The U.S. Treasury's Office of Foreign Assets Control (OFAC) has sanctioned Cambodian senator Kok An, accusing him of controlling a network of scam compounds that have defrauded U.S. citizens through crypto-related fraud. OFAC designated Kok An along with 28 individuals and entities linked to the network, expanding enforcement against organized financial crime tied to crypto markets. The sanctions follow recent police raids on two scam centers in Poipet, Cambodia, a city near the Thai border associated with large-scale fraud operations.
Authorities describe the scam model as built on social engineering rather than technical exploitation. Victims are approached through online relationships—often framed as friendships or romantic connections—before being directed to fraudulent investment platforms. “Using the lure of friendship or romantic relationships, these fraudsters coax vulnerable Americans” to send crypto with promises of high returns. Once funds are transferred, they are routed through networks designed to obscure origin and ownership. OFAC said these operations have generated millions of dollars in losses for victims.
Concurrently, the U.S. Department of Justice (DOJ) announced on Thursday that it has frozen over $701 million in cryptocurrency tied to similar investment scams targeting Americans. The funds were restrained through coordination with crypto exchanges and legal action, as part of efforts led by its Scam Center Strike Force. “The Scam Center Strike Force continues its work to identify, seize, and forfeit funds involved in money laundering related to scams, so that funds can be returned to victims whenever possible,” the agency stated.
Authorities confirmed the seizure of a Telegram channel used to recruit individuals into a scam center in Cambodia, where job seekers were often lured under false pretenses. Investigators also dismantled at least 503 fake investment websites, which now display seizure notices. Court filings name two Chinese nationals, Huang Xingshan and Jiang Wen Jie, accused of running a crypto fraud operation from the Shunda compound in Burma, which had been seized in November 2025 by the Karen National Liberation Army.
OFAC linked the scam compounds to wider criminal activity, including money laundering and human rights abuses. In some cases, individuals working within these operations are reported to be victims of human trafficking, forced to participate under threat of violence. “In some cases, individuals perpetrating these scams are themselves victims of human trafficking and are forced to commit unlawful acts under threat of violence,” OFAC said.
The sanctions coincide with the seizure of more than 500 web domains linked to fraudulent crypto investment schemes. Internationally, the Singapore Police Force recently prevented over $2.86 million in potential losses through a month-long operation, working with exchanges such as Coinbase, Gemini, and Independent Reserve. Blockchain analytics firms TRM Labs and Chainalysis supported the effort. The FBI reported receiving over one million cybercrime complaints in 2025, with total losses reaching about $21 billion.
