Prince Bank, one of Cambodia’s largest commercial banks, is experiencing a important bank run as customers rush to withdraw their savings. Large crowds gathered outside the bank’s main branch in Phnom Penh on October 14, 2023, adn reports indicate temporary transaction suspensions at several branches due to resulting liquidity concerns.

Sanctions Trigger crisis

The mass withdrawal follows the declaration of coordinated sanctions on October 14, 2023, by the US Department of Justice, the US Department of the Treasury, and the British government. these measures are directly targeted at Prince Group and its CEO,Chen Zhi.

Criminal Charges and Record Asset Seizure

The US justice department has formally charged Chen Zhi with fraud and money laundering. A key component of the case involves the attempted seizure of 127,271 bitcoins – valued at approximately 21.45 trillion South korean won – which authorities allege were laundered by chen Zhi and Prince Group. This represents the largest asset seizure in the Department’s history, demonstrating the scale of the alleged financial crimes.

If convicted, Chen Zhi faces a potential prison sentence of up to 40 years.

UK Government Expands Sanctions

The UK government has broadened its sanctions to include entities linked to Prince Group. Golden Fortune Resort World, which operates the Prince Compound near Phnom Penh, has been added to the UK’s sanctions list. Additionally, Jinbei Group – which manages hotels and casinos associated with Prince Group – and the digital currency platform Byex Exchange have been banned.

British authorities have also frozen Chen Zhi’s property assets located in London and have prohibited him from accessing the UK financial system, further restricting his financial activities.