Singapore drawn into Cambodia "pig-butchering" fraud case, "tax haven" status questioned again

By Low De Wei, David Ramli, Bloomberg

Translated by Saoirse, Foresight News

Key Points

• Chen Zhi, the alleged leader of a Cambodian crime syndicate, and his associates established a family office in Singapore reportedly benefiting from tax incentives.

• Chen Zhi and associates were sanctioned by U.S. authorities for allegedly laundering billions of dollars in proceeds from online investment scams through cryptocurrency.

• The case has prompted Singaporean government agencies and companies to review financial links between the group and this business hub, including connections with firms backed by Temasek Holdings, a sovereign investor.

The alleged leader of a Cambodian crime syndicate and his associates set up a family office in Singapore reportedly enjoying tax benefits, forged ties with firms supported by Temasek Holdings, and spent millions of dollars buying property in Singapore.

Chen Zhi, chairman of Cambodia’s Prince Holding Group, has been identified by U.S. prosecutors as the head of one of Asia’s largest transnational criminal organizations. On October 14, Chen and several associates—including three Singapore citizens—were sanctioned by U.S. authorities for allegedly using cryptocurrency to launder billions of dollars obtained through online investment scams.

(According to U.S. disclosures, facilities controlled by Chen used 1,250 phones to manage 76,000 accounts on a social media platform. Source: Court documents from the U.S. Attorney's Office)

The criminal network is accused of using forced labor in Cambodia and emotionally manipulating thousands of victims worldwide—luring them into investing more before stealing all their funds—a scam known as "pig-butchering." The case has now prompted Singaporean regulators and businesses to scrutinize the group’s financial connections with the commercial hub.

Chen Zhi and key associate Chen Xiuling co-founded DW Capital Holdings Pte Ltd, a single-family office providing comprehensive wealth management, asset allocation, tax planning, legal compliance, and lifestyle services for a high-net-worth family. Established in 2018, the firm reportedly benefits from a 13-fold tax incentive offered by Singapore’s financial regulator, the Monetary Authority of Singapore (MAS). According to the firm’s website, Chen Zhi is its founder and chairman; exchange filings show Chen Xiuling has served as chief financial officer since 2021.

A spokesperson for MAS said: “We are investigating whether there have been breaches of MAS regulations in this case.” As of now, DW Capital Holdings has not responded to requests for comment.

The allegations renew scrutiny over Singapore’s role in facilitating criminal activities in Southeast Asia. In a previous major money-laundering case in Singapore, several convicted individuals also benefited from tax exemptions granted to family offices.

This week, the U.S. government announced a series of sanctions targeting entities in Cambodia, including Prince Holding Group. The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule removing Cambodia-based Huione Group from the U.S. financial system, citing Bloomberg reporting to highlight challenges in dismantling such opaque, illicit markets.

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

Chen Xiuling, who previously served as an independent director at 17LIVE Group—a livestreaming platform backed by Temasek—resigned on October 16.

In December 2023, 17LIVE listed on the Singapore Exchange via a merger with Vertex Technology Acquisition Corp., a special purpose acquisition company supported by Temasek and its subsidiary Vertex Ventures. Chen Xiuling was appointed as an independent director during that process. According to 17LIVE’s latest annual report, Temasek’s deemed ownership stake in the company remained close to 26% as of March this year.

Prior to Chen’s resignation, Joji Koda, 17LIVE’s chief investment officer, said via email that she was recommended during the SPAC listing process and had undergone “routine” due diligence by the company, adding that the firm only became aware of the allegations when contacted by Bloomberg.

Koda stated: “17LIVE has never conducted any business with DW Capital, Chen Zhi, or Chen Xiuling,” and added that neither Temasek nor Vertex Ventures participated in her nomination or appointment. “17LIVE does not know whether any of these parties held investments in our securities,” he said.

A Temasek spokesperson declined to comment.

Property Investment Portfolio

Prince Holding Group planned a $16 billion “REAM CITY” project in Sihanoukville, Cambodia, forging partnerships with other Singapore-based firms along the way. Canopy Sands Development Co., a subsidiary of Prince Holding Group, engaged SJ Group, a subsidiary of Temasek, to provide master planning, urban design, and coastal engineering services for the project. U.S. authorities have identified Canopy Sands Development Co. as one of the entities linked to Chen Zhi.

A spokesperson for SJ Group—better known as Surbana Jurong—said its master-planning engagement concluded in 2022 and that it never held ownership or operational involvement in the project, emphasizing that the firm maintains robust compliance procedures. The spokesperson added: “We currently have no ongoing projects with Prince Holding Group or its related entities.”

Ascott Limited, the lodging arm of CapitaLand Investment Ltd.—a Singapore real estate firm backed by Temasek—was commissioned by Canopy Sands Development Co. in 2024 to manage two hotels in Cambodia.

An Ascott spokesperson said the group holds no equity in the hotels and stressed that it conducts thorough due diligence on business partners. Ascott is “currently assessing the situation based on recent developments and will take appropriate actions in accordance with applicable sanctions and legal requirements.”

Transaction records reviewed by Bloomberg also show Chen Zhi purchased a penthouse unit at Gramercy Park, a luxury condominium near Singapore’s Orchard Road shopping district, for 17 million Singapore dollars (about $13 million). Another associate, Cambodian national Li Thet, bought a unit at the nearby Boulevard Vue condominium for 18.2 million Singapore dollars.

As early as 2024, Prince Holding Group posted statements on its website denying media reports linking it to money laundering and criminal activities, but those rebuttals were no longer accessible as of October 16. Prince Holding Group has not responded to requests for comment.

Patricia Hurtado and Kai Schultz contributed to this article.