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US sanctions Cambodian tycoon over crypto fraud links

US sanctions Cambodian tycoon over crypto fraud links

GrafaGrafa2024/09/13 07:20
By:Mahathir Bayena

The U.S. Department of the Treasury has imposed sanctions on Cambodian businessman Ly Yong Phat and his business empire, L.Y.P. Group, for their involvement in human trafficking and forced labor linked to cryptocurrency fraud. 

The sanctions, announced on Thursday, aim to disrupt networks engaged in severe human rights abuses by freezing U.S.-based assets and prohibiting any transactions involving the designated entities.

According to the Treasury's Office of Foreign Assets Control (OFAC), Ly Yong Phat and his businesses, including properties like O-Smach Resort, were found to be complicit in schemes that trafficked workers and forced them into labor at online scam centers. 

These operations often targeted victims to invest in virtual currencies or over-the-counter foreign exchange schemes, only to defraud them of their funds. 

Many of these scams were orchestrated by criminal organizations operating in Southeast Asia.

The FBI's Internet Crime Complaint Center has noted a sharp increase in losses related to cryptocurrency investment scams, which rose 53% from $2.57 billion in 2022 to $3.96 billion in 2023. 

These scams, often facilitated by forced labor in scam centers, exploit victims and are part of broader criminal networks aimed at financial fraud.

"Today’s action underscores our commitment to hold accountable those involved in human trafficking and other abuses," said Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith. 

The Trafficking in Persons (TIP) Report of 2024 highlighted these forced labor abuses, emphasizing that victims are often resold or subjected to physical and mental abuse by traffickers.

The sanctions block all assets of Ly Yong Phat and his associated businesses within the United States and forbid U.S. persons from conducting any transactions involving them. 

The action is pursuant to Executive Order 13818, which expands on the Global Magnitsky Human Rights Accountability Act, aimed at combating human rights abuses and corruption worldwide.

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