- A new report claims Cambodian government officials benefit from crypto scams
- The officials either invest in infrastructure meant to empower malicious actors, or they have family ties with the threat actors
- The Cambodian-linked scam industry is equivalent to roughly 60% of the country’s gross domestic product (GDP)
A new report by Human Research Consultancy (HRC) claims that Cambodian government officials are profiting from crypto scams by working with scammers. The report noted that the officials are either investing in infrastructure designed to facilitate crypto crime, or they have family ties to those engaging in scamming activities. HRC noted that the country is progressively becoming the headquarters “of next-gen transnational fraud,” a sign that more malicious actors are likely to move their operations to Cambodia or collaborate with Cambodian crypto criminals.
Hun To, Prime Minister’s Cousin Involved
According to the report, an example of such an official is Hun To, who is involved with Huione Group, the operators of Huione Guarantee. HRC disclosed that To is the country’s Prime Minister Hun Manet’s cousin.
According to the U.S. Treasury, Huione Guarantee has helped move over $4 billion of illicit funds since 2021. Cambodia’s Deputy Prime Minister, Sar Sokha, is also named as an investor in scam compounds in the country.
The report noted that scammers are also spreading to Laos and Myanmar. According to HRC, the three countries have a combined “cybercriminal labor force [that] easily exceeds 350,000 people.” HRC revealed that Southeast Asia is becoming an epicenter of regional scam syndicates that have “amassed even more dangerous political power [and] regional elites are implicated neck deep.”
The report observed that the link between malicious actors, sitting politicians, and regional elites hinders conventional diplomatic engagements “to achieve foreign policy objectives or ensure domestic security.”
An $11 Billion Scam Platform Shut Down?
Haowang Guarantee, formerly known as Huione Guarantee, has been implicated in a $11 billion scam in the past. Telegram recently shut down the marketplace’s accounts and user names, forcing the platform to reportedly shut down operations.
The U.S. Treasury has also described Huione Group as a “primary money laundering concern” under the USA PATRIOT Act.
With political figures and regional elites supporting scammers, malicious actors are likely to siphon more funds from victims, as these politicians can facilitate access to personal data stored on government servers.
