The US and UK have taken coordinated action against a Cambodia-based crime network accused of running online scamming centers that trap trafficked workers in cyber slavery and steal billions each year.
The measures target Cambodia’s Prince Group and its chairman Chen Zhi, whom US prosecutors accuse of leading a massive cyberfraud empire. The US Treasury Department said 146 individuals and entities were sanctioned, calling the network a “transnational criminal organization” involved in cyberfraud, human trafficking, and money laundering.
Officials described the move as “one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud.” They added:
By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims.
Scam compounds built on forced labor
Cambodian authorities recently found the body of a South Korean student in an area notorious for scam compounds and trafficking. Investigators suspect he was forced into labor. Traffickers promise victims high-paying jobs, confine them in compounds and, using torture, force them to participate in online fraud.
Prosecutors allege that Chen, a Chinese-Cambodian businessman, oversaw “the construction, operation, and management” of scam compounds, reports The Diplomat. These operations reportedly expanded during the pandemic, using trafficked workers from across the region.
The indictment also accuses Chen of authorizing bribes to protect his business interests and laundering illegal profits through cryptocurrency. Prosecutors allege the money was spent on luxury travel, expensive items, and rare artwork, including a Picasso.
Federal prosecutors also unsealed an indictment charging Chen with wire fraud and money laundering. He faces up to 40 years in prison if convicted. Prosecutors also seized nearly $15 billion in bitcoin—the Justice Department’s largest-ever forfeiture.
In the UK, authorities have frozen 19 London properties valued at over £100 million associated with the Prince Group, with the goal of preventing Chen and his network from accessing the UK’s financial system.
Assistant Attorney General John Eisenberg called Chen the “mastermind behind a sprawling cyberfraud empire.”
Ties to Cambodia’s ruling elite
Since receiving Cambodian citizenship in 2014, Chen has become a prominent figure in the country’s business and political circles. He has served as an advisor to both former Prime Minister Hun Sen and his son and successor Hun Manet. Chen also holds the honorific neak oknha and has donated to Cambodia’s ruling party—Cambodian People’s Party (CPP)—linked charities.
The US and UK actions have drawn renewed attention to how Cambodia’s business networks intersect with political power. The article notes that last year, similar sanctions were imposed on other high-ranking figures allegedly involved in forced labor, human trafficking, and online scams.
Although the Cambodian government has announced task forces and raids to address scamming operations, Amnesty International described the response as “grossly inadequate” and accused authorities of being “complicit.” The article says:
Amnesty alleged that more than two-thirds of the 53 scam compounds identified in its report were either not investigated by police or had continued to operate even after interventions by the Cambodian authorities. This week, South Korea’s National Security Adviser Wi Sung-lac put the number of workers in Cambodian scam compounds at around 200,000.
Cambodian Interior Ministry Spokesperson Touch Sokhak stated that Cambodia would cooperate with a formal US request but has not accused Prince or Chen of any wrongdoing. He added that the government expects sufficient evidence if authorities pursue arrest. Meanwhile, reports suggest customers at Prince Bank are struggling to access funds, signaling the first ripple effects of the crackdown.
The full effect of the sanctions remains uncertain, but experts suggest they could reshape Cambodia’s political and financial landscape now that the world is watching.
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