Investigation into Timor-Leste Crypto Resort Uncovers Empty Plot, Alleged Connections
A joint investigation by the Guardian and Organised Crime and Corruption Reporting Project (OCCRP) has closely examined the proposed AB Digital Technology Resort in Timor-Leste.
The project, initially promoted as a luxury crypto resort, was observed as an empty plot of land during a visit in February, despite promotional materials from June last year.
The investigation identified alleged connections between three individuals involved with the resort project and the Cambodia-based Prince Group. The Prince Group is a transnational network accused of money laundering and fraud through scam operations, which US authorities allege involve human trafficking and violence. The AB network is not accused of criminality, and the three individuals were subsequently removed from the project.
Prince Group Sanctions and Allegations
The US Treasury sanctioned Prince Holding Group in October last year for allegedly operating large-scale online scam operations across Southeast Asia. Prince Group's founder, Chen Zhi, was indicted by the US for alleged wire fraud conspiracy and money laundering conspiracy, leading to the seizure of billions of dollars in bitcoin.
US authorities allege the group operated compounds where cyber fraud operations targeted victims globally, often through "pig-butchering" scams.
Prince Group has denied the US accusations, stating they are baseless. Chen Zhi was extradited to China in January.
Three individuals involved in the Timor-Leste resort project—Yang Jian, Yang Yanming, and Shih Ting-yu—were also sanctioned by US authorities in October for their involvement in another Prince Group-connected real estate development in Palau. They have not been charged. Yang Jian was listed as the majority shareholder of the AB Digital Technology Resort LDA but was removed after the sanctions. Yang Yanming and Shih were hired for the Timor-Leste resort but dismissed post-sanctions. Both deny involvement with Prince Group or the Timor-Leste project, or engaging in illegal conduct.
Timor-Leste's Vulnerability to Crime
The UN issued a warning in 2023 about unnamed scam networks potentially infiltrating Timor-Leste.
Ágio Pereira, Timor-Leste’s Minister of the Presidency of the Council of Ministers, expressed concerns that the country is at risk of becoming a "park for transnational crime syndicates."
Timor-Leste legalized offshore online gambling in April 2024, attracting investors, but also raising concerns about an influx of transnational crime. Civil society leaders have urged the prime minister to review diplomatic and work passports issued to non-citizens and conduct an international investigation into alleged infiltration of national institutions.
Frank Lin's Involvement and Presidential Support
Lin Xiaofan, known as "Frank" and presenting himself as a representative of the "AB Charity Foundation," was a key figure in the AB Digital resort project. He is not accused of criminality or being a member of Prince Group. Timor-Leste President José Ramos-Horta stated he had interactions with Lin, who sought to do business and facilitated donations to the country, including laptops and vitamins.
Ramos-Horta, who is a senior adviser to the AB Foundation in Ireland, granted Lin a diplomatic passport and the title of special adviser, intending to attract investment. Lin denied holding formal positions in AB entities, stated his resort shares were held by a friend, and denied involvement with organized crime or Prince Group. He stated he dismissed sanctioned associates immediately.
President Ramos-Horta later expressed skepticism about the resort project's legitimacy and whether it involved "clean money," stating he would cancel Lin's diplomatic passport if links to Prince Group were proven.
Untangling AB Entities
Promotional material for the Timor-Leste resort has been removed from the AB website. The investigation identified several AB entities: AB DAO, AB Chain, and two AB Foundations (one in Ireland, one in the Cayman Islands).
Bertie Ahern, co-director and chairman of the Irish AB Foundation, denied knowledge of donations or plans in Timor-Leste, stating the foundation had not commenced operations.
A Memorandum of Understanding (MOU) between AB DAO, the Irish AB Foundation, and the Timorese resort company, which stipulated profit sharing, was terminated in November following the sanctions. Jacky Sui, describing himself as an "initiator" of the AB ecosystem and a friend of Lin, stated that AB DAO's core work is blockchain infrastructure, not resort development, and any proposed involvement in the resort has been removed.