Key Facts
- ✓ Prince Bank has been placed under liquidation in accordance with the laws of the Kingdom of Cambodia.
- ✓ The bank was founded by accused scam boss Chen Zhi.
- ✓ Chen Zhi has been indicted by the United States over a multibillion-dollar fraud.
- ✓ Chen Zhi has been extradited to China.
- ✓ Prince Bank has been suspended from providing new banking services, including accepting deposits.
Quick Summary
The National Bank of Cambodia has officially ordered the liquidation of Prince Bank. The financial institution was founded by Chen Zhi, an individual accused of orchestrating a massive scam operation.
Chen Zhi faces serious legal challenges, including an indictment by the United States regarding a multibillion-dollar fraud scheme. Following these charges, he was extradited to China. The central bank confirmed the liquidation order was issued on Thursday. Furthermore, Prince Bank has been suspended from all new banking activities. This includes the critical function of accepting deposits from the public. The action is taken in strict accordance with the laws governing the Kingdom of Cambodia.
Central Bank Orders Liquidation
The National Bank of Cambodia (NBC) has taken decisive action against Prince Bank. On Thursday, the central bank released a formal statement regarding the institution's status. According to the statement, Prince Bank "has been placed under liquidation in accordance with the laws of the Kingdom of Cambodia". This move effectively begins the process of winding down the bank's operations.
The liquidation order follows a period of regulatory scrutiny. The bank's founder, Chen Zhi, has been the subject of international legal attention. The connection between the founder's legal issues and the bank's dissolution highlights the regulatory risks facing financial institutions tied to criminal allegations. The NBC's decision serves as a regulatory response to these developments.
"Prince Bank "has been placed under liquidation in accordance with the laws of the Kingdom of Cambodia""
— National Bank of Cambodia
Founder's Legal Troubles 🚨
Chen Zhi is the central figure in the controversy surrounding the bank. He has been identified as an accused scam boss. The legal proceedings against him involve significant financial crimes. Specifically, he has been indicted by the United States government.
The charges relate to a multibillion-dollar fraud. Following the indictment, Chen Zhi was extradited to China. This extradition marks a critical step in the international legal process. The allegations against Chen Zhi are severe, involving massive financial deception. These events have cast a shadow over the bank he established.
Operational Suspension Details
In addition to the liquidation order, Prince Bank faces immediate operational restrictions. The National Bank of Cambodia has suspended the bank from providing new banking services. This suspension is a protective measure to prevent further financial exposure.
The specific services suspended include:
- Accepting new deposits
- Providing new banking services
- Issuing new financial products
These restrictions effectively freeze the bank's ability to grow its liabilities or engage in new business activities. The focus now shifts to the orderly winding down of the institution's existing affairs.
Conclusion
The liquidation of Prince Bank represents a significant enforcement action by the National Bank of Cambodia. Triggered by the indictment and extradition of founder Chen Zhi, this move protects the integrity of the financial sector. The suspension of banking services ensures that no further deposits are accepted. As the liquidation process proceeds under Cambodian law, the case serves as a stark reminder of the consequences of alleged financial crimes on an international scale.
"Prince Bank has been "suspended from providing new banking services, including accepting deposits and providing...""
— National Bank of Cambodia
