Prince Group's Joint Provisional Liquidators: Chinese Victims May File Claims; Over 90,000 BTC Once Passed Through Affiliated Entities

October 28: According to Caixin, with the capture of Chen Zhi, the "head" of Cambodia's Prince Group, various jurisdictions have successively begun disposing of Prince Group-related assets. Local courts have appointed Joint Provisional Liquidators (JPLs) over 30 British Virgin Islands (BVI) entities effectively controlled by Chen Zhi to investigate and preserve the corresponding assets. BVI insolvency proceedings are collective in nature, and eligibility to file claims is not determined by nationality or jurisdiction—potential victims in any jurisdiction may file claims. This means that victims of telecom fraud and online gambling from China may also be able to submit claims at some point in the future.

It is reported that the liquidation list enumerates 30 BVI companies, including Prince Global Group Ltd, most of which are effectively controlled by Chen Zhi, while the U.S. Treasury Department's sanctions list names only 28 BVI companies. In addition, "the scope of the liquidation is not determined solely on the basis of sanctions." Two companies that were not sanctioned but appear on the liquidation list—Amber Hill Ventures Limited ("AHV") and Lateral Bridge Global Limited ("LBG")—are mentioned in U.S. judicial proceedings and are entities within a broad network linked to Prince Group; they are alleged to have had no practical purpose other than participating in money laundering.

Prosecutors said that of the more than 120,000 bitcoins seized by the United States, over 90,000 passed through AHV, LBG, and another entity registered in the Cayman Islands, Future Technology Investment; AHV's chairman and shareholder is Fan Yang, and LBG's chairman and shareholder is Minyi Tang. The two are referred to in the U.S. indictment as Chen Zhi's "Co-conspirator 6" and "Co-conspirator 7."

As for compensation claims by victims of telecom fraud and online gambling, no claims filing and distribution process has yet been established. If the matter later enters liquidation proceedings and there are sufficient funds to support distributions to creditors, the liquidators will, in accordance with BVI insolvency law, establish a claims process, adjudicate claims, and make distributions.