How a Crypto Scam Empire Infiltrated Singapore's Elite Financial Circles

A major investigation has exposed how Chen Zhi, chairman of Prince Holding Group, allegedly operated Asia’s largest cryptocurrency fraud network while simultaneously establishing DW Capital Holdings Pte—a Singapore family office claiming special tax privileges. The scheme represents a significant breach in Singapore’s regulatory oversight, prompting urgent reviews from the Monetary Authority of Singapore (MAS).

The Billion-Dollar Scam Operation

US prosecutors revealed this week that Chen Zhi and associates, including three Singapore citizens, face sanctions for laundering billions generated through elaborate “pig butchering” schemes. This fraud mechanism operates by deceiving victims into depositing funds on counterfeit investment platforms, then draining accounts once balances accumulate sufficiently.

The criminal network leveraged cryptocurrency infrastructure to obscure transaction trails through shell accounts and digital wallets, demonstrating sophisticated money-laundering capabilities. The US Treasury’s Financial Crimes Enforcement Network (FinCEN) already severed Huione Group—a related Cambodia-based operation—from American financial channels entirely, citing persistent illegal crypto market involvement.

DW Capital’s Tax Incentive Claims Under Scrutiny

The 2018 establishment of DW Capital Holdings Pte by Chen Zhi as founder and chairman, with Chen Xiuling serving as chief financial officer since 2021, raises critical questions about Singapore’s vetting procedures. The family office reportedly claimed entitlement to a 13X tax incentive from Singapore’s regulatory authorities.

Following Bloomberg’s inquiries, MAS acknowledged an active investigation: “We are looking into whether there have been any breaches of MAS’ requirements in relation to this case.” The statement underscores how Chen’s organization potentially exploited regulatory gaps within one of the world’s most stringent financial jurisdictions.

Institutional Entanglement and Reputational Fallout

The scandal extends beyond direct financial operations into Singapore’s corporate ecosystem. Chen Xiuling held an independent director position at 17LIVE Group Ltd., a Temasek Holdings-backed live-streaming platform that completed Singapore Exchange listing in December 2023. She resigned immediately following the US sanctions announcement.

17LIVE’s Chief Investment Officer clarified that Xiuling underwent routine background checks during the de-SPAC merger process, and the platform maintains no business relationships with DW Capital or Chen Zhi. Temasek, which controls approximately 26% of 17LIVE through subsidiary Vertex Ventures, stated it learned of the allegations only through media outreach.

Real Estate Network and Property Holdings

Prince Group’s construction subsidiary, Canopy Sands Development Co., engaged SJ Group—a Temasek subsidiary—for engineering and planning services on Ream City, a $16 billion Cambodia infrastructure project. The Treasury Department identified Canopy Sands as an entity directly connected to Chen’s criminal network.

Additionally, CapitaLand Investment, a Temasek-affiliated company, contracted in 2024 to manage two Prince-branded hotels in Cambodia. The company subsequently clarified it holds no ownership interest and is “reviewing the latest developments” to ensure international sanctions compliance.

Singapore property registrations document Chen’s real estate acquisitions: a S$17 million luxury penthouse at Gramercy Park near Orchard Road, and associate Li Thet’s S$18.2 million purchase at Boulevard Vue. These transactions highlight how proceeds from cryptocurrency fraud were funneled into Singapore’s premium property market.

Regulatory Response and Future Policy Adjustments

Singapore police have not yet announced independent investigations into Prince Group operations within their jurisdiction. However, broader regulatory momentum is building. MAS announced Thursday that new cryptoasset banking regulations will be delayed until 2027, moving back the previously scheduled January 1, 2026 rollout following consultation feedback.

“We will continue to monitor developments in the cryptoasset landscape and global regulatory standards to ensure alignment and support responsible innovation,” MAS stated.

Beyond crypto-specific measures, Singapore is considering legislative action to strip directorships from individuals convicted of money-laundering offenses—a policy response triggered partly by a S$3 billion ($2.34 billion) financial scandal that damaged the nation’s standing as a trusted global financial center.

Institutional Response and Denial Retraction

Prince Group previously issued categorical denials regarding all money-laundering allegations dating to 2024, characterizing media reporting as false. These public statements have since been removed entirely from company websites, leaving no official record of prior rebuttals.

The case underscores a critical vulnerability: how sophisticated criminal operations can embed themselves within legitimate-appearing financial structures and institutional networks, circumventing traditional regulatory detection mechanisms even within jurisdictions known for rigorous oversight standards.