On the surface, Cambodia looks like any other Southeast Asian country-busy markets, temples, and beaches. But beneath that, there’s a hidden economy worth billions, built on lies, coercion, and cryptocurrency. Since 2019, the National Bank of Cambodia has officially banned all cryptocurrency transactions. Yet, underground crypto trading didn’t disappear. It exploded.

The Ban That Made It Worse

In 2019, the National Bank of Cambodia issued Directive No. 1125, declaring that no one could legally buy, sell, or trade crypto. Banks were told to cut off any links to digital assets. At first, it seemed like a smart move. Cryptocurrency was seen as risky, unregulated, and dangerous. But instead of stopping the flow of money, the ban created a perfect storm.

With no legal channels, people turned to the shadows. And in the shadows, organized crime moved in.

By 2021, criminal groups had turned Cambodia into a global hub for crypto fraud. They didn’t just trade crypto-they built entire cities around it. Scam compounds, disguised as hotels and tech parks, popped up in Sihanoukville, Chrey Thom, and other coastal towns. These weren’t offices. They were prisons.

Workers-many lured with fake job offers from China, Myanmar, and even the U.S.-were trafficked into these compounds. If they refused to scam people online, they were beaten. If they tried to escape, they were locked up. Their job? To convince strangers on Telegram and Facebook that they could double their money in crypto. And they did. Billions of dollars worth.

Who Runs This? The Prince Group and Huione Guarantee

At the center of it all is the Prince Group. Led by Chen Zhi, this organization didn’t just run scams. It built a full criminal infrastructure. Their compounds weren’t just places to work-they were money laundering factories.

Huione Guarantee, a company registered in 2014, became the financial backbone of this empire. According to Chainalysis and the U.S. Department of Justice, Huione laundered at least $4 billion between 2021 and early 2025. That’s not a typo. Four billion dollars.

The money came from everywhere:

• $37 million from North Korean cyber heists
• $36 million from fake crypto investment schemes
• $300 million from ransomware, dark web sales, and illegal gambling

Huione didn’t just move money. It made it disappear. They used a network of five major cryptocurrency exchanges, routing funds through dozens of wallets, then converting them into cash through casinos, real estate, and fake businesses. They even had internal documents referring to “BTC laundering” and “BTC money launderers.”

And here’s the chilling part: they didn’t hide it. They bragged about it-on Telegram, in encrypted chats, even in internal training manuals. Until the world caught up.

The Global Reach: How Americans Lost $10 Billion

You might think this is a problem far away. But the victims? They’re in your neighborhood.

The U.S. Department of Justice says over $10 billion was stolen from Americans in 2024 alone. Most of it came from Cambodia.

Here’s how it worked:

Someone gets a message on WhatsApp or Facebook: “I made $50,000 in crypto last month. Here’s my proof.” The link leads to a fake platform that looks exactly like Binance or Kucoin. They deposit $5,000. Then $10,000. Then $50,000. The platform shows their balance growing. They’re excited. They withdraw. Nothing happens. The account freezes. The person who sent the message vanishes.

These aren’t random scammers. They’re employees in a factory. One worker interviewed by PANE News Lab said they worked 18-hour days, seven days a week. They had to hit daily fraud targets. Miss the target? Get slapped. Miss three? Get locked in a room with no food.

The U.S. government called this “the top form of financial crime impacting Americans now and maybe ever in history.” Jacob Sims, a Harvard fellow on transnational crime, compared its profits to the global drug trade.

How They Got Away With It for So Long

Cambodia’s weak financial system made this possible. The country ranks 128th out of 180 in Transparency International’s Corruption Perceptions Index. Banks don’t ask questions. Cash flows freely. And until late 2024, there was no real oversight.

Even after the 2019 ban, 10.63% of Cambodians still used crypto, according to Standard Insights’ 2025 report. That’s over 1.7 million people. Most of them didn’t know they were helping criminals.

The criminals exploited every loophole:

• They used Telegram to coordinate operations after their main channel was shut down in 2015
• They partnered with “illegal banks” and underground money houses that moved cash without paperwork
• They mixed crypto through multiple exchanges, making it nearly impossible to trace
• They used real businesses-casinos, hotels, restaurants-to wash the money clean

The South Korean financial authorities saw the red flags. Between 2023 and 2024, transactions between Korean exchanges and Huione jumped 1,400%. In 2024 alone, $8.9 million flowed from Korea to Cambodia. By October 2025, it was already $3.15 billion.

The Crackdown: $15 Billion Seized

On October 14, 2025, the U.S. Department of Justice filed a civil complaint against the Prince Group. They didn’t just accuse them-they went after everything.

In a coordinated operation with the U.K. and other allies, they seized $15 billion in Bitcoin-the largest asset forfeiture in U.S. history. They froze bank accounts, shut down casinos, and raided compounds.

The U.S. Treasury’s FinCEN targeted Huione directly, calling it a “one-stop crime platform.” Telegram, under pressure, shut down their last public channels. Major exchanges like Binance and Kucoin cut off all Cambodian-linked accounts.

For a moment, it looked like the end.

But the networks didn’t collapse. They adapted.

The New Game: A Regulated Facade

In late 2024, the National Bank of Cambodia changed its approach. Instead of banning crypto, they introduced Prakas B7-024-735 Prokor-a licensing system. Now, companies can apply for legal status.

On paper, this sounds like progress. In reality, it’s a cover.

Criminals are now applying for licenses. They’re setting up shell companies. They’re using legal offices to hide illegal operations. One former worker told investigators that after the new rules came out, their compound got a “business permit” and a new sign: “Golden Fortune Science and Technology.”

The same people who were running scams now have business cards. The same bank accounts that moved $4 billion now have “compliance officers.”

The U.S. Justice Department warned: “This regulatory shift has created a new layer of deception.”

What Happens Now?

The $15 billion seizure was historic. But it’s not over.

The Prince Group’s network is still active. Transactions are still flowing. The underground market is just going deeper.

Cambodia’s government says it’s cleaning up. But there’s no independent audit. No public ledger. No transparency.

Meanwhile, victims are still being recruited. New compounds are being built. New scams are being designed.

The only real hope? Sustained international pressure. More seizures. More arrests. More cooperation between countries.

Cambodia’s Central Bank Digital Currency (CBDC), first announced in 2019, could be the long-term solution. If people can use a government-backed digital currency that’s safe, fast, and legal, maybe they’ll stop turning to the shadows.

But that’s years away.

Until then, the underground crypto trade in Cambodia remains one of the most dangerous, profitable, and brutal financial operations on Earth.

How to Protect Yourself

If you’re reading this, you probably aren’t running a scam compound. But you could still be targeted.

Here’s how to stay safe:

• Never trust unsolicited crypto investment offers-no matter how convincing the screenshots look
• Verify every platform-if it’s not on Binance, Coinbase, or Kraken’s official list, it’s fake
• Don’t send money to strangers-even if they say they’re “in Cambodia” and “can help you earn”
• Report suspicious messages to your local financial crime unit or the IC3 (Internet Crime Complaint Center)
• Know the signs-if someone pressures you to act fast, hides their identity, or uses only Telegram or WhatsApp, walk away

There are no shortcuts in crypto. No magic apps. No guaranteed returns. If it sounds too good to be true, it is.