Singapore Financial Hub Under Scrutiny After US Sanctions Alleged $16 Billion Crypto Scam

A major criminal case is shaking Singapore’s financial community. US authorities have sanctioned the alleged head of a massive transnational criminal organization. This group is accused of orchestrating a multi-billion dollar “pig butchering” crypto scam.

The case reveals deep financial ties to Singapore. The alleged ringleader and associates established a family office and acquired millions in property there. This has prompted local authorities and major firms to review their connections.

Family Office and High-Profile Links Investigated

According to Bloomberg News, Chen Zhi and associate Chen Xiuling set up DW Capital Holdings Pte. This single family office reportedly received a 13X tax incentive from Singapore’s Monetary Authority of Singapore (MAS). The MAS is now investigating potential breaches of its requirements.

Chen Xiuling also served as an independent director for 17LIVE Group. This is a live-streaming platform backed by the state-owned investment firm Temasek. She resigned from the role following the US sanctions announcement.

Broad Network of Singapore Business Ties Uncovered

The group’s business dealings in Singapore appear extensive. A Prince Group unit appointed Temasek subsidiary SJ Group for master planning on a $16 billion Cambodian project. Another Temasek-linked firm, Ascott, was appointed to manage two Cambodian hotels.

Property records show significant personal investments. Chen Zhi purchased a luxury penthouse for S$17 million. An associate bought a nearby home for S$18.2 million. These transactions are now under scrutiny.

The unfolding investigation highlights the persistent challenges global financial hubs face in preventing illicit fund flows. This Singapore money laundering case will test the city-state’s regulatory defenses and its reputation for clean finance.

Dropping this nugget your way

What is a “pig butchering” scam?

It is a type of investment fraud. Scammers build trust with victims online before convincing them to invest in fake crypto schemes. The name comes from the practice of “fattening” a victim before stealing their funds.

Which Singapore companies are linked to the case?

The case involves links to firms like 17LIVE Group and CapitaLand’s Ascott Ltd. These companies had business relationships with entities controlled by the sanctioned individuals.

What action has Singapore’s regulator taken?

The Monetary Authority of Singapore stated it is looking into potential breaches of its requirements. This follows the US sanctions announcement and revelations about the DW Capital family office.

How much property did the group acquire in Singapore?

Transactions reviewed by Bloomberg show at least S$35 million in luxury property purchases. This includes a S$17 million penthouse and an S$18.2 million condominium unit.

What is the status of the US investigation?

US authorities have sanctioned the individuals and entities involved. They allege the group is one of the largest transnational criminal organizations in Asia, responsible for laundering billions.

Trusted Sources

Bloomberg News
Reuters
US Department of the Treasury