Cambodia dismantles $250 million cryptocurrency money laundering ring

Cambodia’s Anti-Corruption Unit (ACU) has dismantled a major cryptocurrency money laundering ring linked to online fraud, involving more than $250 million transferred abroad through digital wallets and a Phnom Penh-based exchange.

Authorities identified Zhang Jian Qiang, also known as Cai You Yuan, as a primary leader of the scam operations based in Koh Kong province. The ring utilized an unlicensed virtual asset service provider, Sokong 148, owned by 25-year-old Lay Sokong, to convert digital assets into fiat currencies, including USD, Chinese Yuan, and Cambodian Riel.

Approximately 90% of the illicit funds were transferred internationally almost immediately. Five suspects have been arrested on charges of corruption, technology-based fraud, and money laundering, while Zhang and several Chinese associates remain at large.

The International Monetary Fund (IMF) has warned that online scams, human trafficking, and money laundering have become significant macroeconomic issues in Cambodia, potentially threatening financial stability, investor confidence, and the tourism industry. Citing research from the United Nations Office on Drugs and Crime (UNODC), the IMF noted that industrial-scale scam centers in the Mekong region generate nearly $40 billion in annual profits.