PHNOM PENH, Cambodia — Cambodia on Friday criticized recent US sanctions against one of the country’s top tycoons, who has been implicated in allegations of forced labor, human trafficking and lucrative online scams.
Cambodia’s Foreign Ministry expressed “deep regret over the unjust decision” to punish Ly Yong Phat and suggested the move could harm bilateral relations. Ly Yong Phat, one of Cambodia’s richest men, is also a Cambodian senator and a leading member of the ruling Cambodian People’s Party of Prime Minister Hun Manet.
The U.S. Treasury Department on Thursday imposed sanctions on Ly Yong Phat and five of his companies “for their roles in serious human rights violations related to the treatment of workers forced into online investment fraud.”
“Victims who are forced into virtual currency investment fraud and other online schemes are often lured by fraudulent jobs and promises of free housing,” the statement said. “Instead, they are forced to run scams for criminal organizations under appalling working and living conditions.”
Washington’s move, which blocks all of Ly Yong Phat’s assets in the United States and bans US entities from doing business with him, reflects growing concerns about cybercrime, including cybercrime. Southeast Asia and Cambodia in particular.
Cambodia has been the scene of cyber fraud, including: ‘pig slaughter’, a term referring to gaining the trust of victims via dating apps or other sites and direct them to fake investments. Cryptocurrency is often used in such schemes to make them harder to stop.
Friday’s statement from Cambodia’s Ministry of Foreign Affairs said the Finance Ministry’s action was “based on unconfirmed reports of forced labor in connection with online investment fraud,” and was also “politically motivated” and “contrary to the spirit of strengthening our bilateral cooperation and mutual trust.”
Relations between Cambodia and the US have long been strained over Washington’s criticism of alleged political repression and human rights abuses by the government, and over Cambodia’s close ties to China.
In June, US Secretary of Defense Lloyd Austin visited Phnom Penh and his meetings with Cambodian officials signaled an emerging thaw in relations between the countries.
Friday’s statement went on to say that the Treasury Department’s report “does not provide a balanced and accurate representation of Cambodia’s steadfast commitment to human rights, law enforcement, and its determined efforts to combat human trafficking and forced labor.”
Ly Yong Phat’s role in “promoting Cambodia’s socio-economic development over the decades” through his LYP group was also praised.
Although Ly Yong Phat himself has never been charged with human trafficking, a casino run by his company has been raided at least twice. Both times, authorities rescued people who had been forced to work there for call center scams and other illegal activities, The Associated Press reported in May.
Victims said they were lured to O-Smach Resort, a property owned by the LYP Group, with false employment conditions. Upon arrival, their phones and passports were confiscated and they were forced to participate in the scam.
Victims also reported being beaten, assaulted with electric shocks, demanded large ransom payments, or threatened with being sold to other online scam gangs.
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Peck reported from Bangkok.