BREAKING NEWS: Habanos Sweden faces liquidation

The Supreme Court of the British Virgin Islands (BVI) has appointed a liquidator tasked with recovering and releasing funds to the victims of Chen Zhi. At this stage, it remains unclear exactly how many additional companies under his umbrella will be liquidated, dissolved, or sold, or whether the liquidation will be strictly limited to Elite Trading Scandinavia AB.

Published:  2026-05-25, at 18.50 am Written by: Hatem Sabbagh, publisher/editor-in-chief of Cigarrvärlden & Managing Director of Cigarrklubben CK Sverige AB. We use AI and Google Translate for translations, with some review to enhance readability. Pardon the Spanglish. PHOTO: Chen Zhis Instagram.

Disclaimer: Cigarrvärlden is owned and operated by Cigarrklubben CK Sverige AB, which also operates a cigar club and has a foot in both camps. To put it mildly. Divison and separation of operations and the editorial is explained under the section "Conflicts of Interest (in Swedish)". Cigarrvärlden operates under a ‘certificate of no legal impediment to publication conferring constitutional protection’ (utgivningsbevis). With this certificate, Cigarrvärlden enjoys a special legal status in Swedish law under the freedom of expression act. Cigarrklubben CK Sverige AB does not sell and have ever sold cigars or tobacco in any way, shape or form. 

The Downfall of Elite Trading Scandinavia (Habanos Sweden)

Elite Trading Scandinavia AB—known colloquially in the industry as Habanos Sweden—is facing liquidation. Cigarrvärlden previously revealed that the company was partially owned by Chen Zhi.

Chen Zhi was implicated in a massive cryptocurrency fraud and money laundering scheme equivalent to roughly one-third of Cambodia's GDP, where he was residing. Shortly after Cigarrvärlden published it article, the U.S. Department of Justice (DOJ) indicted Chen Zhi for crypto fraud, seizing approximately SEK 150 billion (~$14 billion USD) and placing him on the OFAC sanctions list.

The fallout for Elite Trading Scandinavia was immediate. The company’s auditor resigned prematurely on December 7th last year. And a week after The Municipality of Gothenburg revoked Elite Trading’s tobacco permit due to its ties to Chen Zhi.

The Struggle to Find an Auditor

Elite Trading has been in limbo since its auditor stepped down, having tried in vain to secure a replacement. In a filing submitted to the Swedish Companies Registration Office (Bolagsverket) in late April, a board member stated:

"The company's auditor, PwC, resigned prematurly, and despite extensive searches and inquiries, the company has been unable to retain a new auditor. While the owners intend to liquidate the company, they wish to do so in an orderly manner, which requires an auditor to be appointed."

The court-appointed liquidator approached PwC once more, noting that OFAC had granted a special license allowing the wind-down of certain business operations and the execution of necessary transactions without violating U.S. sanctions. However, on April 13, 2026, PwC formally declined, stating:

"We hereby inform you that we, Öhrlings PricewaterhouseCoopers AB, do not intend to undertake the engagement as auditor for Elite Trading Scandinavia AB."

Impending Compulsory Liquidation

Elite Trading is currently on Bolagsverket’s vacancy list—a registry for companies lacking a mandatory auditor. Two weeks ago, the company hit the critical six-month threshold. As predicted in our post-Christmas analysis, Bolagsverket is now legally authorized to initiate compulsory liquidation proceedings.

What Lies Ahead?

The full scope of the asset unwinding remains a mystery for now. It is still unclear which companies under the broader tobacco umbrella will survive, be sold off, liquidated or be spared entirely. It is entirely possible that the liquidation will only impact the Nordic entity.

However, given that the liquidator has global control over all of Chen Zhi's assets through board members of their own, the ultimate outcome is still highly uncertain. Cigarrvärlden will continue to investigate and follow this developing story closely.

Written by: Hatem Sabbagh

Footnote: Cigarrvärlden has contacted PWC in Sweden to no avail. Cigarrvälrden is seekeing representatives of Habanos Sweden for comments.

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