Exclusive Investigation Uncovers Alleged Sanctioned Network Links to Timor-Leste Crypto Resort
A proposed luxury cryptocurrency resort near Dili airport in Timor-Leste has become the focal point of a comprehensive four-month investigation conducted jointly by the Guardian and the Organised Crime and Corruption Reporting Project. The probe centers on the mysterious AB cryptocurrency network and has uncovered alleged connections to individuals associated with the Cambodia-based Prince Group, a multibillion-dollar transnational network sanctioned by US authorities for alleged money laundering and fraud operations.
Empty Promises and Unbuilt Dreams
Promotional materials from June last year painted a picture of a futuristic development featuring luxury villas overlooking aquamarine seas, positioned as a world-first crypto resort where technology elites could gather in opulent surroundings. The marketing promised that a percentage of profits would be directed toward philanthropic causes in one of the world's poorest nations.
However, when investigators visited the proposed site in Tasi Tolu, Dili, in February, they found only an empty plot dotted with shrubs, separated from Dili airport by a barbed-wire fence. The stark contrast between promotional promises and reality has raised significant questions about the project's true intentions and funding sources.
Sanctioned Individuals and Their Connections
The investigation has revealed that three individuals previously involved with the Timor-Leste resort project - Yang Jian, Yang Yanming, and Shih Ting-yu - were sanctioned by US authorities in October for their involvement in a separate luxury resort development in Palau connected to Prince Group. US authorities allege that company controlling the Palau resort was controlled by Prince Group founder Chen Zhi.
Yang Jian was listed as the majority shareholder of AB Digital Technology Resort LDA when it was registered in Timor-Leste in June 2025, but was removed from company records just days after the US sanctions were announced. Yang Yanming and Shih Ting-yu were hired to work on the Timor-Leste project but were subsequently dismissed following the sanctions.
When contacted, Shih confirmed working for Yang Yanming but denied any knowledge of the Timorese resort project or any connection to Prince Group. Yang Yanming expressed shock at the sanctions, stating the allegations lacked sufficient factual basis and that he had been inadvertently drawn into the matter. He denied any association with Prince Group, describing his only interactions with Chen Zhi as casual dinners and conversations about cigars.
The Prince Group Sanctions and Allegations
Prince Holding Group was sanctioned by the US Treasury in October last year for allegedly operating large-scale online scam operations across Southeast Asia. The group's founder, Chen Zhi, was indicted by US authorities for alleged wire fraud conspiracy and money laundering conspiracy, with billions of dollars in bitcoin seized.
US authorities allege that Prince Group ran compounds reliant on human trafficking and modern-day slavery, where industrial-scale cyber fraud operations targeted victims worldwide through sophisticated scams. In dramatic scenes in January, Chen was escorted from a plane by black-clad Swat officers after his extradition to China, though the specific charges he faces there remain unclear.
Prince Group has previously denied the US accusations, calling them baseless and aimed at unlawfully seizing billions of dollars. The group maintains that when facts emerge, both the organization and its chairman will be fully exonerated.
Timor-Leste's Vulnerability to Transnational Crime
The investigation comes amid growing concerns about transnational crime networks expanding their operations into vulnerable nations. Last year, the United Nations issued warnings about the risk of scam networks infiltrating Timor-Leste, while Ágio Pereira, Timor-Leste's Minister of the Presidency of the Council of Ministers, published an extraordinary open letter warning that the country risked becoming "an amusement park for transnational crime syndicates."
Pereira claimed that "suitcases full of dirty money" were being ferried into the country and that politicians were under pressure to remain silent about criminal activities. He called on national leaders to unite against criminal networks that "think they have bought our nation."
In November, a group of Timor-Leste civil society leaders sent a letter to Prime Minister Xanana Gusmão expressing alarm about claims that crime networks had "infiltrated national institutions through collusion with corrupt officials." The letter called for immediate action, including reviewing and canceling all diplomatic and work passports issued to non-citizens and launching an independent international investigation.
The Businessman and the Diplomatic Passport
At the center of the resort project stands businessman Lin Xiaofan, better known in Dili as "Frank." Lin presented himself as a representative of the AB Charity Foundation and as the face of the proposed AB resort. Despite his prominent role, Lin's name does not appear as a shareholder in the resort company or as a director of the Irish AB Foundation.
President José Ramos-Horta, a Nobel Peace Prize laureate and one of 28 senior advisers to the AB Foundation established in Ireland, granted Lin a diplomatic passport in July. The passport came with the title of special adviser to the Timor-Leste president on economic and commercial affairs, and social and humanitarian issues in the Asia Pacific.
Ramos-Horta explained that for investors, a diplomatic passport symbolized "prestige" and he had been happy to oblige if Lin could be "helpful in terms of attracting investment." The president emphasized that he had not benefited personally and was motivated solely by advancing his developing nation's interests.
However, the granting of diplomatic credentials to a businessman in a non-honorary consul role was described as "highly unusual" by a Timorese source. Such passports typically grant holders customs and visa privileges.
Unraveling the AB Network Mystery
The investigation encountered numerous mysteries while attempting to unpick the wider AB ecosystem. All promotional material for the planned Timor-Leste resort has been deleted from the AB website, and social media posts promoting the project have been removed. An explanatory chart appeared on the website after investigators began making inquiries, mapping out the roles of various AB entities.
The AB network comprises several entities including AB DAO (a decentralized autonomous organization), AB Chain (an open-source blockchain network), and two separate AB Foundations registered in Ireland and the Cayman Islands. Bertie Ahern, former Taoiseach of Ireland, serves as co-director and chairman of the Irish AB Foundation but denied knowledge of any plans in Timor-Leste or donations made in the foundation's name when contacted.
According to Jacky Sui, a Chinese businessman who describes himself as the AB ecosystem's "initiator," any proposed involvement of the AB DAO network in the resort project has now been scrapped. Sui emphasized that their core work focuses on blockchain infrastructure rather than resort development or real estate projects.
Presidential Doubts and Future Concerns
President Ramos-Horta expressed skepticism about the resort project from the beginning, describing it as "a bit in their imagination." He noted that Lin and the foundation had "never presented even any serious plans, business plans, feasibility studies, nothing" to convince him the resort would proceed.
The president acknowledged moments of doubt about Lin, particularly after hearing of the resort's alleged links to individuals associated with Prince Group. In messages relayed to Lin via an aide, Ramos-Horta warned him not to "play games," questioning whether the resort involved "clean money" or served as a money laundering operation.
"Is it really a resort, or just talk?" Ramos-Horta asked pointedly. He emphasized his commitment to protecting Timor-Leste from exploitation by malign actors, stating: "I lost brothers in the fight for independence and so many Timorese died for this country to be free. I don't want this country to be overrun by criminals."
Lin, for his part, denied any connection with Prince Group or involvement in criminal activities, describing the resort project as a "normal commercial activity" conducted within legal frameworks. He stated that he had "always despised those who run scam compounds" and emphasized his work to bring investment to Timor-Leste.
Broader Implications for Regional Security
The investigation highlights broader concerns about the expansion of scam operations across Southeast Asia. Experts warn that scam operators are looking further afield for vulnerable targets as crackdowns increase in traditional hubs. For Australia, there are significant risks if scam operations establish footholds in neighboring states.
Professor Michael Leach of Swinburne University of Technology noted that "twenty years of regional foreign policy warns of the worst-case scenario that neighbouring states become havens for international crime." He emphasized that Timor-Leste remains "a state that is still emerging from a difficult history," making it potentially vulnerable to criminal exploitation.
As the investigation continues, questions remain about the true purpose of the proposed resort and whether it represents legitimate investment or serves as a front for more nefarious activities. The case underscores the challenges facing developing nations as they balance economic development with protection against transnational criminal networks seeking new operational bases.
