The US and UK have issued unprecedented sanctions against a notorious Cambodian scam syndicate, implicating 17 business entities in Singapore.
On 15 Oct (US time), the United States Treasury Department and law enforcement authorities took unprecedented action against a major Cambodia-based scam and cryptocurrency crime ring, implicating three Singaporeans and 17 related Singapore entities in an extensive, multinational fraud and human trafficking operation.
The crackdown centers on Chen Zhi, a Chinese-Cambodian tycoon and chairman of Prince Holding Group, accused of orchestrating forced-labor scam compounds in Cambodia that use trafficked victims to execute fraudulent “pig-butchering” cryptocurrency investment schemes defrauding billions worldwide.
The US sanctions freeze assets of Chen Zhi, his associates — including Singaporeans Karen Chen (Chen Xiuling), Nigel Tang, and Alan Yeo — and numerous shell companies registered in Singapore, many linked to a common Bukit Merah address.
A twist of rules-based irony
In a twist of irony, Chen Zhi and his network had established family offices and companies in a rules-based nation state to actually leverage tax incentives and international banking channels to boost their nefarious syndicate.
These legitimate fronts had been exploited to mask the syndicate’s darker reality, including extensive use of forced labor and sophisticated layering of crypto transactions to launder proceeds.
Despite Singapore’s financial hub status and anti-money laundering (AML) laws, the criminals had not only thrived there undetected for prolonged periods, but had even managed to enjoy special schemes that attract and reward foreign investors.
This major takedown highlights the scale and sophistication of South-east Asia’s cyber-enabled financial crimes, the human toll of forced labor exploitation, and the capacity for criminal syndicates to intertwine illicit activities across borders.
When the world’s most “trusted” systems become the playground for audacious syndicates, holding power to account requires relentless scrutiny and investigative vigilance.