KUALA LUMPUR (Nov 12): Cambodia-based conglomerate Prince Group has denied allegations linking the group, as well as its founder and chairman Chen Zhi, to a global cryptocurrency investment scam network.
Last month, the US Department of Justice (DOJ) charged Chen with wire fraud and money laundering conspiracies for allegedly directing forced-labour scam compounds across Cambodia that defrauded victims globally, including in the US. The US authorities also seized about US$15 billion (RM63.35 billion) worth of bitcoin, believed to be proceeds from the alleged schemes.
In response, Prince Group said in a statement posted on its website on Tuesday (Nov 11) that it “categorically rejects the notion that it or its chairman Chen has engaged in any unlawful activity”, describing the allegations as “baseless and aimed at justifying the unlawful seizure of assets worth billions of dollars”.
“Nonetheless, these unfounded allegations, amplified by media reports repeating these and other unverified claims, have caused undue harm to thousands of innocent employees, partners and communities whom the group serves,” the conglomerate said.
The group further added that it remains committed “to integrity, responsible investment, and sustainable economic growth across the region”.
“For over a decade, the group has operated transparently and in compliance with all applicable laws, as will be clear when all of the evidence is presented.
“We have engaged a best-in-class team, led by lawyers from Boies Schiller Flexner LLP, and we are confident that when the facts come out, the Prince Group and its chairman will be fully exonerated”.
The group — whose businesses span real estate development, financial services and consumer services — counts Prince Real Estate Group, Prince Huan Yu Real Estate Group and Prince Bank among its key units in Cambodia.
In its Oct 27–Nov 2 issue, The Edge Weekly reported that several Malaysians served on the board of Prince Bank, including former Bank Negara Malaysia governor Tan Sri Muhammad Ibrahim and Liong Khai Sim, who previously held senior finance roles at Maybank Group.
Neither the individuals nor the bank have been directly linked to any crime. However, the US Department of the Treasury stated on Oct 14 that criminal proceeds from Prince Group have helped fund its legitimate-looking businesses, including Prince Bank. Chen is the bank’s majority shareholder.