Cambodian Senator Sanctioned for Crypto Scams and Human Trafficking Linked to Global Criminal Network
Victims were lured with false job offers, had their phones and passports confiscated, and were forced to participate in scam operations. They were used in crypto scams, specifically through a fraudulent practice called "pig butchering
U.S. Treasury Imposes Sanctions on Cambodian Senator and His Businesses Involved in Crypto Scams and Human Trafficking
The Office of Foreign Assets Control (OFAC) of the U.S. Treasury has imposed sanctions on Cambodian Senator Ly Yong Phat and his businesses, including L.Y.P Group and O-Smash Resort, due to their involvement in crypto scams and human trafficking. Investigations revealed that these companies played a key role in these illicit operations. Victims were lured with false job offers, had their phones and passports confiscated, and were forced to participate in scam operations. They were used in crypto scams, specifically through a fraudulent practice called "pig butchering," where they built fake relationships with unsuspecting targets to convince them to invest in fraudulent cryptocurrency schemes. Those who attempted to escape were tortured. Local authorities rescued victims from various countries, including China, India, and Indonesia, during missions conducted from October 2022 to March 2024.
OFAC Targets Cambodian Hotels Linked to Human Trafficking and Crypto Fraud
OFAC also sanctioned several Cambodian hotels for their connection to Ly Yong Phat. These hotels – Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel – played a role in human trafficking operations. The U.S. Department of State's 2024 Trafficking in Persons (TIP) Report highlighted widespread corruption and official complicity in Cambodia, which allowed these crimes to flourish. The report also highlighted how these trafficking networks operated with little interference from law enforcement. While some raids were conducted, the enforcement efforts were often selective and politically motivated. Multiple rescue missions managed to free victims trapped in these trafficking rings.
In July, Tether froze $28 million USDT after discovering its connection to crypto fraud and human trafficking in Cambodia. Investigators quickly traced these funds back to the Huione Group, which has close ties to Cambodia's ruling Hun family. Additionally, the Huione Group faces accusations of generating $11 billion through a range of illegal activities, including crypto scams and trafficking operations.
