First auction of seized luxury bags from S$3b money laundering case closes, bringing in more than S$1.1m

SINGAPORE: A fierce 30-minute bidding war for a rare Louis Vuitton x Yayoi Kusama pumpkin bag – seized in Singapore’s S$3 billion (US$2.35 billion) money laundering case – sent its final price soaring on Sunday (Sep 20) night.

The limited-edition yellow monogram leather piece, which was a collaboration between the luxury fashion house and the Japanese artist who recently died at 97, eventually went under the hammer for an eye-watering S$87,000.

A flurry of 42 last-minute bids pushed the closing price to more than five times the auction house’s initial estimate of S$12,000 to S$16,000.

Conducted by auctioneer Hotlotz, the sale of the first tranche of 337 handbags and accessories from the high-profile money laundering case concluded on Sunday night. All of the items were sold and the total came in at more than S$1.1 million.

Like the pumpkin bag, several other lots saw strong interest from bidders.

Necklaces, bracelets and a ring from Chrome Hearts mostly scored 30 bids or more, with the final sale prices coming in at several times higher than the estimates. A diamond double cross pendant necklace sold for S$11,000, about 10 times the estimated S$1,000 to S$1,500.

Another Hotlotz auction for 286 pieces of fine jewellery seized in the case will stay open until Sep 27. Together, the two auctions were estimated to bring in between S$2.9 million and S$3.9 million in total.

The frenzied bidding stood in sharp contrast to the lacklustre reception for luxury real estate tied to the same illicit network, where not a single seized property found a buyer when put up for auction on Sep 17.

ICONIC LABELS DRAW FIERCE BIDDING

Chanel bags, which made up the largest portion of luxury bags up for sale, and the Chrome Hearts jewellery were among the most popular items. A rhinestone-studded beige goatskin Chanel mini flap bag sold for S$15,000 – about a third of the 28 bids were made on Sunday.

Loveholic founder Elaine Fung, whose firm sources for luxury items, said she expected iconic styles like the Chanel classic flap bags and Lady Dior bags to attract strong interest.

These styles are widely recognisable even among those who do not usually follow luxury fashion, she added.

“We also expected prices to be slightly above normal resale levels because of the publicity surrounding the auction. However, some bids have gone much higher than anticipated,” said Ms Fung.

For example, a Chanel classic flap in caviar leather that was on auction sold for S$13,000. Comparable pre-owned pieces generally sell for below S$10,000, she noted.

“The strong interest did not surprise us. The bid amounts did. The publicity and competitive atmosphere may be encouraging people to bid more aggressively,” said Ms Fung, adding that some bidders may also be unfamiliar with the current retail and resale prices.

Hotlotz charges a “buyer’s premium” of 20 per cent on top of the closing bid, which includes Singapore’s goods and services tax that can be waived for foreign buyers.

Towards the end of each auction, if a bid is placed in the final five minutes before a lot closes, the bidding period for that lot is extended by a further five minutes.

This continues until a full five minutes has elapsed without another bid having been placed, Hotlotz explained on its website. This is why all of the lots in an auction usually close only a few hours after the scheduled closing time.

The auction that closed on Sunday is part of a series of 15 online auctions for items from the S$3 billion money laundering case, scheduled to run from September this year to May 2027.

The assets from the money laundering case were handed over by the police to audit firm Deloitte for liquidation in August last year.

Proceeds would be paid into the government’s consolidated fund, which is similar to a bank account held by the government. According to the parliament website, Singapore's revenues are paid into this fund and it is also used to provide for government spending.