(Nov 13): 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 US Treasury Department 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 ($19.51 billion) in bitcoin he controlled.
Following the US action, Singapore authorities in late October seized more than $150 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 Ltd, a logistics business called Capital Zone Warehousing Pte Ltd, and two other private companies: Skyline Investment Management Pte Ltd and Citylink Solutions Pte Ltd.
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.
See also: KKR, Singtel group seek US$3.8 bil loan for STT GDC buyout
“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, the managing director of Fervent Chambers LLC.
Malaysia-based Maybank, UK-based Revolut and the Singapore Police Force did not immediately respond to requests for comment.
See also: Singapore cuts tax breaks for Prince Group-linked family offices
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 also 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.
Uploaded by Tham Yek Lee
