Written by: Low De Wei, David Ramli, Bloomberg

Translated by: Saoirse, Foresight News

Key Points

• Cambodian crime group leader Chen Zhi and his associates have established a family office in Singapore, reportedly enjoying tax benefits.
• Chen Zhi and his associates have been sanctioned by U.S. authorities for allegedly laundering billions of dollars obtained from online investment scams through cryptocurrency.
• The case has prompted Singaporean official agencies and businesses to review the financial dealings of the group with this commercial hub, including connections with sovereign investor Temasek Holdings-supported enterprises.

The leader of a Cambodian crime group and his associates have set up a family office in Singapore that reportedly enjoys tax benefits, while also establishing partnerships with Temasek Holdings-supported companies and spending millions of dollars on real estate in Singapore.

Chen Zhi, chairman of Prince Holding Group, has been identified by U.S. prosecutors as a leader of one of Asia's largest multinational crime organizations. On October 14, Chen Zhi and several associates (including three Singaporean citizens) were sanctioned by U.S. authorities for allegedly laundering billions of dollars obtained from online investment scams through cryptocurrency.

According to U.S. disclosures, locations controlled by Chen Zhi used 1,250 mobile phones to manage 76,000 accounts on a social media platform. Source: U.S. Federal Prosecutor's Office court documents.

It is alleged that this crime group used forced labor in Cambodia, manipulating thousands of victims worldwide emotionally—first inducing them to invest more money, then absconding with all their funds, a scam technique known as "pig butchering." Currently, this case has prompted relevant departments and businesses in Singapore to verify the financial connections of the group with this commercial center.

Chen Zhi and his core associate Chen Xiuling participated in the establishment of a single-family office (a private institution providing comprehensive wealth management, asset allocation, tax planning, legal compliance, and lifestyle services for a single high-net-worth family) called "DW Capital Holdings Pte," which was founded in 2018 and reportedly enjoys a 13-fold tax benefit provided by Singapore's financial regulatory authority—the Monetary Authority of Singapore (MAS). According to the office's official website, Chen Zhi is its founder and chairman; another exchange document shows that Chen Xiuling has served as the office's chief financial officer since 2021.

A spokesperson for the Monetary Authority of Singapore stated, "We are investigating whether there are any violations of MAS regulations in this case." As of now, DW Capital Holdings has not responded to requests for comment.

These allegations have once again raised concerns about Singapore's role in criminal activities in Southeast Asia. Previously, several convicted individuals in Singapore's largest money laundering case also obtained tax exemptions from local authorities through family offices.

This week, the U.S. government announced a series of sanctions against entities within Cambodia, with sanctions against Prince Holding Group being one of them. The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) also issued a "final rule" to exclude Huione Group from the U.S. financial system, citing Bloomberg's reports and emphasizing the challenges of cracking down on such opaque illegal trading markets.

It remains unclear whether Singaporean police will investigate the U.S. allegations against Prince Holding Group. The Singapore police have not yet responded to requests for comment.

Chen Xiuling previously served as an independent director for the Temasek-supported live streaming platform 17LIVE Group and resigned on October 16.

In December 2023, 17LIVE went public on the Singapore Exchange through a merger with Vertex Technology Acquisition Corp. (a special purpose acquisition company supported by Temasek and its subsidiary Vertex Ventures), at which time Chen Xiuling was appointed as an independent director. According to 17LIVE's latest annual report, as of March this year, Temasek's presumed shareholding in the company remains close to 26%.

Before Chen Xiuling's resignation, 17LIVE's Chief Investment Officer Joji Koda responded to inquiries via email, stating that Chen Xiuling was appointed to her position through recommendations during the "reverse merger" process, and the company had conducted a "routine" due diligence review of her; it was only when Bloomberg contacted for an interview that the company became aware of the related allegations.

Joji Koda stated, "17LIVE has never had any business dealings with DW Capital, Chen Zhi, or Chen Xiuling," and added that neither Temasek nor Vertex Ventures participated in the nomination or appointment process for Chen Xiuling, "17LIVE is not aware of whether the aforementioned three parties have ever invested in the company's securities."

A Temasek spokesperson declined to comment.

Real Estate Investment Landscape

Prince Holding Group had planned to develop a $16 billion "REAM CITY" project in Sihanoukville, Cambodia, during which the group also established partnerships with other companies in Singapore. A subsidiary of Prince Holding Group, Canopy Sands Development Co., commissioned Temasek's subsidiary SJ Group to provide master planning, urban design, and coastal engineering services for the project. U.S. authorities have listed Canopy Sands Development Co. as one of the entities associated with Chen Zhi.

A spokesperson for SJ Group (more widely known as Surbana Jurong) stated that the master planning project previously undertaken by the group ended in 2022, during which it did not hold ownership of or participate in the operation of the project, while emphasizing that the group has a robust compliance process. The spokesperson added, "We currently have no collaborative projects with Prince Holding Group or its associated entities."

Temasek-supported Singapore real estate company CapitaLand Investment Ltd.'s hospitality segment, Ascott Ltd., has been commissioned by Canopy Sands Development Co. in 2024 to provide hotel management services for two hotels in Cambodia.

An Ascott spokesperson stated that the group does not hold any equity in the aforementioned hotels and emphasized that it conducts thorough due diligence on its business partners. Currently, Ascott "is assessing the situation based on the latest developments and will take appropriate measures in accordance with applicable sanctions and laws."

Additionally, transaction records reviewed by Bloomberg show that Chen Zhi purchased a penthouse in the luxury apartment "Gramercy Park" near Singapore's Orchard Road shopping district for SGD 17 million (approximately USD 13 million); his associate, Cambodian citizen Li Thet, purchased a residence in the nearby "Boulevard Vue" apartment for SGD 18.2 million.

As early as 2024, Prince Holding Group had issued a statement on its official website denying allegations of money laundering and criminal activities reported by various media outlets, but as of October 16, these rebuttal statements have become inaccessible. Currently, Prince Holding Group has not responded to requests for comment.

Patricia Hurtado, Kai Schultz also contributed to this article.

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