Singapore Regulator Under Scrutiny Over Alleged Crypto Fraud Network Operating Through Family Office

The Monetary Authority of Singapore faces questions about oversight gaps after Chen Zhi, chairman of Prince Holding Group, became implicated in one of Asia’s largest cryptocurrency fraud operations allegedly funneling billions through legitimate financial channels. Recent US sanctions revealed that Chen and multiple associates were tied to sophisticated scams operating from Cambodia, raising concerns about how such networks penetrated Singapore’s tightly regulated financial system.

The Crypto Fraud Scheme: From Victim Deception to Digital Asset Laundering

The criminal network allegedly operated elaborate investment fraud schemes commonly known as “pig butchering” scams. The operation targeted victims through fake investment platforms, convincing them to deposit capital with promises of returns, then draining accounts once balances accumulated. Authorities identified the network as utilizing cryptocurrency and shell accounts to obscure illicit proceeds.

The US Department of Justice coordinated sanctions against Chen and several Singapore citizens for laundering billions generated through these schemes, which reportedly involved forced labor operations in Cambodia. The Treasury’s Financial Crimes Enforcement Network (FinCEN) issued enforcement actions, with FinCEN cutting off related entities from the US financial system due to ongoing struggles in dismantling illegal digital asset markets.

DW Capital’s Tax Advantage: How a Family Office Claimed Regulatory Approval

In 2018, Chen Zhi and associate Chen Xiuling established DW Capital Holdings Pte, a single family office claiming to receive a 13X tax incentive from Singapore’s financial regulator. Chen Zhi serves as founder and chairman, while Chen Xiuling served as chief financial officer starting in 2021.

When contacted about the arrangement, the Monetary Authority of Singapore confirmed it is “looking into whether there have been any breaches of MAS’ requirements in relation to this case.” The statement acknowledges that regulators are now examining whether DW Capital exploited oversight gaps in the family office approval process.

Interconnected Business Dealings Across Singapore’s Elite Institutions

Investigation details reveal how the network’s legitimate-appearing operations touched Singapore’s most prominent entities. Prince Group’s construction subsidiary, Canopy Sands Development, engaged Temasek-linked firms for planning work on a $16 billion Cambodia development project. Additionally, a Temasek subsidiary contracted with the Prince-associated entities for hotel management operations in Cambodia, though the company later stated it holds no ownership and is reviewing compliance with international sanctions.

Real estate records documented substantial property acquisitions: Chen purchased a luxury penthouse in Gramercy Park for S$17 million ($13 million USD), while associates acquired additional high-value properties nearby, with another transaction reaching S$18.2 million.

Regulatory Response and Systemic Implications

Following the US sanctions announcement, Singapore police have not yet announced a formal investigation. The Monetary Authority of Singapore announced a delay in implementing new cryptoasset banking regulations to 2027, pushing back the original January 1, 2026 deadline. MAS stated it would “continue to monitor developments in the cryptoasset landscape and global regulatory standards to ensure alignment.”

Singapore is additionally considering enhanced measures to prevent individuals convicted of money-laundering offenses from holding directorships—a response to reputational concerns following a S$3-billion ($2.34 billion USD) financial scandal that challenged the nation’s standing as a global financial center.

The Broader Picture: Institutional Vulnerabilities in Compliance Frameworks

The case highlights systemic questions about how sophisticated criminal networks navigate legitimate financial infrastructure, particularly through family office structures and real estate channels. Regulators across Singapore’s financial institutions now face scrutiny over whether standard background checks and routine approval processes adequately screen for association with international sanctions targets or ongoing criminal investigations.