US Blocks Business and Assets of Cambodian Entrepreneur, Due to Crypto Fraud

Todaysgist, News – The US Treasury Department has imposed sanctions on a Cambodian businessman for cyber and crypto fraud, blocking his business and assets in the US.

The sanctions target Cambodian businessman Ly Yong Phat, whose LYP Group conglomerate is based, and several of his properties, including the O-Smach Resort. He has been linked to human rights abuses related to alleged human trafficking and forced labor for an online fraud hub focused on cryptocurrency scams.

According to the Treasury Department’s Office of Foreign Assets Control (OFAC), many of these scams, including those run by Ly’s businesses, involve victims being manipulated into investing in virtual currencies or foreign exchange schemes under false pretenses.

“In many cases, this involves convincing victims to invest in virtual currencies, or in some cases, over-the-counter foreign exchange schemes, all with the intent of defrauding them of their funds. These scams are largely perpetrated by criminal organizations based in Southeast Asia,” the US Treasury Department wrote, as quoted from Bitcoin.comSunday (15/9/2024).

The sanctions block all assets of Ly and his US-based businesses, and prohibit US persons from engaging in transactions involving these entities. This includes transactions with cryptocurrencies, funds or related services.

OFAC’s action is pursuant to Executive Order 13818, which expands the Global Magnitsky Human Rights Accountability Act. The rule aims to combat serious human rights abuses and corruption, particularly those related to virtual currencies and fraudulent investment schemes.