The United States and the United Kingdom announced they have sanctioned a global scam operator based in Cambodia. File Photo by Sascha Steinbach/EPA
Oct. 14 (UPI) — Britain and the United States announced Tuesday that they have together sanctioned a transnational scam organization operating out of Cambodia.
The U.S. Department of Treasury Office of Foreign Assets Control announced it has imposed sweeping sanctions on 146 targets within the Prince Group transnational criminal organization, a Cambodia-based network led by Cambodian national Chen Zhi that operates a global criminal empire through online investment scams.
It also announced that the Financial Crimes Enforcement Network has finalized a rule under the USA Patriot Act to sever the Cambodia-based financial services conglomerate Huione Group from the U.S. financial system. “For years, Huione Group has laundered proceeds of virtual currency scams and heists on behalf of malicious cyber actors,” the press release said.
Covered financial institutions are now banned from opening or maintaining accounts for Huione Group, the Treasury Department said.
“The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes,” said Secretary of Treasury Scott Bessent in a statement. “Treasury is taking action to protect Americans by cracking down on foreign scammers. Working in close coordination with federal law enforcement and international partners like the United Kingdom, Treasury will continue to lead efforts to safeguard Americans from predatory criminals.”
In the U.K., a $16 million mansion owned by the Prince Group has been frozen by the government. Chen Zhi and his network have invested in the London property market, including the mansion, a $133 million office building and 17 apartments in the city. The freeze blocks them from profiting from these buildings.
The organization’s scam centers in Cambodia, Myanmar and other parts of Southeast Asia use fake job ads to lure foreign nationals to compounds or abandoned casinos where they are forced to carry out online fraud or face torture, the British press release said.
The scams often involve building online relationships to convince targets to invest increasingly large sums of money into fraudulent cryptocurrency schemes.
“These sanctions prove our determination to stop those who profit from this activity, hold offenders accountable, and keep dirty money out of the U.K.,” said Fraud Minister David Hanson in a statement. “Through our new, expanded fraud strategy and the upcoming Global Fraud Summit, we will go even further to disrupt corrupt networks and protect the public from shameless criminals.”
South Korea has faced a surge of kidnappings of its citizens in Cambodia. As of August, at least 330 cases were reported, according to data submitted to the National Assembly.
In June, Amnesty International said the Cambodian government has been “deliberately ignoring” human rights abuses including slavery, human trafficking, child labor and torture by gangs. It estimated that there were at least 53 scamming compounds in Cambodia.
In September, the Treasury Department sanctioned scam centers across Southeast Asia that the agency said stole $10 billion in 2024 from Americans via forced labor and violence.