Cambodian Senator Sanctioned Over Human Trafficking, Forced Labor, and Crypto Scams
Published on September 13, 2024
- A Cambodian tycoon linked to human trafficking and forced labor was sanctioned by the U.S.
- Trafficked individuals were coerced into promoting scam investments in a resort in the country.
- Victims were reportedly lured with false job offers, only to have their phones and passports seized upon arrival.
The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Cambodian senator and entrepreneur Ly Yong Phat for allegedly engaging in serious human rights abuses related to forced labor in online scam operations.Â
The sanctions, announced on Thursday, highlight Ly's alleged involvement in trafficking workers at O Smach Resort, a facility reportedly run as a forced labor camp by scammers perpetrating fraudulent cryptocurrency and foreign exchange schemes.
Ly Yong Phat is alleged to own the L.Y.P. Group, which controls O Smach Resort, identified as a hub for forced labor where trafficked individuals are coerced into promoting scam investments.
Victims reported being misled into accepting false job offers, only to have their phones and passports seized upon arrival. They were then compelled to work in the scam operations, facing physical abuse, electric shocks, or demands for ransom if they sought help.
Cambodian authorities have executed rescue missions at the resort, freeing numerous victims, including nationals from China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam.
The sanctions require any US-held assets of Ly Yong Phat to be reported to the OFAC while prohibiting US persons from conducting business with him without explicit authorization. Financial institutions engaging with Ly or entities he controls may face penalties or other actions from the US government.
Cambodia is recognized as a hotspot for forced labor cyber scam operations, alongside the Philippines, where recent enforcement actions led to the liberation of 875 victims from a romance scam facility. Myanmar has also seen an increase in scam gangs due to limited law enforcement presence following a military coup, particularly near the Chinese border.
These scam operations have escalated to a diplomatic issue, notably affecting Chinese citizens and leading to tensions between China and regional governments. The diversification of some scam gangs into illegal casinos further complicates the situation, particularly impacting Chinese nationals due to domestic restrictions on gambling.
In recent news, the FBI warned that North Korean hackers increasingly employ sophisticated social engineering tactics to target DeFi, crypto companies, and connected entities, impersonating prominent people or entities via fake websites.
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