SINGAPORE — The Singapore family office of alleged scam kingpin Chen Zhi and three companies linked to him are seeking access to funds that were frozen by the city-state’s authorities last month.
The firms have applied for a court order to unfreeze cash in accounts at Malayan Banking Bhd and Revolut Ltd for four Singapore firms, according to a document reviewed by Bloomberg News and a lawyer who represents Karen Chen Xiuling, a director and chief financial officer of the family office.
Last month, Chen Zhi, his Cambodian conglomerate Prince Holding Group, and a multitude of companies and individuals connected to him were sanctioned by US authorities. The Treasury Department of the United States accused the 37-year-old of leading a transnational criminal ring that operated online scam centres, stole from victims around the world and laundered billions of dollars. The US also indicted Chen Zhi and seized US$15 billion in Bitcoin he controlled.
Following the US action, Singapore authorities in late October seized more than S$150 million (US$115 million) in assets linked to Chen Zhi and Prince, including properties, cars and bank accounts.
The court application in Singapore was for his family office DW Capital Holding Pte, a logistics business called Capital Zone Warehousing Pte, and two other private companies: Skyline Investment Management Pte and Citylink Solutions Pte.
Clarence Lun Yaodong, a lawyer representing Karen Chen, told Bloomberg News the application is for “limited release of funds” to pay salaries, legal fees and expenses, rental, utilities as well as other expenses.
“The freezing orders have caused considerable hardship, particularly for the employees and their families whose livelihoods are directly affected,” Karen Chen said in a statement via Lun on Thursday. “While this situation is deeply concerning, we remain respectful of the ongoing investigation and trust the judiciary to make the appropriate decisions and orders in due course.”
US authorities said Karen Chen oversaw Prince Holding Group companies based in Mauritius, Taiwan and Singapore, and she is among the individuals sanctioned. “We do not have any comments save that our client has denied any wrongdoings,” said Lun, managing director at Fervent Chambers LLC.
Malaysia-based Maybank, UK-based Revolut and the Singapore Police Force did not immediately respond to requests for comment.
Graphic: Office of Foreign Assets Control, US Department of the Treasury
Earlier this week, Prince Group said it “categorically rejects the notion that it or its Chairman, Chen Zhi, has engaged in any unlawful activity.”
It added that “the recent allegations are baseless and appear aimed at justifying the unlawful seizure of assets worth billions of dollars,” and said they have “caused undue harm to thousands of innocent employees, partners and communities who the Group serves.”
The group has hired US law firm Boies Schiller Flexner LLP, which is seeking to recover the Bitcoin seized from Chen Zhi, arguing that it was stolen.
Read more