A damning new report from the Humanity Research Consultancy (HRC) has revealed that Cambodia is at the heart of a sprawling $19 billion global scam industry, one that is deeply intertwined with cryptocurrency. The report alleges that high-ranking government officials are not only turning a blind eye but are actively profiting from the operations of transnational fraud networks powered by crypto, human trafficking, and unregulated digital infrastructure.

The scale and organisation of this criminal ecosystem are unprecedented. According to HRC, Cambodia’s scam economy now constitutes around 60% of the nation’s GDP. With crypto as the backbone, the fraud industry exploits blockchain’s pseudonymity and the lack of centralised control, making it increasingly difficult for authorities to trace illicit funds.

Government Links and Corporate Enablers

Central to this burgeoning ecosystem is Huione Group, a conglomerate identified as critical infrastructure in what the report describes as a “vertically integrated” scam economy. One of its subsidiaries, Huione Guarantee, a Telegram-based escrow platform, has processed over $4 billion in transactions since 2021, much of it suspected to be linked to scams and money laundering.

The involvement of Cambodia’s ruling elite is particularly alarming. Hun To, cousin of the current Prime Minister Hun Manet, sits on the board of Huione Group. Meanwhile, Sar Sokha, the Deputy Prime Minister and Minister of the Interior, has allegedly co-invested in one of the country’s largest scam compounds. These affiliations point to a systematic intertwining of political power and criminal enterprise.

The report’s author, Jacob Sims, a visiting fellow at Harvard University’s Asia Center, accuses the Cambodian state of providing support “systematically and insidiously” to criminal syndicates. He asserts that the government not only tolerates but enables the trafficking of labour and laundering of stolen funds via crypto rails, allowing these scams to flourish largely unimpeded.

Expanding Global Reach

The rise of Cambodia as a central hub for crypto-driven scams isn’t happening in isolation. According to a recent UNODC report, Southeast Asia’s scam infrastructure is rapidly expanding into Africa, the Middle East, and Latin America. Cambodia, once focused primarily on Sihanoukville and Phnom Penh, is now seeing a proliferation of scam compounds in rural provinces like Koh Kong, Bavet, and Pursat. These compounds have become sophisticated centres of fraud, combining forced labour, crypto payments, and decentralised tech to create a near-impenetrable criminal network.

In parallel, Huione Group has reportedly launched its own stablecoin, which analysts believe is designed to streamline illicit transactions even further. By bypassing traditional financial channels, this stablecoin allows scam operators to move large sums quickly and anonymously.

Deddy Lavid, CEO of blockchain analytics firm Cyvers, told Decrypt, “The scale of these operations makes Cambodia a focal point for crypto-based fraud globally.” This assessment is echoed by Elliptic, another analytics firm that has tracked Huione’s growth and influence across the crypto laundering landscape.

Pig Butchering and Romance Scams

At the heart of many of these operations is a particularly cruel tactic known as pig butchering. In these scams, victims are psychologically manipulated over weeks or months by fake romantic or business partners who gradually convince them to invest in bogus crypto schemes. The name refers to the process of “fattening up” victims with emotional bonding before financially exploiting them.

Once victims are hooked, they are often directed to platforms like Huione Guarantee, where their funds are swiftly siphoned away into crypto wallets beyond the reach of regulators. The pseudonymity and cross-border ease of cryptocurrencies make them the ideal tool for these scams.

Telegram recently took action by banning accounts and channels linked to Haowang Guarantee, a rebranded version of Huione Guarantee, for violations related to fraud and money laundering. While a positive step, experts warn that such measures are temporary roadblocks in an ever-evolving scam ecosystem that is constantly adapting to enforcement efforts.

A Global Threat Fuelled by Regulatory Gaps

The Cambodian scam empire’s reliance on cryptocurrency highlights a broader global issue: the failure of international financial regulation to keep pace with technological innovation. With major players in government and industry allegedly complicit, and enforcement agencies struggling to respond, the line between state and scam has blurred dangerously in Cambodia.

The HRC’s report is not just an indictment of a single country; it’s a warning to the international community. Without swift, coordinated action to regulate crypto platforms, prosecute enablers, and protect vulnerable populations, these fraud networks will only grow more sophisticated — and more destructive.

As the world continues to embrace digital finance, Cambodia stands as a cautionary tale: when technology outpaces accountability, it becomes a weapon in the hands of the powerful and corrupt.