On October 17, a large-scale bank run occurred at Prince Bank, one of Cambodia's major banks.
The scene of Taeja Complex, known as a crime hub operated by Prince Group near Phnom Penh, Cambodia. Photo by Yonhap News
According to foreign media reports, chaos erupted at major branches of Prince Bank in Phnom Penh as a large number of customers rushed to withdraw their deposits at once. At some branches, it was reported that deposit payments were temporarily suspended due to a lack of liquidity.
This bank run is believed to be a consequence of the strong sanctions imposed on October 14 by the U.S. Department of Justice and Department of the Treasury, as well as the UK government, against Prince Group and its chairman, Chen Zhi. The U.S. Department of Justice indicted Chairman Chen on charges including fraud and money laundering, and filed a forfeiture lawsuit for 127,271 Bitcoins (worth approximately 21.45 trillion won) that Chairman Chen and Prince Group allegedly laundered.
The UK government included Golden Fortune Resort World, which effectively operates the Taeja Complex-one of Cambodia's crime hubs-as a target of its sanctions. The real estate assets owned by Chairman Chen in London were frozen, and he was banned from accessing the UK financial system.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
