[SINGAPORE] An independent director of Singapore-listed 17Live Group has resigned after she was added to a US sanctions list for her alleged links with a Cambodian businessman accused of running a global scam operation involving forced labour.
Karen Chen, also known as Chen Xiuling, is among three Singaporeans and 17 Singapore-registered entities added to the US Specially Designated Nationals and Blocked Persons list.
She voluntarily resigned on Wednesday (Oct 15) from her role as an independent director of 17Live, a Taiwanese livestreaming company.
US persons and companies are banned from doing business with anyone on the list, which is regulated and maintained by the US Department of the Treasury’s Office of Foreign Assets Control (Ofac), the agency responsible for administering and enforcing economic and trade sanctions.
A report by The Business Times on Wednesday said that Chen and two other Singaporeans were allegedly involved in the business dealings of Chen Zhi, a Cambodian national and founder of Prince Holding Group, one of the country’s largest conglomerates.
He was formally accused on Tuesday by the US and British authorities with wire fraud conspiracy and money laundering conspiracy, for directing Prince Group’s operation of forced-labour scam compounds across Cambodia.
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“Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as ‘pig butchering’ scams, that stole billions of dollars from victims in the US and around the world,” according to an Oct 14 statement by US authorities.
In a filing on the Singapore Exchange on Thursday, 17Live’s board of directors said that it “has interacted with (Karen) Chen in her role as independent director”.
But the company noted that, “Besides providing oversight as a director and member of the board subcommittees, (Karen) Chen, 43, is not involved in the business and operations of 17Live.”
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It added that 17Live has never done business with Karen Chen, the company she works in – DW Capital Holdings – or Chen Zhi, founder and shareholder of DW Capital.
DW Capital is an appointed fund manager for single family offices in Singapore with assets under management of S$60 million, according to its website. Karen Chen, an experienced auditor with more than 10 years experience, is listed as its chief financial officer.
US authorities claim Karen Chen oversees Prince Holding’s companies in Mauritius, Taiwan and Singapore. The authorities added that she is listed in corporate filings as the ultimate owner of several entities controlled by the group, which share the same Singapore address.
According to BT, Karen Chen is a director, company secretary, or both, in all 17 Singapore-registered companies targeted by the sanctions.
Shares of 17Live closed at S$0.87 on Thursday, down 7 per cent or S$0.065.
The company listed on the SGX in 2023 after it was acquired by Singapore’s first special purpose acquisition company, Vertex Technology Acquisition Corp, which is backed by Temasek’s subsidiary, Vertex Venture Holdings.
Karen Chen had been an independent director at 17Live since December 2023. The company said in its Oct 16 statement that it has accepted her resignation. THE STRAITS TIMES
