Chen Zhi is accused of heading a billion‑dollar crypto‑laundering network that used “pig‑butchering” scams, shell accounts and a Singapore family office, DW Capital, to clean proceeds; U.S. sanctions and a FinCEN final rule have prompted regulatory reviews in Singapore.
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U.S. sanctions target Prince Group and associates for large‑scale crypto money‑laundering.
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The Monetary Authority of Singapore (MAS) is reviewing whether DW Capital improperly received tax incentives.
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FinCEN issued a final rule isolating Huione Group from the U.S. financial system; property and corporate ties span Cambodia and Singapore.
Chen Zhi crypto laundering: US sanctions target Prince Group’s billion‑dollar pig‑butchering network. Read COINOTAG’s detailed report on investigations, assets, and regulator actions.
By COINOTAG — Published: 2025-10-16 | Updated: 2025-10-16
What is Chen Zhi accused of in the Prince Group crypto laundering case?
Chen Zhi is accused by U.S. authorities of operating a crypto‑enabled money‑laundering syndicate that profited from large‑scale online “pig‑butchering” scams, then cleaned proceeds through shell accounts, digital wallets and a Singapore family office, DW Capital. The U.S. Department of Justice and Treasury sanctions name individuals and entities tied to these activities.
How did the alleged laundering network operate and use Singapore entities?
U.S. prosecutors describe a modus operandi where victims were lured into fraudulent investment platforms, convinced to deposit funds and then stripped of balances once trust was established. The network allegedly routed proceeds into cryptocurrency wallets and shell bank accounts, and used legitimate‑looking vehicles in Singapore — notably DW Capital Holdings Pte — to obscure ownership and seek tax incentives. Authorities cite property purchases, corporate links in Cambodia, and payments to third parties as part of the value chain.
MAS investigates DW Capital’s tax incentive claim
Singapore’s Monetary Authority (MAS) confirmed it is reviewing whether DW Capital met regulatory requirements for the 13X tax incentive it claimed. A MAS spokesperson said the regulator was “looking into whether there have been any breaches of MAS’ requirements in relation to this case.” The DW Capital entity was established in 2018 and lists Chen Zhi as founder and chairman, with Chen Xiuling named as chief financial officer since 2021 in corporate filings.
What regulatory actions have U.S. agencies taken?
The U.S. Treasury and Department of Justice imposed sanctions on Prince Group and named associates, citing proceeds from online scams and forced labor in Cambodia. The Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule that effectively cut Huione Group off from the U.S. financial system, underscoring U.S. efforts to dismantle networks that exploit virtual asset systems. These measures include asset freezes and sanctions designations that restrict U.S. persons and institutions from engaging with designated entities.
Frequently Asked Questions
Who else has been sanctioned alongside Chen Zhi?
U.S. sanctions target multiple individuals and entities tied to the syndicate, including associates based in Singapore and Cambodia. Named entities include Prince Group companies and persons identified by the U.S. Department of Justice and Treasury; official sanctions lists and statements provide the full roster of designations as released by U.S. authorities.
How is Singapore responding to allegations involving local firms and executives?
MAS said it is investigating potential breaches related to tax incentives for DW Capital. Singapore police have not publicly announced a domestic criminal probe as of the update. Companies mentioned in reporting, including 17LIVE and Temasek‑linked firms, have stated they are reviewing developments and distancing themselves where necessary. This response reflects heightened scrutiny across Singapore’s financial ecosystem.
Detailed reporting and evidence
Public filings and corporate records show DW Capital’s formation in 2018 and subsequent filings naming company officers. Real estate records cited S$17 million and S$18.2 million purchases for luxury residences linked to persons named in sanctions. Media reporting referenced communications from MAS and comments from company representatives; reporters also noted that past public rebuttals from Prince Group were removed from the company website after the sanctions were announced. Sources referenced in reporting include the U.S. Department of Justice, U.S. Treasury, FinCEN, Monetary Authority of Singapore, Bloomberg, and corporate statements from 17LIVE and Temasek‑linked entities (all cited here as plain text).
Impact on corporate and financial partners
17LIVE’s Chief Investment Officer Joji Koda stated by email that the platform “has never done business with DW Capital, Chen Zhi, or Chen Xiuling,” and that Xiuling’s appointment occurred after routine background checks. Temasek‑linked subsidiaries and CapitaLand Investment said they were reviewing contracts and compliance obligations after the sanctions were announced. These corporate responses highlight immediate reputational and due‑diligence impacts for counterparties named in coverage.
Key Takeaways
- Sanctions and enforcement: U.S. Treasury and Department of Justice sanctions target Prince Group and affiliates, with FinCEN issuing a final rule isolating Huione Group.
- Regulatory scrutiny in Singapore: MAS is investigating DW Capital’s claimed tax incentives and whether regulatory gaps were exploited.
- Reputational ripple effects: Companies and investors tied to named executives are reviewing ties; property and corporate records show significant asset movements tied to sanctioned individuals.
Conclusion
The allegations that Chen Zhi led a cross‑border crypto‑enabled laundering network have triggered coordinated U.S. sanctions and prompted regulatory review in Singapore. Documented links to DW Capital, property purchases in Singapore and corporate ties in Cambodia form the basis of enforcement actions described by U.S. authorities and reported by major outlets. Ongoing MAS and corporate reviews will determine whether regulatory safeguards were breached; COINOTAG will continue to monitor official statements and legal developments.
