Prince Group Joint Interim Liquidators: Chinese Victims May File Claims, Over 90,000 BTC Previously Flowed Through Affiliated Entities

on October 28, citing Caixin, following the arrest of Chen Zhi, the head of Cambodia’s Prince Group, various jurisdictions have successively initiated proceedings to dispose of assets related to the Prince Group. Regarding the 30 British Virgin Islands (BVI) entities under Chen Zhi’s actual control, local courts have appointed Joint Provisional Liquidators (JPLs) to investigate and preserve corresponding assets. Bankruptcy proceedings in the British Virgin Islands are collective in nature; claim eligibility is not determined by nationality or jurisdiction, allowing potential victims from any jurisdiction to file claims. This means that victims of telecommunications and internet fraud in China may also submit claims at some point in the future.

According to reports, the liquidation list comprises 30 BVI companies, including Prince Global Group Ltd., most of which are actually controlled by Chen Zhi, whereas the U.S. Treasury’s sanctions list only names 28 BVI companies. Furthermore, “the scope of liquidation is not determined solely by sanctions.” Two unsanctioned companies on the liquidation list, Amber Hill Ventures Limited (“AHV”) and Lateral Bridge Global Limited (“LBG”), were referenced in U.S. legal proceedings. They belong to an extensive network associated with the Prince Group and have been alleged to serve no practical purpose beyond money laundering. Prosecutors stated that of the over 120,000 bitcoins seized in the United States, more than 90,000 flowed through AHV, LBG, and another Cayman Islands-registered entity, Future Technology Investment; Fan Yang serves as chairman and shareholder of AHV, and Minyi Tang serves as chairman and shareholder of LBG. The two are designated as “Conspirator 6” and “Conspirator 7” for Chen Zhi in the U.S. indictment. Regarding compensation claims from victims of telecom and internet fraud, a claims filing and distribution process has not yet been established. If liquidation procedures are later initiated and sufficient funds exist to distribute to creditors, the liquidators will establish a claims procedure, adjudicate the claims, and make distributions in accordance with British Virgin Islands bankruptcy law.