Cambodia: The Place Where a $19 Billion Scam Operated

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A recent report reveals a concerning situation: senior leaders in Cambodia are alleged to be deeply involved in a global cryptocurrency scam network tied to billions of dollars in money laundering activities and sophisticated platforms designed to evade regulatory oversight.

According to a report from Humanity Research Consultancy (HRC) dated May 16, several senior members of the Cambodian People’s Party (CPP) have been accused of facilitating and profiting from transnational scam networks based on forced labor and untraceable cryptocurrencies. The report highlights the role of Huione Group, described as the “backbone” of a large-scale integrated scam industry, with an estimated annual value of $19 billion—equivalent to 60% of Cambodia’s GDP.

Jacob Sims, the report’s author and a scholar at the Harvard Asia Center, warns: “Cambodia is at risk of becoming a global hub for new-generation transnational scam models by 2025.” He accuses the Cambodian government of “systematically and silently” enabling criminal networks to operate scam complexes, human trafficking, and cryptocurrency payment systems.

Hun To (right) is the cousin of Cambodian Prime Minister Hun Manet (middle)

Among those named is Hun To—cousin of Prime Minister Hun Manet—who is said to hold a leadership role at Huione Group, the parent company of Huione Guarantee, an escrow platform operating on Telegram. According to the U.S. Department of the Treasury, this platform has circulated over $4 billion since 2021. Additionally, Deputy Prime Minister and Minister of Interior Sar Sokha has been accused of being a co-investor in one of Cambodia’s largest scam complexes.

Cambodia – A Global Cryptocurrency Scam Hotspot

HRC’s findings align with a recent report from the United Nations Office on Drugs and Crime (UNODC), warning that scam infrastructure in Southeast Asia is spreading to Africa, the Middle East, and Latin America. Cambodia has been identified as a key link in this network, as criminal organizations shift from Sihanoukville and Phnom Penh to rural provinces like Koh Kong, Bavet, and Pursat, where new scam complexes have rapidly emerged since 2022.

HRC cites a January report from blockchain analytics firm Elliptic, revealing that Huione Group has issued its own stablecoin, allowing for illegal payments without going through traditional financial systems. Deddy Lavid, CEO of Cyvers—a blockchain analytics platform—comments: “The scale of these operations makes Cambodia a global hotspot for cryptocurrency-based scams.”

Recently, Telegram has banned multiple channels and accounts related to Haowang Guarantee (the new name for Huione Guarantee) for violating regulations on scams and money laundering.

“Pig Butchering” – A Sophisticated Scam Tactic

Huione Guarantee has been identified as the center of money laundering activities through schemes like romance scams, fake cryptocurrency investment, and particularly “pig butchering”—a form targeting victims globally. In this scheme, scammers build trust through fake romantic or business relationships, then lure victims into investing large sums based on misleading information.

Lavid shared with Decrypt: “Unfortunately, cryptocurrency is becoming a popular tool for cashing out in pig butchering scams, thanks to its anonymity, ease of cross-border transfer, and lack of centralized control.”

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