Singapore Implicated in Cambodia Pig-Butchering Scam, "Tax Haven" Status Questioned Again

The latest allegations have once again drawn attention to Singapore's role in criminal activities in Southeast Asia.

Written by: Low De Wei, David Ramli, Bloomberg

Translated by: Saoirse, Foresight News

Key Points

• The head of a Cambodian crime syndicate, Chen Zhi, and his associates established a family office in Singapore, which reportedly enjoys tax incentives.
• Chen Zhi and his associates have been sanctioned by U.S. authorities for allegedly laundering billions of dollars in proceeds from online investment scams through cryptocurrency.
• This case has prompted Singaporean authorities and businesses to review the syndicate’s financial ties with the business hub, including connections with companies backed by sovereign investor Temasek Holdings.

The head of a Cambodian crime syndicate and his associates set up a family office in Singapore that reportedly enjoys tax incentives, established partnerships with Temasek-backed companies, and spent millions of dollars purchasing real estate in Singapore.

Chen Zhi, chairman of Prince Holding Group in Cambodia, has been identified by U.S. prosecutors as the head of one of Asia’s largest transnational criminal 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 scams through cryptocurrency.

(According to U.S. disclosures, premises controlled by Chen Zhi used 1,250 mobile phones to operate 76,000 accounts on a social platform. Source: U.S. Attorney’s Office court documents)

The syndicate is alleged to have used forced labor in Cambodia to emotionally manipulate thousands of victims worldwide—first luring them to invest more money, then absconding with all their funds. This scam method is known as "pig-butchering." The case has prompted relevant Singaporean authorities and businesses to review the syndicate’s financial connections with the city-state.

Chen Zhi and his key associate Chen Xiuling participated in the establishment of a single family office—DW Capital Holdings Pte, a private institution providing comprehensive wealth management, asset allocation, tax planning, legal compliance, and lifestyle services for a single high-net-worth family. Founded in 2018, the office reportedly enjoys a 13-fold tax incentive provided by the Monetary Authority of Singapore (MAS). According to the office’s website, Chen Zhi is its founder and chairman; another exchange filing shows that Chen Xiuling has served as CFO since 2021.

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

The latest allegations have once again drawn attention to Singapore's role in criminal activities in Southeast Asia. Previously, several individuals convicted in Singapore’s largest money laundering case also obtained local tax exemptions through family offices.

This week, the U.S. government announced a series of sanctions against institutions in Cambodia, including Prince Group. The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) also issued a "final rule" to remove Cambodia’s Huione Group from the U.S. financial system, citing Bloomberg reports and highlighting the challenges of cracking down on such opaque illegal markets.

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

Chen Xiuling previously served as an independent director of 17LIVE Group, a live-streaming platform backed by Temasek, 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 backed by Temasek and its subsidiary Vertex Ventures. At that 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 was still close to 26%.

Before Chen Xiuling’s resignation, 17LIVE’s Chief Investment Officer Joji Koda responded by email that Chen Xiuling was appointed to the position during the "backdoor listing" process upon recommendation, and the company had conducted "routine" due diligence on her; the company only became aware of the allegations when contacted by Bloomberg.

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

A Temasek spokesperson declined to comment.

Real Estate Investment Map

Prince Group once planned to develop the "REAM CITY" project in Sihanoukville, Cambodia, with an investment of $16 billion. During this process, the group also established partnerships with other Singaporean companies. Prince Group’s subsidiary, Canopy Sands Development Co., commissioned Temasek 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 (better known as Surbana Jurong) said the group’s master planning project had ended in 2022, that it did not hold ownership or participate in operations during the project, and emphasized that the group has robust compliance processes. The spokesperson added: "We currently have no ongoing projects with Prince Holding Group or its related entities."

The Ascott Ltd., the lodging arm of Temasek-backed CapitaLand Investment Ltd., was commissioned by Canopy Sands Development Co. in 2024 to provide hotel management services for two hotels in Cambodia.

An Ascott spokesperson said the group does not hold any equity in the above hotels and emphasized that it conducts thorough due diligence on business partners. Currently, Ascott is "assessing the latest developments and will take measures in accordance with applicable sanctions and legal regulations."

In addition, transaction records reviewed by Bloomberg show that Chen Zhi purchased a penthouse in the luxury Gramercy Park condominium near Singapore’s Orchard Road shopping district for S$17 million (about $13 million); his associate, Cambodian citizen Li Thet, purchased a unit in the nearby Boulevard Vue condominium for S$18.2 million.

As early as 2024, Prince Group had issued statements on its website denying multiple media reports of alleged money laundering and criminal activities, but as of October 16, these rebuttal statements were no longer accessible. Prince Group has not yet responded to requests for comment.

Patricia Hurtado and Kai Schultz also contributed to this article.