The U.S. Treasury Department announced sanctions against a prominent Cambodian senator and 28 associated entities, alleging his involvement in an extensive crypto fraud network. Kok An, one of Cambodia’s wealthiest and most influential figures with significant holdings in resorts and casinos, was accused by the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday of orchestrating these establishments as hubs for crypto scams operated by criminal groups using human trafficking victims.
OFAC claimed that his and his associates’ casinos facilitated money laundering from these scam operations. Victims are reportedly coerced to deceive individuals globally, including Americans, posing as romantic interests to illicitly transfer funds to fraudulent crypto platforms.
“No matter their level of connection or location, we will persist in pursuing those who perpetuate fraud schemes that defraud hardworking Americans,” stated Treasury Secretary Scott Bessent.
Sanctions targeted a range of entities linked to Kok An’s purported scam network, including casinos, operators, banks, and investment firms. These measures were part of the Scam Center Strike Force initiative, a collaborative effort by multiple U.S. agencies aimed at dismantling crypto scams.
Additionally, the Strike Force announced charges against two individuals allegedly involved in running similar operations in Burma with plans to expand into Cambodia. The focus is presently on addressing scam networks predominantly located in southeast Asia, particularly Burma, Cambodia, and Laos.
Earlier Thursday, Tether, a major stablecoin provider, froze $344 million worth of its USDT tokens related to illicit activities in coordination with OFAC. The Treasury Department did not provide immediate clarification regarding the relationship between this freeze and today’s sanctions.
Previously last fall, U.S. authorities seized approximately $14 billion in Bitcoin from a crypto scam based in Cambodia, marking the largest asset confiscation by the Department of Justice.