Chen Zhi, the head of Prince Holding Group, established a family office in Singapore that purportedly benefited from unique tax advantages while allegedly overseeing one of Asia's most significant cryptocurrency criminal operations.
As Healthy urvivalpreviouslyreportedU.S. prosecutors stated that Chen and several associates, including three Singaporean citizens, faced sanctions this week due to money laundering involving billions of dollars generated from online scams that relied on emotional manipulation and forced labor in Cambodia.
The fraud occurred through the well-known "pig butchering" scheme, in which victims are tricked into fake investment platforms, persuaded to deposit funds, and then completely drained once their balance becomes substantial.
The U.S. Department of Justice stated that Chen's network utilized cryptocurrency to launder funds via shell accounts and digital wallets.
As more information came to light, regulators and companies in Singapore started investigating how this criminal network functioned via seemingly legitimate financial pathways within one of the world's most tightly regulated business centers.
MAS examines DW Capital's tax incentive assertion
Chen and key associate Chen Xiuling were part of establishing the single family office DW Capital Holdings Pte in 2018, which stated it received a 13X tax benefit from Singapore's financial regulator, the Monetary Authority of Singapore. Chen Zhi is listed as the founder and chairman on the office's website. Chen Xiuling has served as the chief financial officer since 2021, as noted in another exchange filing.
When Bloomberg reached out to MAS, a representative reportedly stated, "We are investigating whether any MAS regulations have been violated in this case." The comment confirmed that the regulator is now examining if DW Capital managed to bypass gaps in supervision.
The restrictions imposed on Prince Group are a component of a larger U.S. effort targeting criminal organizations based in Cambodia.
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) released a "final rule" that reducesHuione Groupcompletely out of the US financial system, referencing continued challenges in eliminating illegal cryptocurrency markets. The Singapore police have not yet announced if they will initiate their own investigation into the Prince Group.
Xiuling, who had previously worked as an independent director at 17LIVE Group Ltd., stepped down on Thursday following the announcement of US sanctions. The live-streaming service, supported by Temasek Holdings, went public on the Singapore Exchange in December 2023 after combining with Vertex Technology Acquisition Corp., a SPAC backed by Temasek.
Currently, Temasek owns approximately 26% of 17LIVE via its subsidiary, Vertex Ventures. Prior to her departure, 17LIVE's Chief Investment Officer Joji Koda mentioned in an email that Xiuling was appointed during the de-SPAC process following standard background screenings.
"17LIVE has never engaged in any business dealings with DW Capital, Chen Zhi, or Chen Xiuling," Koda stated, noting that neither Temasek nor Vertex were part of her appointment and only became aware of the accusations after Bloomberg contacted them.
Real estate investments connected to Prince and high-end condominiums in Singapore
The criminal inquiry goes beyond financial matters. Prince Group's construction division, Canopy Sands Development Co., engaged SJ Group, a subsidiary of Temasek, to handle planning and engineering tasks for Ream City, a $16 billion initiative in Sihanoukville, Cambodia. The U.S. Treasury listed Canopy Sands as one of the organizations linked to Chen's criminal network.
Another company affiliated with Temasek, CapitaLand Investment, was hired in 2024 to oversee two hotels in Cambodia under the Prince brand. However, it later clarified that it does not have any ownership interest and is "reviewing the recent developments" to confirm adherence to international sanctions.said Bloomberg.
Property records indicate that Chen invested S$17 million ($13 million) in a high-end penthouse located in Gramercy Park, close to Orchard Road. His colleague Li Thet, who is also from Cambodia and appears on the US sanctions list, acquired a different property nearby for S$18.2 million at Boulevard Vue.
The Prince Group had previously rejected all accusations of money laundering in statements from 2024, claiming that media reports were untrue. However, these denials are no longer present on the company's website, with no evidence remaining.
Currently, regulators in Singapore are trying to understand how Chen constructed a billion-dollar empire of cryptocurrency frauds, real estate transactions, and tax benefits into a network that reached some of the city's most respected institutions without being halted.
The Monetary Authority of Singapore (MAS) announced on Thursday that it will postpone the implementation of new regulations concerning how banks handle cryptoassets until 2027. This extends the initial deadline of January 1, 2026, after receiving feedback from a consultation on the proposed changes.
"We will keep an eye on changes in the cryptocurrency market and international regulatory guidelines to maintain consistency and promote ethical advancement," the regulatory body stated.
In the meantime, Singapore is evaluating the removal of director positions from individuals who have been found guilty of money laundering crimes within the city-state, following a S$3-billion ($2.34 billion) scandal that harmed Southeast Asia's nation's image as a major financial hub.
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