Crypto-Fueled Fraud: Cambodia’s $19B Shadow Finance Empire Exposed
Digital assets turned dirty money machine—watchdog uncovers sprawling scam network.
How crypto became the lifeblood of Cambodia’s underground economy.
From Ponzi schemes to wash trading, $19 billion vanished into the blockchain void—proving once again that where there’s unregulated money, there’s always a ‘creative’ financier ready to exploit it.
A "focal point" for crypto scams
HRC’s findings align with a UNODC report released last month, which warned of Southeast Asia’s scam infrastructure spreading into Africa, the Middle East, and Latin America.
The report named Cambodia as a key node in this global expansion, with syndicates relocating scam operations from Sihanoukville and Phnom Penh to rural provinces including Koh Kong, Bavet, and Pursat, where new compounds have been rapidly constructed since 2022.
HRC cites blockchain analytics firm Elliptic’s January report, which revealed that Huione had launched its own stablecoin, expanding its ability to process illicit payments while bypassing traditional financial channels.
“The scale of these operations makes Cambodia a focal point for crypto-based fraud globally,” Deddy Lavid, CEO of blockchain analytics platform Cyvers, told Decrypt.
Telegram recently banned channels and accounts associated with Haowang Guarantee, a rebranded Huione Guarantee, citing violations tied to fraud and money laundering.
What are pig butchering scams?
Huione Guarantee, had become central to laundering proceeds from romance scams, crypto investment fraud, and “pig butchering” operations targeting victims worldwide.
Pig butchering scams are where victims are emotionally groomed by fake romantic or business partners and ultimately convinced to invest large sums under false pretenses.
“Unfortunately, the use of crypto as the final payout method in pig butchering scams is widespread due to cryptocurrencies’ inherent characteristics: pseudonymity, ease of cross-border transfers, and lack of centralized control,” Lavid told Decrypt.
