Prince Bank Suspended New Business Due to Founder Involved in Crypto Fraud, Cambodia Central Bank Appoints Audit Firm to Initiate Custody and Settlement Procedures

On January 9th, the Phnom Penh Post reported that due to the involvement of Prince Bank's founder in a major cross-border crypto scam, the National Bank of Cambodia (NBC) has officially ordered the suspension of all new operations of the bank and entrusted all its operations and assets to Morisonkak MKA auditing firm for custody and settlement.

Regarding financial arrangements during the transition period, the NBC stated in its announcement that existing depositors can still withdraw funds through normal procedures, and borrowers must continue to fulfill their repayment obligations. The NBC indicated that this move aims to maximize the protection of financial consumers' rights and maintain financial market stability.

The regulatory action was triggered by allegations against Prince Bank's founder, Chen Zhi, by U.S. authorities. The U.S. claims that Chen Zhi leads a large-scale online scam network in Cambodia, with core criminal activities involving large-scale fraud and money laundering using cryptocurrencies. These charges are directly related to approximately 127,271 Bitcoins seized by U.S. authorities (currently valued at over $11 billion).

According to a statement from the Cambodian Ministry of Interior on January 7th, the law enforcement cooperation targeting the founder of Prince Bank was initiated in response to a formal request from Chinese authorities to combat transnational crime. Currently, the bank's founder, Chen Zhi, has been arrested and deported back to China.

In summary, this incident not only demonstrates Cambodia's determination to combat transnational crimes utilizing financial systems and crypto assets but also marks an upgrade of its regulatory efforts from domestic oversight to active participation in international judicial cooperation. In domestic public opinion, this is seen as a key step for Cambodia to rebuild its financial credibility and optimize its investment environment.

This event also clearly reveals that, in the context of increasingly close international regulatory cooperation, any attempt to conceal illegal activities through complex structures faces a rapidly increasing risk of joint international crackdown. Cambodia's strict crackdown on cross-border financial crimes will further promote the reshaping of its national financial activities and investment reputation.

#陈志 #Prince Bank