When Cambodia banned cryptocurrency in 2019, no one expected it to spark the rise of one of the most violent and profitable criminal enterprises in modern history. Instead of killing crypto activity, the ban created a dark, unregulated vacuum - one that organized crime groups seized with terrifying efficiency. Today, Cambodia’s underground crypto market isn’t just a loophole. It’s a fully operational, globally connected laundering machine, tied to human trafficking, forced labor, and billions in stolen funds. And despite international crackdowns, it’s still growing.
How a Ban Turned Into a Business Model
The National Bank of Cambodia (NBC) issued Directive No. 1125 in 2019, declaring all cryptocurrency transactions illegal. The goal was simple: stop financial chaos. But the result was the opposite. With no legal channels, crypto trading didn’t disappear - it went deeper underground. Criminal networks didn’t need banks. They didn’t need licenses. They needed victims.
Enter the Prince Group. This syndicate, led by Chen Zhi, built at least ten scam compounds across Cambodia, mostly in Sihanoukville and Chrey Thom. These weren’t offices. They were prisons. Workers - many lured with fake job offers from China, Myanmar, and Vietnam - were forced to work 18-hour days running crypto investment scams. If they failed to meet daily quotas, they were beaten. Some were tortured. Others were held until their families paid ransom. The U.S. Department of Justice called it "one of the largest transnational criminal organizations in Asia."
The Huione Guarantee Machine
At the heart of this empire was Huione Guarantee (also known as Huiwang Group). Founded in 2014, Huione didn’t just move crypto. It built an entire crime platform. According to Chainalysis, between August 2021 and January 2025, Huione laundered at least $4 billion. That includes:
- $37 million from North Korea-linked cyber heists
- $36 million from fake crypto investment scams
- $300 million from ransomware and dark web payments
How? They used Telegram to connect with other criminal groups, offering "one-stop crime services": fake wallets, mixing tools, and connections to underground banks. Telegram shut them down in 2015 - but they just moved to encrypted channels. Their operations were so sophisticated, they even mimicked real exchanges like Binance and Kucoin. Victims thought they were investing. They were just funding a criminal cartel.
The Global Reach: From Korea to the U.S.
Cambodia’s underground crypto market doesn’t operate in isolation. It’s wired into global crime networks. South Korean exchanges alone sent $8.9 million to Huione in 2024 - a 1,400% jump from 2023. By October 2025, that number had climbed to $3.15 billion Korean Won. Why? Because scammers in Cambodia targeted Koreans with fake trading apps, promising 200% returns. When victims sent money, it flowed straight into Prince Group’s network.
The U.S. wasn’t spared. The "Brooklyn Network," documented by TRM Labs, moved over $18 million from American victims back to Prince Group accounts between 2021 and 2022. Victims reported being contacted on WhatsApp or Facebook, told they’d "cracked the crypto code," and lured into fake platforms. Some lost $5,000. Others lost $250,000. Reddit threads from September 2025 are filled with stories of people who lost life savings - and got no help.
Regulation? More Like a Backdoor
In late 2024, Cambodia flipped its stance. Instead of banning crypto, it introduced Prakas B7-024-735 Prokor - a licensing system meant to bring crypto into the light. But the move backfired. Criminals didn’t apply for licenses. They bought them. Or bribed their way in. Huione and its partners used shell companies to get permits, then layered their illegal funds through legitimate-looking casinos, hotels, and real estate deals. The NBC’s new rules didn’t stop crime - they gave it a veneer of legality.
Meanwhile, the U.S. Treasury’s FinCEN targeted Huione directly, citing the $4 billion laundering figure with chilling precision. In October 2025, the U.S. and U.K. seized $15 billion in bitcoin - the largest forfeiture in history. It was a massive blow. But not a fatal one. Transactions with Huione kept rising into 2025. The networks adapted. They always do.
Why Cambodia? The Perfect Storm
Cambodia isn’t just a random hotspot. It’s the perfect environment for this kind of crime:
- It’s a cash-heavy economy with weak banking oversight
- Transparency International ranked it 128th out of 180 countries for corruption in 2024
- Its border with Thailand and Vietnam makes cross-border movement easy
- 10.63% of Cambodians still use crypto despite the ban - proof of deep underground penetration
Compare this to Thailand or Vietnam. Both require strict licensing, KYC checks, and AML compliance. Cambodia? No such system existed until 2024 - and even then, enforcement was minimal. Criminals didn’t need to hide. They just needed a hotel room and a Telegram account.
The Human Cost
Beyond the money, there’s the people. According to the U.N. Office on Drugs and Crime, thousands are trapped in these scam compounds. Many were promised work as customer service reps or IT staff. Instead, they were forced to scam strangers - often while being watched by armed guards. One former worker told PANE News Lab they were fed once a day and beaten for missing daily fraud targets. Their phones were taken. Their passports destroyed. Escape meant death.
These aren’t faceless criminals. They’re victims too - trafficked, exploited, and forced to become part of the machine. And when they’re caught, they’re treated as criminals, not victims. There’s no support system. No legal aid. No safe house.
What’s Next?
The $15 billion seizure was historic. But it’s a drop in the ocean. Huione’s network still operates. New compounds are being built. New victims are being lured. Experts like Jacob Sims from Harvard warn this operation now rivals the global drug trade in profits. Without sustained international pressure - joint investigations, asset freezes, extradition deals - it will keep growing.
Cambodia’s Central Bank Digital Currency (CBDC), first announced in 2019, could eventually replace underground crypto. But it’s years away. In the meantime, the underground market thrives. It’s not a fringe activity. It’s a major financial system - built on fear, fraud, and forced labor.
What You Need to Know
If you’re outside Cambodia, you might think this doesn’t affect you. But it does. Every dollar lost to a crypto scam in the U.S., Canada, or Europe likely ended up in one of these compounds. Every victim of a fake investment platform? Their money funded human trafficking. This isn’t just about crypto. It’s about modern slavery disguised as a financial trend.
There’s no easy fix. But awareness is the first step. If you hear someone talking about "guaranteed crypto returns" from Cambodia - walk away. Report it. Because behind every "investment opportunity," there’s a person being held against their will.
Is cryptocurrency illegal in Cambodia?
Cambodia banned cryptocurrency in 2019, but in late 2024, it shifted to a licensing system that allows some crypto operations under government oversight. However, the underground market still thrives, with criminal networks exploiting loopholes to launder billions. The ban didn’t stop crypto use - it pushed it deeper underground.
Who is Huione Guarantee?
Huione Guarantee (Huiwang Group) is a criminal organization that operated as a central money laundering hub for crypto scams in Cambodia. It processed at least $4 billion in illicit funds between 2021 and 2025, including money from North Korean cyber thefts, fake investment schemes, and ransomware. It used Telegram to connect with other criminal groups and offered services like crypto mixing and connections to underground banks. The U.S. Treasury targeted it for laundering, and it was directly tied to the Prince Group’s scam compounds.
How do crypto scams in Cambodia work?
Scammers contact victims via messaging apps, claiming they made huge profits trading crypto. Victims are directed to fake platforms that look like Binance or Kucoin. Once money is sent, it’s funneled through Huione’s network into Cambodia, where it’s mixed with legitimate funds from casinos and hotels. The scammers are often trafficked workers forced to run these operations under threat of violence. Withdrawals are never processed - accounts are frozen, and victims are ignored.
Why hasn’t Cambodia shut this down?
Cambodia’s government has limited capacity to enforce financial laws. Corruption is widespread, and many officials are believed to be paid off by criminal groups. Even after the 2024 licensing system, enforcement remains weak. The Prince Group operated openly, using real businesses like hotels and casinos to launder money. International pressure, like the U.S. seizure of $15 billion in bitcoin, is the main reason any action has been taken - not local efforts.
Are there any safe ways to use crypto in Cambodia?
There are no safe or legal ways to use crypto in Cambodia if you’re not part of a licensed entity - and even those are risky. Many licensed operators are fronts for criminal networks. The National Bank of Cambodia still warns the public against crypto investment, citing high fraud risk. For ordinary Cambodians, using crypto carries extreme personal and financial risk. The safest option is to avoid it entirely until a truly transparent, regulated system emerges - which is still years away.
Underground crypto trading in Cambodia isn’t a story about technology. It’s a story about power, exploitation, and how greed can turn a financial ban into a global crime engine. Until governments act together - not just with seizures, but with systemic reform - this system will keep growing. And the victims? They’ll keep disappearing.
Paul David Rillorta
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