In a statement on January 8, the Central Bank of Cambodia (NBC) said that Prince Bank has been "put under liquidation in accordance with the law of the Kingdom of Cambodia".
According to NBC, this bank has been suspended from providing new banking services, including receiving deposits and providing credit.
NBC said it has appointed Morisonkak MKA auditing company as the Prince Bank liquidation unit. Prince Bank is a subsidiary of Prince Holding Group, a group founded by Chen Zhi and considered one of the largest corporations in Cambodia.
The Central Bank of Cambodia affirmed that during the liquidation process, customers who are depositing money at Prince Bank can still withdraw money normally, provided that they fully prepare documents according to regulations. Regarding loans, NBC emphasized that borrowers must continue to fully fulfill their debt repayment obligations as usual.
Chen Zhi, born in China, was imposed sanctions by the US and Britain in October last year on charges of directing cyber fraud activities. According to accusations from Washington and London, these networks use hundreds of human trafficked workers and force them to work in complexes in Cambodia.
Cambodian authorities said that Chen Zhi was arrested and extradited to China on January 6 at the request of Beijing. Since this information was announced on January 7, Chinese officials have not made official comments. The US Department of Justice also declined to comment on the arrest and extradition campaign.
In the US, Chen Zhi has been prosecuted on charges of telecommunications fraud and money laundering. If convicted, Chen Zhi could face up to 40 years in prison. The charges related to about 127,271 Bitcoins seized by the US, with an estimated value of more than 11 billion USD at current prices.
Prince Group has repeatedly rejected the accusations, affirming that it is not related to the illegal activities mentioned in the US prosecution file.
