The US Treasury Department’s Financial Intelligence and Enforcement Service announced that it has imposed sanctions on Cambodian senator and businessman Ly Yong Phat, including his companies.
Allegations of Human Trafficking and Forced Labor
The Office of Foreign Assets Control (OFAC) has accused Ly Yong Phat and his companies, LYP Group and O-Smach Resort, of engaging in crypto and cyber fraud, including the forced labor of trafficked workers.
OFAC said these companies were responsible for “forced labor in online fraud centers and serious human rights violations.”
OFAC’s Statements
According to the Treasury Department, people employed to defraud cryptocurrency investors are also forced into slave labor and are victims of human trafficking.
Treasury Department: “Confidence scammers (e.g., “I’m Cancer Help”) use fictitious identities and elaborate stories to develop trusting relationships. They deceive victims in a wide variety of scenarios. In most cases, they involve conning victims into investing in cryptocurrency or, in some cases, OTC exchange schemes; all with the intent of stealing victims’ funds. These scams are largely run by criminal organizations based in Southeast Asia.”
Sanctions on Other Companies
In addition to LYP Group and O-Smach Resort, other companies directly or indirectly linked to Ly, namely Garden City Hotel, Koh Kong Resort and Phnom Penh Hotel, were also placed on the sanctions list.
The US State Department’s annual Trafficking in Persons Report (TIP), released in June, highlighted abuses in Cambodia, particularly in the towns of O’Smach and Ko Kong.
TIP Report: “Ongoing corruption and official involvement in human trafficking are widespread and endemic, leading to selective and often politically motivated enforcement of laws, preventing effective law enforcement action against human trafficking crimes, including forced labor. Traffickers force victims to work up to 15 hours a day and, in some cases, ‘resell’ them to other fraudulent operations or subject them to sexual exploitation.”
These sanctions reiterate the international community’s commitment to combating human trafficking and forced labor. The rise in cryptocurrency scams shows that such crimes are linked to human rights violations. It is crucial that Cambodia takes these allegations seriously and takes the necessary measures to prevent abuse in the region.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
