The U.S. Treasury has sanctioned Cambodian senator Kok An and a network of 28 entities over alleged ties to a large-scale crypto scam and trafficking-linked operation.
The U.S. Department of the Treasury said Thursday that its Office of Foreign Assets Control has targeted Kok An, a senior political figure with extensive business interests in casinos and resorts, accusing him of enabling scam centers run by organized crime groups.
How did the alleged scam network operate?
According to OFAC, several properties linked to Kok An were turned into hubs where trafficked individuals were forced to run online fraud schemes. Victims, often lured by fake job offers, were made to contact people worldwide, posing as romantic partners, before directing them to fraudulent crypto trading platforms.
Money collected through these schemes was routed through casinos and associated businesses tied to the network, allowing illicit proceeds to be laundered, the agency said.
“Treasury will continue to target fraudsters and scam centers that steal billions of dollars from hardworking Americans, no matter where they operate or how well-connected they are,” said Treasury Secretary Scott Bessent.
Sanctions announced in the action cover multiple casinos, financial firms, operators, and other entities linked to the alleged network. The measures freeze any U.S.-based assets and prohibit transactions involving U.S. persons.
Crackdown expands across Southeast Asia
Working alongside the Scam Center Strike Force, U.S. authorities paired the sanctions with criminal charges against two individuals accused of running a similar operation in Burma and attempting to establish another base in Cambodia.
Officials said enforcement efforts are now concentrated on Southeast Asia, particularly Cambodia, Burma, and Laos, regions identified as key centers for crypto-linked fraud operations.
Earlier the same day, Tether disclosed that it froze about $344 million worth of USDT connected to illicit activity, in coordination with OFAC. Authorities have not confirmed whether the freeze is directly tied to the Kok An case.
Cases like this follow earlier enforcement actions in Cambodia. In September 2024, OFAC sanctioned another Cambodian senator, Ly Yong Phat, over allegations that his business network ran cyber-scam centers using trafficked workers.
U.S. agencies have linked many of these operations to organized groups across Southeast Asia, where individuals are recruited through fake job postings and then forced into running scams under threat and abuse. Reports have documented confiscation of passports, physical violence, and coercion to meet fraud quotas.
Losses tied to crypto-related investment scams have climbed sharply, with U.S. authorities citing $3.96 billion in reported losses in 2023 alone.
