A new report from the Humanity Research Consultancy (HRC) has revealed a shocking picture: Cambodia is becoming a global hub for transnational scams worth tens of billions of dollars – with crypto as the primary tool and senior government officials reportedly directly involved.
Crypto, Telegram, and sophisticated scam systems
According to a report published on May 16, criminal networks in #Campuchia are operating a 'vertically integrated scam industry' with a scale of up to $19 billion per year, equivalent to 60% of the country's GDP. Notably, most of this money is circulated through platforms using cryptocurrency to avoid financial controls.
A prominent name in this system is Huione Group – the parent company of Huione Guarantee, an escrow platform operating on Telegram. According to the U.S. Department of the Treasury, Huione Guarantee alone has processed over $4 billion since 2021, while the total value of transactions through Telegram that Huione manages is believed to have exceeded $24 billion. More concerning, this company has even issued its own stablecoin to evade traditional financial channels.
Senior officials accused of complicity
The report from #HRC does not hesitate to name powerful figures accused of involvement. Among them is Hun To – the cousin of Cambodian Prime Minister Hun Manet – who currently sits on the board of Huione Group. Another name mentioned is Deputy Prime Minister Sar Sokha, also noted as a co-investor in one of the largest scams in the country.
The author of the report – Mr. Jacob Sims, an expert at Harvard University – stated: 'Cambodia is becoming the global hub for modern scams using cryptocurrency.' According to him, the government of this country has 'systematically and covertly' supported money laundering, human trafficking, and blockchain-based scams.
From romance scams to 'fattening pigs' with crypto
Huione Guarantee has been identified as a money laundering center for various types of scams, particularly romance scams and the 'pig butchering' model – a sophisticated form of fraud where victims are 'fattened up' by a fake relationship before being tricked into investing all their assets into fraudulent crypto projects.
According to blockchain expert Deddy Lavid, CEO of Cyvers: 'Crypto is the ideal payment method for this type of scam due to its anonymity, ease of cross-border transactions, and lack of centralized control.'
Telegram recently banned accounts and channels related to #HuioneGuarantee , now renamed Haowang Guarantee, after being accused of involvement in money laundering and large-scale fraud.
Widespread global concern
Not limited to Cambodia, criminal organizations are expanding this model to Africa, the Middle East, and Latin America, according to a recent report from UNODC. From major cities like Phnom Penh, scams have spread to remote provinces like Koh Kong, Bavet, and Pursat, where many new complexes have been built since 2022 to serve illegal activities.
Linking to the crypto market
The case highlights a disturbing reality: cryptocurrency is being abused to serve transnational scam networks, negatively affecting the reputation of the entire industry. With colossal trading volumes operating beyond control, the question arises: how will major exchanges, including Binance, respond to protect users and the industry from such scandals?
Risk Warning
The cryptocurrency market always carries many risks, including scams, asset loss, and legal violations. This article does not intend to recommend investment. Users need to exercise caution, verify information, and only engage in trading on reputable platforms that are clearly regulated.
