Singapore is embroiled in a Cambodian Pig-butchering scam case, and the "tax haven" is under scrutiny again.

Written by: Low De Wei, David Ramli, Bloomberg

Compiled by: Saoirse, Foresight News

Key Points

The head of the Cambodian crime syndicate, Chen Zhi, and his associates have established a family office in Singapore, which reportedly enjoys tax benefits.

Chen Zhi and his associates have been sanctioned by U.S. authorities for allegedly laundering billions of dollars obtained through cryptocurrency for online investment fraud.

Currently, this case has prompted official agencies and enterprises in Singapore to sort out the financial transactions of the group with this business hub, including the relationships with companies supported by sovereign investor Temasek Holdings.

The leader of a criminal group in Cambodia and its affiliates established a family office in Singapore, which allegedly enjoys tax benefits, while also forming partnerships with companies supported by Temasek Holdings, spending millions of dollars on real estate in Singapore.

Chen Zhi, the chairman of Prince Holding Group in Cambodia, 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 in proceeds from online investment fraud through cryptocurrency.

(According to disclosures from the United States, the location controlled by Chen Zhi used 1,250 mobile phones to manipulate 76,000 accounts on a certain social media platform. Source: Court documents from the U.S. Attorney's Office.)

It is reported that the criminal group uses forced labor in Cambodia to emotionally manipulate thousands of victims worldwide — first enticing victims to invest more funds, then running off with all their money. This type of scam is known as “pig butchering.” Currently, this case has prompted relevant departments and businesses in Singapore to investigate the financial connections between this group and the commercial center.

Chen Zhi and his core associate Chen Xiuling participated in the establishment of a single family office (a private institution that provides comprehensive wealth management, asset allocation, tax planning, legal compliance, and lifestyle services specifically for a single high-net-worth family) “DW Capital Holdings Pte”, which was founded in 2018 and is reportedly enjoying a 13-fold tax incentive provided by the Singapore financial regulator - the Monetary Authority of Singapore (MAS). According to the office's official website, Chen Zhi is the founder and chairman; another exchange document indicates 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 the relevant regulations of the Monetary Authority of Singapore in this case.” As of now, DW Capital Holdings has not responded to the request for comment.

This accusation has once again drawn attention to the role Singapore plays in criminal activities in the Southeast Asian region. Previously, several convicted individuals involved in Singapore's largest money laundering case had also obtained tax exemptions from local authorities through family offices.

The U.S. government announced a series of sanctions this week against institutions within Cambodia, with sanctions against the Prince Group being one of them. The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) also issued a “final rule” to exclude Huione Group from the U.S. financial system, citing a report from Bloomberg News that highlights the challenges of cracking down on such opaque illegal trading markets.

It is currently unclear whether the Singapore police will investigate the allegations against the Prince Group made by the United States. The Singapore police have not yet responded to requests for comment.

Chen Xiuling previously served as an independent director of the live streaming platform 17LIVE Group supported by Temasek and has 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, with Chen Xiuling appointed as an independent director at that time. According to 17LIVE's latest annual report, as of March this year, Temasek's estimated ownership stake in the company remains close to 26%.

Before Chen Xiuling resigned, Joji Koda, the Chief Investment Officer of 17LIVE, responded to inquiries via email, stating that Chen Xiuling was appointed to the position through a recommendation during the “reverse takeover” process, and the company had conducted a “regular” due diligence review on her; the company only became aware of the related allegations when Bloomberg News reached out for an interview.

Joji Koda stated: “17LIVE has never had any business dealings with DW Capital, Chen Zhi or Chen Xiuling,” and added that Temasek and Vertex Ventures were not involved in the nomination or appointment process of Chen Xiuling, “17LIVE is not aware if the aforementioned three parties have ever invested in the company's securities.”

Temasek spokesperson declined to comment.

Real Estate Investment Landscape

The Prince Group once planned to develop the $16 billion “REAM CITY” project in Sihanoukville, Cambodia, during which the group also established partnerships with other Singaporean companies. The Prince Group's subsidiary, Canopy Sands Development Co., commissioned the Temasek subsidiary SJ Group to provide overall planning, urban design, and coastal engineering services for the project. U.S. authorities have listed Canopy Sands Development Co. as one of the entities linked to Chen Zhi.

A spokesperson for Surbana Jurong Group (more commonly known as Surbana Jurong) stated that the master planning project previously undertaken by the group was completed in 2022, during which it did not hold ownership of the project or participate in its operation, while emphasizing that the group has a comprehensive compliance process. The spokesperson added, “We currently have no collaborative projects with Prince Holding Group and its affiliated entities.”

CapitaLand Investment Ltd., a Singapore real estate company supported by Temasek, has been commissioned by Crown Sands Development Company in 2024 to provide hotel management services for two hotels in Cambodia under its lodging segment, The Ascott Ltd.

The spokesperson for Ascott stated that the group does not hold any equity in the aforementioned hotels and emphasized the importance of conducting due diligence on business partners. Currently, Ascott “is evaluating based on the latest developments and will take responsive measures in accordance with applicable sanctions regulations and laws.”

In addition, trading records reviewed by Bloomberg News show that Chen Zhi purchased a penthouse in the luxury apartment “Gramercy Park” near the Orchard Road shopping district in Singapore for 17 million Singapore dollars (approximately 13 million US dollars); his associate, Cambodian citizen Li Thet, bought a residence in the nearby “Boulevard Vue” apartment for 18.2 million Singapore dollars.

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

Patricia Hurtado and Kai Schultz also contributed to this article.