Underground Crypto Trading in Cambodia: How Criminal Networks Run Billions in Secret

Underground Crypto Trading in Cambodia: How Criminal Networks Run Billions in Secret Dec, 4 2025

By 2025, Cambodia’s underground crypto market isn’t just a loophole-it’s a global criminal enterprise that moves billions in stolen money, feeds human trafficking, and operates with near-total impunity. While the National Bank of Cambodia banned cryptocurrency in 2019, the ban didn’t stop trading. It made it deadlier.

How a Ban Created a Criminal Empire

In 2019, Cambodia’s central bank issued Directive No. 1125, outlawing all crypto transactions. The goal was simple: stop financial chaos. But instead of shutting down crypto, the ban pushed it into the shadows-and straight into the hands of organized crime.

What followed wasn’t a quiet black market. It was a full-scale industrial operation. Criminal groups built massive scam compounds across Sihanoukville and Chrey Thom, turning them into forced labor camps. Victims, lured by fake job offers from Thailand, Vietnam, and even the U.S., were trafficked into these compounds. Once inside, they were forced to run crypto scams 18 hours a day. If they didn’t meet daily targets, they were beaten, starved, or worse.

At the center of it all was the Prince Group, a criminal syndicate that turned hotels and casinos into fronts for fraud. The Jinbei Hotel and Casino? A scam hub. The Golden Fortune Science and Technology building? A prison disguised as a tech firm. These weren’t small-time operations. They were corporate-style crime rings with HR departments, security teams, and accounting units-all focused on laundering money through cryptocurrency.

The Huione Guarantee Machine

The real engine behind this system? Huione Guarantee, also known as Huiwang Group. Founded in 2014, Huione didn’t just move crypto. It built a one-stop crime platform on Telegram, offering tools for fraudsters: fake wallets, fake trading interfaces, money laundering pipelines, and even stolen personal data.

Chainalysis tracked Huione’s activity from August 2021 to January 2025 and found it laundered at least $4 billion. That includes $37 million from North Korean cyber thefts, $36 million from fake crypto investment scams, and over $300 million from ransomware and dark web payments. The scale was staggering. And it kept growing.

By 2024, South Korean exchanges alone sent $8.9 million in crypto to Huione-up 1,400% from the year before. By October 2025, that number had climbed to $3.15 billion Korean Won. Even after global crackdowns began, the flow didn’t stop. It just got smarter.

Huione didn’t just use crypto exchanges. It moved money through underground banks, shell companies, and casinos. It mixed coins, broke transactions into tiny chunks, and layered transfers across five different platforms. When one exchange flagged suspicious activity, they switched to another. When Telegram shut down their public channel in 2015, they moved to encrypted apps like Signal and Wickr. They adapted faster than regulators could track.

How Victims Got Hooked

The scams weren’t crude. They were polished, professional, and devastatingly convincing.

Victims-mostly in the U.S., South Korea, and Australia-received messages on WhatsApp, Telegram, or Instagram. Someone claiming to be a successful trader would message them: “I made $200,000 in three months. Want to learn how?”

They’d be invited to a private group or a fake trading app that looked exactly like Binance or KuCoin. The interface was flawless. The charts moved in real time. The “profits” piled up. Then came the ask: “Deposit $5,000 to unlock the full strategy.”

People sent it. Sometimes $10,000. Sometimes $100,000. Then the app froze. The “advisor” vanished. The money was gone-funneled into Huione’s laundering network, then into cash through Cambodian casinos and real estate deals.

Reddit threads from September 2025 show hundreds of victims sharing stories. One man lost $250,000 after trusting a “financial consultant” who sent him a link to a “private crypto fund.” Another woman, a retired teacher from Ohio, lost her life savings after being convinced the returns were guaranteed. Trustpilot reviews for Huione-related services-before they were deleted-showed a 1.2-star average. Common complaints: “Account frozen after deposit,” “No withdrawal possible,” “Threats if I asked for my money back.”

Luxury hotel lobby with a corrupted crypto terminal displaying frozen Bitcoin transactions and a man signing fake paperwork.

Why Cambodia? The Perfect Storm

Why did this happen here? Not because Cambodians love crypto. It’s because the country was wide open.

Cambodia has a cash-based economy. Few people use banks. Financial records are weak. The Corruption Perceptions Index ranked Cambodia 128th out of 180 countries in 2024. Law enforcement was underfunded. The central bank had no real power to monitor transactions outside the formal system.

And then there was geography. Cambodia sits between Vietnam and Thailand-two countries with strong crypto adoption but strict regulations. Scammers could lure victims from those countries, then move the money into Cambodia, where no one was looking.

The Prince Group didn’t just exploit this. They engineered it. They hired local officials. They paid off police. They bought land and built luxury hotels to launder money as “legitimate business income.” One compound even had a swimming pool and a gym-so victims would think they were working at a resort.

The 2024 Regulatory Flip

In late 2024, the National Bank of Cambodia made a move that shocked everyone. Instead of doubling down on the ban, it introduced Prakas B7-024-735 Prokor-a new licensing system for crypto exchanges.

On paper, this looked like progress. Finally, regulation. Finally, oversight.

But it backfired.

Criminal groups didn’t shut down. They applied for licenses. They hired compliance officers. They created fake KYC documents. Huione didn’t disappear. It rebranded. It opened a “licensed” office in Phnom Penh and started advertising “secure crypto services.”

The U.S. Department of Justice called it a “regulatory shell game.” Criminals were now hiding in plain sight, using the same paperwork that legitimate businesses needed to operate. The new rules didn’t stop crime. They gave it a seal of approval.

Victim's phone screen projecting into a massive Cambodian server farm, with data flowing to casinos and mining rigs.

The Billion Seizure

On October 14, 2025, everything changed.

The U.S. Department of Justice filed a civil complaint against the Prince Group, naming over 20 entities linked to the scam compounds. They didn’t just accuse them. They moved to seize assets-$15 billion in Bitcoin.

It was the largest asset forfeiture in U.S. history.

The seizure didn’t happen overnight. It took years of collaboration between the FBI, the U.K.’s National Crime Agency, South Korea’s Financial Supervisory Service, and Chainalysis. They traced wallets, mapped transaction chains, and linked fake trading platforms to real-world addresses in Cambodia.

The impact was immediate. Major exchanges like Binance, KuCoin, and OKX cut off all Cambodian-linked accounts. Telegram shut down hundreds of scam channels. The Prince Group’s internal documents-where executives wrote about “BTC laundering” and “underground money houses”-were made public.

But the network didn’t collapse. It fractured.

Smaller groups splintered off. They moved operations to remote areas. They started using privacy coins like Monero and Zcash. They shifted to decentralized exchanges where no one asks for ID.

What’s Next?

The fight isn’t over. The $15 billion seizure was historic, but it’s a drop in the ocean. Chainalysis estimates the total value of crypto laundered through Cambodia since 2020 exceeds $20 billion.

The National Bank of Cambodia is now exploring a Central Bank Digital Currency (CBDC) to replace underground crypto. But that’s a five-year project. In the meantime, people still use crypto. According to Standard Insights’ 2025 report, 10.63% of Cambodians still trade it-despite the ban.

The real question isn’t whether Cambodia can stop underground crypto. It’s whether the world will stop letting it grow.

Until foreign governments pressure Cambodia to prosecute its own criminals, until banks cut off all ties to Cambodian casinos and shell companies, until victims stop falling for fake crypto returns-the underground market will keep running. And it will keep getting bigger.

How to Stay Safe

If you’re thinking about crypto investments:

  • Never trust strangers on social media who promise guaranteed returns.
  • Never deposit money into apps or wallets you didn’t download from official stores.
  • Check the website-if it looks too perfect, too professional, it’s fake.
  • Use only regulated exchanges like Coinbase, Kraken, or Binance (if available in your country).
  • Report suspicious activity to your country’s financial crimes unit.
There’s no such thing as a risk-free crypto investment. But there are plenty of scams that look like one.

Is crypto trading illegal in Cambodia?

Yes, under Directive No. 1125 from 2019, all cryptocurrency transactions are banned by the National Bank of Cambodia. However, the ban is largely unenforced, and underground trading continues. In late 2024, Cambodia introduced a licensing system, which criminals have exploited to operate under the guise of legality.

Who is behind the biggest crypto scam network in Cambodia?

The Prince Group, led by Chen Zhi, runs the largest criminal network tied to crypto scams in Cambodia. They operate forced labor compounds in Sihanoukville and Chrey Thom, where trafficked workers run investment fraud schemes. Their laundering operation, Huione Guarantee, processed over $4 billion in illicit crypto between 2021 and 2025.

How do crypto scams from Cambodia reach U.S. victims?

Scammers contact victims via WhatsApp, Telegram, or Instagram, posing as successful traders. They lure people into fake trading platforms that mimic Binance or KuCoin. Once victims deposit money, the platform freezes, and the funds are laundered through underground banks and casinos in Cambodia. The U.S. Justice Department traced over $18 million from U.S. victims to Prince Group accounts through the "Brooklyn Network."

Why did the U.S. seize $15 billion in Bitcoin related to Cambodia?

The $15 billion seizure, announced in October 2025, targeted assets linked to the Prince Group and Huione Guarantee. It was the largest asset forfeiture in U.S. history and followed years of international cooperation between the FBI, U.K. National Crime Agency, and blockchain analysts. The funds were traced from crypto scams, ransomware, and dark web transactions back to Cambodian laundering hubs.

Are Cambodian crypto exchanges now safe to use?

No. While Cambodia introduced a licensing system in late 2024, criminal groups have used it to create fake "legal" exchanges. Many licensed entities are fronts for money laundering. The National Bank of Cambodia still lacks the resources to properly monitor them. Experts warn that until international pressure increases, no Cambodian crypto platform can be considered safe.

What should I do if I lost money to a Cambodia-based crypto scam?

Report it immediately to your country’s financial crimes unit (e.g., FinCEN in the U.S., AUSTRAC in Australia). Provide all transaction IDs, wallet addresses, and screenshots of the platform. While recovery is unlikely, reporting helps build cases against criminal networks. Avoid paying "recovery agents" who promise to get your money back-they’re often part of the same scam.

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20 Comments

  • Image placeholder

    Jonathan Sundqvist

    December 4, 2025 AT 13:15

    This is why we need to nuke the whole damn region. No more hand-holding. No more 'diplomacy.' If Cambodia won't clean up its own backyard, we should cut off every dime, every flight, every visa. These criminals are operating with U.S. money. Let's make them bleed.

    Stop treating this like a financial issue. It's a war. And we're losing.

    Send in the SEALs. Not for invasion. For asset raids. Take the casinos. Freeze the properties. Burn the servers. Then let the world see what real justice looks like.

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    Thomas Downey

    December 5, 2025 AT 14:32

    One is left to ponder the moral architecture of our global financial order when a sovereign state, bereft of institutional integrity, becomes the epicenter of a transnational syndicate that monetizes human suffering through algorithmic deception. The Huione Guarantee apparatus-far from being an aberration-is merely the logical culmination of neoliberal deregulation, compounded by the epistemological collapse of trust in centralized institutions.

    Let us not mistake this for criminality. It is systemic pathology. And we, the consumers of convenience, the believers in 'blockchain utopia,' are its architects.

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    Annette LeRoux

    December 5, 2025 AT 22:29

    My heart just broke reading this. 😭

    Imagine being lured by a DM from someone who sounds like your future self-only to wake up in a cage with a monitor and a headset, forced to lie to strangers for $50 a day. And the worst part? They think they’re helping.

    We need to stop treating this like a tech problem. It’s a trauma epidemic. These victims? They’re not stupid. They’re lonely. And predators know that.

    Someone please start a fund for survivors. I’ll donate.

    Also-why aren’t we talking about the women? They’re the ones getting beat the worst. 💔

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    Krista Hewes

    December 6, 2025 AT 23:08

    i just read this and i cant stop crying. i know someone who lost 120k to one of these scams last year. she’s been in therapy since. she still checks her email every morning hoping the 'advisor' will reply.

    the fake apps look so real. i checked one. it even had fake customer support chatbots. i thought it was legit for like 10 minutes.

    why do we keep falling for this? because we want to believe someone out there is just gonna give us money.

    we’re not dumb. we’re just tired.

    please someone help these people. not just the ones in cambodia. the ones who got scammed too.

    and if you see someone posting 'i made 50k in a week' on ig? block them. then report. please.

    thank you for writing this.

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    Mairead StiĂšbhart

    December 7, 2025 AT 15:14

    Oh honey, you really thought a ban would stop crypto? Sweetie. You might as well ban oxygen and expect people to stop breathing. The moment you outlaw something people want, you don’t kill the market-you turn it into a mafia franchise.

    And now we’re surprised the mafia got fancy? With HR departments? A swimming pool? Darling, that’s just capitalism with a side of cruelty.

    Let’s not pretend the U.S. is innocent. We built the apps. We funded the tech. We taught them how to scam better. Now we’re mad they got good at it?

    Maybe next time, regulate before the bodies pile up.

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    jonathan dunlow

    December 7, 2025 AT 23:06

    Look. I’m not a lawyer. I’m not a cop. I’m just a guy who lost his retirement to a fake crypto app last year. But I’ll tell you this: if you’re reading this and you’ve ever thought about investing in crypto because someone on TikTok said it’s 'the next big thing'-STOP.

    It’s not about the tech. It’s about the people. And these scammers? They don’t care if you’re 72 or 22. They just want your money. And they’ve got armies of people in Cambodia working 18-hour shifts to make sure you never get it back.

    But here’s the good news: you can stop this. Don’t click. Don’t send. Don’t trust. And if you know someone who’s already in it? Don’t yell at them. Sit with them. Help them report it. They’re not dumb. They’re broken.

    I’m still healing. But I’m not silent anymore.

    If you lost money too-comment below. We’re not alone.

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    Mariam Almatrook

    December 8, 2025 AT 08:27

    It is a profound and disquieting irony that the very mechanisms designed to democratize finance-decentralization, pseudonymity, cryptographic assurance-have been perverted into instruments of coercive servitude and psychological annihilation. The Huione Guarantee machine is not merely a laundering operation; it is the apotheosis of late-stage capitalist nihilism, wherein human dignity is reduced to a liquidity metric.

    One must ask: Is the National Bank of Cambodia’s licensing regime a reform-or a fig leaf for the bourgeoisie of brutality? The seizure of $15 billion in Bitcoin is not justice. It is accounting. The real crime remains unprosecuted: the commodification of desperation.

    And still, the world watches. As it always does.

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    Chris Mitchell

    December 9, 2025 AT 00:33

    It’s not Cambodia’s fault. It’s everyone’s.

    We created the tools. We built the apps. We taught them how to scam. We ignored the warnings. We let the banks ignore the red flags.

    Now we act shocked?

    Fix your own house before pointing fingers.

    And if you’re still trusting random strangers on Instagram with your crypto? You’re part of the problem.

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    rita linda

    December 9, 2025 AT 14:43

    Let’s be clear: this is a direct consequence of the West’s obsession with 'financial inclusion' without accountability. Crypto was sold as empowerment. Instead, it became a weaponized vector for transnational predation.

    The fact that the National Bank of Cambodia introduced licensing is proof of systemic failure. They didn’t fix the problem-they monetized it. And now the criminals are wearing suits.

    Regulation without enforcement is theater. And we’re all paying for the tickets.

    Meanwhile, the real criminals? They’re sipping champagne in Phnom Penh while you’re checking your wallet for the 47th time.

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    Cristal Consulting

    December 10, 2025 AT 05:37

    Hey-this is heavy. But I’m so glad someone finally put this out there.

    I work with financial literacy nonprofits. We’ve been trying to warn people for years. No one listens until they lose everything.

    If you’re reading this and you’re scared you got scammed? You’re not alone. Go to fincen.gov or your local financial crimes unit. Don’t wait. Don’t be ashamed.

    And if you’re a crypto influencer? Please stop posting 'easy money' reels. You’re not helping. You’re hurting.

    We can fix this. But only if we stop pretending it’s not happening.

  • Image placeholder

    Tom Van bergen

    December 10, 2025 AT 11:19
    ban crypto and nothing changes ban banks and they use cash ban cash and they use gold ban gold and they use barter ban barter and they use vibes

    you can’t outlaw human greed

    you can only outsmart it

    or you can just keep pretending the problem is Cambodia
  • Image placeholder

    Sandra Lee Beagan

    December 10, 2025 AT 17:41

    As a Canadian who’s seen our own crypto scams explode, I’m heartbroken. This isn’t just a Cambodia problem-it’s a global failure of oversight, empathy, and education.

    What’s worse? The victims are often elderly, isolated, or new immigrants. They’re not tech-savvy. They’re just trying to secure their future.

    Canada’s fintech sector has been quiet on this. Why? Because they’re scared of regulation. Same as everywhere.

    We need global standards. Not just enforcement. Real accountability. And we need to fund victim support networks-not just asset seizures.

    These people didn’t lose money.

    They lost their trust.

    And that’s the hardest thing to recover.

  • Image placeholder

    Ben VanDyk

    December 12, 2025 AT 13:59

    So the U.S. seized $15 billion in Bitcoin.

    Cool.

    Meanwhile, the same people who ran the scams are probably already in Thailand or Laos with new IDs.

    And your grandma’s $80k? Still gone.

    Just saying.

    Also, the article says '10.63% of Cambodians still trade crypto.'

    That’s a stat with no source. Lazy.

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    michael cuevas

    December 13, 2025 AT 02:44

    Oh so now the U.S. is the moral police? You guys funded half the tech these scammers use. You sold them the servers. You let your banks ignore the transactions. You let your crypto exchanges turn a blind eye.

    And now you’re mad they got good at it?

    Classic.

    Meanwhile, the real story? The victims. The ones who got trapped. The ones who got beaten.

    They don’t care about your sanctions.

    They just want to go home.

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    Barb Pooley

    December 14, 2025 AT 18:23

    Let me guess-the CIA started this.

    They needed a reason to invade Cambodia. So they let the scammers run wild for 5 years. Then-BAM-$15 billion seizure. Perfect excuse to send in the drones.

    And the 'licensed exchanges'? Totally fake. Just like the 'democracy' we export.

    They’re not fighting crime.

    They’re creating it.

    And you’re all just sheep waiting for the next headline.

  • Image placeholder

    Shane Budge

    December 14, 2025 AT 19:42

    How many of these scam compounds are still active?

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    sonia sifflet

    December 15, 2025 AT 06:29

    Everyone is acting like this is new. In India we have been seeing these exact same scams for 3 years. Fake trading apps. Telegram groups. WhatsApp gurus. Same scripts. Same lies. Same victims.

    And guess what? No one cares. Because they’re not Americans.

    So why is this article treated like breaking news? Because the victims are white? Because the money is in USD?

    This is global. But only the West gets coverage.

    Wake up.

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    Renelle Wilson

    December 17, 2025 AT 05:58

    I’ve spent the last three years working with survivors of these scams. Not the ones who lost money-but the ones who were forced to run them.

    They’re not criminals. They’re hostages. Some are teenagers. Some are mothers. Some were promised jobs as hotel staff. They were told they’d earn $3,000 a month. Instead, they were locked in, given one meal a day, and forced to lie to strangers for 18 hours.

    They’re traumatized. Many have PTSD. Some have broken bones from beatings. All of them are terrified to speak out.

    When the U.S. seizes $15 billion in Bitcoin, that’s a headline.

    When a 19-year-old girl from Vietnam escapes and cries for three days because she doesn’t know how to use a phone anymore? That’s not news.

    We need to stop treating this like a financial crime.

    It’s human trafficking with a blockchain.

    And until we treat it that way-we’re not helping anyone.

    If you’re reading this and you have skills in trauma counseling, translation, or legal aid-please reach out. These people need you. Not headlines. Not sanctions. Just someone who sees them.

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    Jerry Perisho

    December 17, 2025 AT 17:37

    Here’s what nobody’s saying: the $15 billion seizure didn’t break the network.

    It just made it smarter.

    Now they’re using Monero. Mixing through DeFi. Hiding in NFT marketplaces. Moving through peer-to-peer trades.

    And the real winners? The Chinese tech firms that built the fake trading platforms. They’re still operating. Still selling. Still making millions.

    They didn’t need Cambodia.

    They just needed the ban.

    And now they’ve got it.

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    Holly Cute

    December 18, 2025 AT 02:40

    Let’s be brutally honest: the entire crypto ecosystem is a Ponzi scheme wrapped in a blockchain and sold as a revolution.

    This isn’t a Cambodian problem.

    This is a human problem.

    We created a system where trust is replaced by code, where value is dictated by hype, and where desperation is the only currency that matters.

    The Prince Group didn’t invent fraud.

    They just optimized it.

    And we? We kept clicking 'Buy Now.'

    So don’t blame Cambodia.

    Blame yourself.

    Because if you ever bought crypto because someone told you it was 'the future'-you helped build this.

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