Treasury Sanctions Cambodian Tycoon and Businesses Linked to Human Trafficking and Forced Labor in Furtherance of Cyber and Virtual Currency Scams
…Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning Cambodian businessman Ly Yong Phat (Ly), his conglomerate L.Y.P. Group Co., LTD (L.Y.P. Group), and O‑Smach Resort for their role in serious human rights abuse related to the treatment of trafficked workers subjected to forced labor in online scam centers. OFAC is also designating Cambodia-based Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel for being owned or controlled by Ly….
According to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and its September 2023 alert to U.S. financial institutions and the broader public, confidence scammers leverage fictitious identities and elaborate narratives to develop trusted relationships and deceive the victim. In many cases, this involves convincing victims to invest in virtual currency, or in some cases, over-the-counter foreign exchange schemes, all with the intent of defrauding them of their funds….
Local authorities have conducted repeated rescue missions at O-Smach Resort, including in October 2022 and March 2024, freeing victims of various nationalities, including Chinese, Indian, Indonesian, Malaysian, Singaporean, Thai, and Vietnamese. …
OFAC is also designating Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Ly…