Cambodia has emerged as a global hub for transnational fraud schemes fueled by cryptocurrency, according to a damning report by the Humanity Research Consultancy (HRC). Valued at a staggering $19 billion annually—equivalent to 60% of the nation’s GDP—this illicit economy is alleged to operate with the tacit support of high-ranking government officials.

The HRC report, authored by Jacob Sims, a visiting fellow at Harvard University’s Asia Center, accuses Cambodia’s ruling elite of systematically aiding criminal networks that thrive on trafficked labor and the pseudonymous nature of cryptocurrencies. The findings shed light on a shadowy industry that has turned the Southeast Asian nation into what Sims calls the “global epicenter of next-gen transnational fraud” by 2025.

Huione Group: The Heart of the Scam Infrastructure

Central to the HRC findings is the Huione Group, a conglomerate deeply entrenched in Cambodia’s scam ecosystem. The report identifies Huione as a pivotal player in a vertically integrated fraud network. Huione Guarantee, one of its key subsidiaries, operates as a Telegram-based escrow platform that has processed over $4 billion since 2021, according to the U.S. Treasury.

The platform facilitates illicit transactions linked to romance scams, crypto investment fraud, and “pig butchering” operations. The latter, a particularly heinous scheme, involves emotionally grooming victims before persuading them to invest large sums under false pretenses.

Adding to the controversy is the involvement of high-ranking Cambodian officials. Hun To, a cousin of Prime Minister Hun Manet, sits on the board of the Huione Group. Meanwhile, Deputy Prime Minister Sar Sokha is named as a co-investor in one of the country’s largest scam compounds.

A Tool for Laundering and Expansion

Cryptocurrency’s pseudonymous and decentralized nature has made it a favorite tool for fraudsters. The HRC report aligns with earlier findings from the United Nations Office on Drugs and Crime (UNODC), which flagged Cambodia as a key node in a scam network expanding into Africa, the Middle East, and Latin America.

Huione Group has even launched its own stablecoin to bypass traditional financial systems and process payments more effectively. This move underscores the evolving sophistication of Cambodia’s scam infrastructure. Blockchain analytics firm Elliptic also highlighted the scale of these operations in its January 2025 report, further cementing Cambodia’s reputation as a focal point for crypto fraud.

The Human Cost of Crypto-Fueled Fraud

Behind these billion-dollar schemes lies a human tragedy. The scam industry in Cambodia thrives on trafficked labor, with victims forced to operate in scam compounds across rural provinces like Koh Kong, Bavet, and Pursat. These compounds have multiplied rapidly since 2022, following a relocation of operations from urban centers like Sihanoukville and Phnom Penh.

HRC and other watchdogs, including blockchain analytics firm Cyvers, have highlighted how cryptocurrencies exacerbate these scams. Their ease of cross-border transactions, pseudonymity, and lack of centralized oversight make them an ideal payout method for operations targeting victims worldwide.

Telegram, a platform frequently exploited for these activities, recently banned channels associated with Huione Guarantee (now rebranded as Haowang Guarantee) after allegations of fraud and money laundering surfaced.

A Call for Action Against Crypto Scams

The revelations surrounding Cambodia’s crypto-powered scam empire underscore the urgent need for international collaboration. Addressing the root causes—trafficking, government complicity, and the exploitation of blockchain technology—requires coordinated efforts between governments, tech platforms, and financial regulators.

While cryptocurrency holds immense potential for legitimate applications, its misuse by criminal networks has highlighted the darker side of digital finance. As nations grapple with the implications of Cambodia’s illicit economy, the challenge lies in striking a balance between innovation and regulation to ensure that technology serves humanity, not exploitation.

Cambodia’s $19 billion scam empire stands as a stark reminder of the complex interplay between technology, governance, and human rights. Whether the world can dismantle this web of fraud will depend on the collective resolve to confront the issues head-on.