory by the Lao government. The zone is notorious for its illicit activities, which are allegedly tolerated by Chinese authorities due to the strategic importance of the area and the potential usefulness of criminal actors in certain pursuits.

💡Zhao Wei

Zhao Wei is a Chinese businessman who is the central figure in the operations of the Golden Triangle Special Economic Zone. He has been granted extensive control over the area through a 99-year lease and is alleged to be involved in various criminal activities, including drug trafficking and money laundering. Despite being sanctioned by the U.S. Treasury Department for his involvement in illicit activities, Zhao Wei continues to operate with seeming impunity, suggesting a level of tolerance or even complicity from Chinese authorities.

💡Drug trafficking

Drug trafficking is a significant criminal activity within the Golden Triangle region. The area is known for the production and distribution of methamphetamines, with large volumes being trafficked across borders. The Thai army frequently conducts patrols to intercept drug shipments, but the scale of the drug trade remains vast, with a record 169 tons of methamphetamines seized in Southeast Asia in one year alone. The GTSEZ serves as a critical node for storage and distribution of these drugs.

💡Human trafficking

Human trafficking is another form of criminal activity that takes place within the Golden Triangle. Victims are often lured by false promises of employment and are then forced to work in scam centers or other illicit operations. The region has become a hub for online scamming, with trafficked individuals being forced to engage in fraudulent activities, often under harsh and abusive conditions.

💡Online scamming

Online scamming has emerged as a major criminal enterprise in the Golden Triangle, with operations that are both sophisticated and extensive. Scammers, often victims of trafficking themselves, operate in industrial-scale compounds, engaging in various forms of online deception to defraud individuals and businesses. The scams, sometimes referred to as 'pig butchering scams,' involve building trust with victims before exploiting them for financial gain.

💡Chinese organized crime groups

Chinese organized crime groups are mentioned as some of the most powerful criminal networks both in Southeast Asia and beyond. These groups are deeply involved in the illicit activities within the Golden Triangle, including drug trafficking, human trafficking, and scam operations. Their influence and operations extend across international borders, contributing to the complexity and persistence of these criminal activities.

💡Kings Romans Casino

The Kings Romans Casino is a central feature within the Golden Triangle Special Economic Zone and plays a significant role in illicit financial activities. According to various law enforcement agencies, casinos like Kings Romans are critical nodes for criminal organizations to launder the proceeds of illegal activities into the legitimate financial system. The large amounts of cash exchanged in these casinos make them ideal for money laundering purposes.

💡Laos

Laos is a communist country with close ties to the Chinese Communist Party, which gives China significant influence in the region. The Golden Triangle Special Economic Zone is located in Laos, and the Lao government has been involved in its establishment and operation. Despite international scrutiny and sanctions against Zhao Wei, the alleged crime boss running the GTSEZ, the Lao government has not taken action against him, suggesting a level of complicity or tolerance of the criminal activities occurring within its borders.

💡Mekong River

The Mekong River is a significant geographical feature in the region, serving as a natural border and a conduit for illicit activities. The river's banks are home to the Golden Triangle Special Economic Zone, and it is along these banks that the Kings Romans Casino is situated, facilitating the blatant display of money laundering and other criminal activities. The river also serves as a reminder of the international nature of the criminal networks operating in the area, as it touches multiple countries and is a symbol of the interconnectedness of the region.

💡Transnational crime hub

The term 'transnational crime hub' refers to a location that serves as a center for criminal activities that span across national borders. In the context of the video, the Golden Triangle Special Economic Zone is described as such a hub, with criminal networks operating on an international scale. These networks are involved in a range of illicit activities, including drug trafficking, human trafficking, and scam operations, making the GTSEZ a focal point for law enforcement agencies and a subject of international concern.

Highlights

The Golden Triangle Special Economic Zone (GTSEZ) is a hub for various criminal activities including drug trafficking, human trafficking, and scam operations.

Victims are often lured by online ads promising lucrative job opportunities abroad.

Zhao Wei, a Chinese national, is allegedly in control of the GTSEZ, setting its rules and operating within a network of powerful Chinese organized crime groups.

China's influence in Laos, a communist country, is significantly greater than that of the United States, raising questions about China's stance on the criminal activities in the GTSEZ.

Zhao Wei's image as a leader in the GTSEZ is reinforced by his public appearances and interactions with senior Laos government officials.

The Thai army frequently patrols the border areas to combat drug trafficking, particularly methamphetamines, which are prevalent in the region.

A record 169 tons of methamphetamines were seized in Southeast Asia, with the majority originating from the Golden Triangle countries.

The GTSEZ, with its lax regulations, serves as an ideal location for drug storage and distribution.

Thailand's attempts to curb drug trafficking have been met with limited success due to the scale of the drug trade in the region.

Zhao Wei's alleged involvement in drug trafficking from Myanmar has been publicly denounced by US authorities.

Cryptocurrency scams, known as 'pig butchering scams,' have become prevalent, with victims being manipulated into downloading fraudulent trading apps.

The Kings Romans Casino within the GTSEZ plays a critical role in money laundering and capital flight.

Zhao Wei denies any involvement with the drug business and portrays himself as a legitimate businessman driving drug trafficking out of the Golden Triangle.

The GTSEZ was established by Zhao Wei with a 99-year lease on a significant portion of territory, effectively giving him control over the area.

Zhao Wei's past in the casino business and alignment with the Mong La Army in northern Myanmar has contributed to his rise in the region.

The Mekong murders in 2011 and the subsequent elimination of a rival warlord, Naw Kham, paved the way for Zhao Wei's dominance in the GTSEZ.

Law enforcement officials find Zhao Wei's denials of illegal activities laughable, as they believe these activities remain central to the GTSEZ's operations.

Human trafficking victims like 'Siti' are lured with false job promises and end up trapped in the GTSEZ, forced to engage in scam operations.

Chinese-origin criminal syndicates are estimated to steal $64 billion per year through various scam operations in Southeast Asia and beyond.

The GTSEZ's scam centers resemble normal offices but are staffed by workers who are effectively prisoners and face harsh punishments for non-compliance.

The Lao government's support for Zhao Wei is evident through their 20% stake in the GTSEZ, complicating international law enforcement efforts.

China's potential role in addressing the criminal activities in the GTSEZ is significant, given its influence over Laos and the strategic importance of the region.

Despite the challenges, the GTSEZ is expected to continue expanding, posing ongoing problems for law enforcement in Asia and globally.

Transcripts

The Golden Triangle Special Economic Zone

is an enormous center for

criminal activity of all kinds:

drug trafficking,

human trafficking,

and scam operations.

Victims have been mostly deceived by online ads

promising career opportunities abroad with good pay.

One man allegedly controls

this transnational crime hub:

Chinese national Zhao Wei.

Zhao Wei is in charge.

He sets the rules.

And Chinese organized crime groups have become

some of the most powerful criminal networks,

both in Southeast Asia and beyond.

Laos is a communist country with close ties to the Chinese Communist Party.

So China has dramatically more influence in Laos than,

say, the United States.

The big question here is whether China eventually

decides they want to put a stop to this or not.

One of the mysteries here is China's attitude to Zhao Wei.

They seem to be overall somewhat tolerant of him.

So who is Zhao Wei?

And why is an alleged crime boss

allowed to run this place like his personal kingdom?

So we’re here,

near the Burmese border in far northern Thailand

following a unit of the Thai army

who are patrolling these woods,

as they do frequently,

looking for drug traffickers.

The Thai army,

they find large volumes of drugs

coming over the border just about every week,

particularly methamphetamines.

In the videos that we received from the Thai military,

we can see the army officers trying to secure

the northern border of Thailand

that it shares with Laos and Myanmar.

Sometimes, during these patrols,

they will have to confront with drug traffickers.

A record 169 tons of methamphetamines

was seized in Southeast Asia last year.

82% of that came from the three countries

that make up the Golden Triangle:

Myanmar, Laos and Thailand.

And at the very heart of it

lies the Golden Triangle Special Economic Zone,

also known as the GTSEZ.

Meth trafficking has exploded

across the region in recent years.

It’s commonly packaged in tea packets,

with the GTSEZ in Laos acting as

a perfect location for storage and distribution.

If you do want to get large quantities of drugs

out of Southeast Asia,

you do often have to go through Thailand.

It is the most internationally connected

of the countries in mainland Southeast Asia.

The Thai government over the years

has tried to stop drug shipments coming over Thailand's borders,

particularly with Myanmar and Laos.

The self-governing GTSEZ was founded by Zhao Wei

who has been called out by US authorities

for his alleged involvement

in trafficking drugs from Myanmar.

These criminal groups have focused on

a full range of criminal markets that includes narcotics.

It includes precursor chemicals.

It includes human trafficking,

as well as online scamming.

These crypto slaves are spent working around the clock

sending these spam text messages to you

and it turns out the messages are mainly sent

by people in Southeast Asia

who are themselves victims of trafficking.

We have very clear public statements

from law enforcement bodies,

including the United States Treasury Department,

which enforces sanctions,

saying very emphatically that

what is going on here is not legal.

What we saw, and what indeed

the Thai military are able to do,

is really a relatively small effort

in the context of the overall drug trade.

At the center of the GTSEZ

is the Kings Romans Casino.

These casinos play an important role

in capital flight and illicit financial transfers.

They are, according to tons of different law enforcement agencies,

critical nodes for how criminal organizations launder

the proceeds of illegal activities

into the legitimate financial system.

A lot of the drug money gets laundered through the casinos,

and some argue that

that is, in fact, one of the key reasons

as to why the zone was established in the first place.

This is something that the UN Office on Drugs and Crime

has documented over the years in quite some detail.

But Zhao Wei denies any involvement with the drug business.

Zhao Wei very much leans into the image and the role of a venerated leader

in the Golden Triangle Special Economic Zone.

On the YouTube channels that are associated with the zone,

we see videos of Zhao inaugurating

a very lavish ceremony of

the Bokeo International Airport being opened.

And we see him rubbing shoulders with senior Laos government officials.

In 2007,

he reached a deal with the Lao government

to create the Golden Triangle Special Economic Zone.

He was given a 99-year lease

on about 39 square miles of territory,

and the terms of the deal essentially put him in charge

of this patch of the country.

Ostensibly, it is a legitimate tourism and commercial project

designed to bring development

to this poor part of Laos.

His companies publish these very glossy brochures

for prospective investors in the GTSEZ.

It's like looking at the annual report

of a Fortune 500 company.

Zhao Wei is from northern China originally.

He spent a significant amount of time

in the late 1990s, early 2000s,

first in Macau and then in northern Myanmar.

And his main focus there was the casino business,

later pivoting to align quite closely with

an ethnic armed organization in northern Myanmar

known as the National Democratic Alliance Army,

or the Mong La Army.

It's no coincidence that many of the labor,

the security forces inside of the zone,

also come from northern Myanmar.

Something happened that really gave Zhao Wei

a clear path to dominating this region.

The Mekong murders were attacks in 2011

on two Chinese cargo vessels in the Mekong.

13 sailors were killed.

There was this huge manhunt,

supported by China,

in the Golden Triangle

which led ultimately to the arrest of a warlord.

A local strongman named Naw Kham.

He was extradited to China and ultimately executed.

The elimination of Naw Kham

kind of set Zhao Wei up for the enormous success

that he's been able to achieve since.

In his telling,

he is a legitimate businessman who, if anything,

has been driving drug trafficking out of the Golden Triangle.

In a 2023 interview with Thai media,

he said the zone does not allow drug trafficking,

human trafficking and scam operations.

He said the US sanctions against him

are a geopolitical issue.

But when you do speak to law enforcement officials

who have investigated the GTSEZ and Zhao Wei,

they just find these denials laughable.

In the view of law enforcement officials,

the illegal activity absolutely continue

and absolutely remain

at the core of the enterprise.

I spoke to an Indonesian woman

whom we're going to call “Siti” to protect her identity,

and she had a story of being trafficked into the SEZ.

So she saw a job ad on Facebook.

She was promised a role working in graphics for computer games.

Shortly after she arrived,

her passport was taken away.

She was in a building that was locked.

You couldn't leave without a special access card,

and her job was to hang out on dating apps:

Tinder, Badoo, things like that.

Befriend lonely American men,

get them to trust her.

Around the pandemic,

there started to be reports of

the emergence of these scam centers.

It wasn't just in the GTSEZ.

There are a few other places around Asia

that became known as scamming hubs.

We identified $64 billion per year

were stolen by these Chinese-origin criminal syndicates

operating both in Southeast Asia

as well as elsewhere around the world.

You now have hundreds of industrial-scale compounds

where people are engaged in very elaborate and sophisticated forms of online scamming

that we would refer to as “pig butchering scams.”

The scammer builds a relationship of trust with the victim.

The perpetrator then tricks the individual into

downloading some type of a cryptocurrency trading app,

which is completely under the control of the scam syndicate.

Once the perpetrator senses that the victim

has really put everything in that they have...

They'll go in and slaughter the victims.

This is why it's called “pig butchering.”

I've seen some videos and photographs

of the inside of these scam centers.

They look like totally normal offices.

This is a white collar technology industry with a few important differences.

One is that most of the workers are effectively prisoners.

Another is that if you fail to hit your targets,

you might be beaten up,

or you might be locked in a room without food for a week,

which is what happened to two people we spoke to for this story.

The Thai locals we spoke to

seem to have mixed feelings about the Golden Triangle Special Economic Zone.

They can go there for legal gambling,

which is not something that they can do in Thailand.

What law enforcement,

whether in the US or Thailand or anywhere else,

keeps running into is the sovereignty problem.

The basic rule of international relations

is the FBI or the DEA,

or the Thai police,

or the United Nations Office on Drugs and Crime

cannot do anything in a country that doesn't want them doing it.

The most evident example of the Lao government’s support for Zhao Wei

is the fact that they hold a 20% stake

in the Golden Triangle Special Economic Zone.

There is one country that almost certainly could do a great deal

to change how things happen in the GTSEZ,

and that's China.

Laos is effectively a Chinese client state.

There are huge amounts of development assistance

that come from China every year.

This is an area that China views as strategic,

and if criminal actors can be useful in those pursuits,

China is perfectly willing to at least turn a blind eye to their activities,

if not in some cases, partner with them.

But that doesn't mean that if the tide shifts,

or China views its interests as changing,

it won't turn on Zhao Wei.

So for now,

this place is going to continue to expand,

and from the perspective of law enforcement in Asia and beyond,

it will continue to be a very big problem.

Thousands of trafficked victims still remain trapped with no rescue in sight.

As for Siti,

her nightmare is far from over.