US Sanctions Cambodian Senator and Associates over Multi-Million Dollar Crypto Fraud

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Cambodian Senator Kok An and a network of 28 associated individuals and entities for their alleged involvement in a massive cross-border cryptocurrency fraud scheme. Announced on April 24, 2026, the designations target a sophisticated criminal enterprise accused of defrauding American consumers through digital asset investment platforms. The action, executed under Executive Order 13694 and a March 2026 directive on foreign cyber-enabled crime, represents a significant escalation in the crackdown on organized scam centers operating within Southeast Asia.

Background and Context

At the heart of this criminal operation is a complex "pig butchering" scheme, a long-term fraud strategy where scammers build romantic or friendly relationships with victims via social media before persuading them to invest in fake cryptocurrency platforms. According to analysis by TRM Labs, these operations are frequently headquartered in converted casinos, resorts, and fortified compounds in Cambodian cities such as Sihanoukville, Poipet, and Bavet, as well as in connected locations across Burma. These facilities are often staffed by victims of human trafficking who are coerced, sometimes under threat of violence, to execute the scams against targets in the United States and Europe.

Key Figures and Entities

Senator Kok An, a prominent political figure in Cambodia, sits at the apex of the designated network. He owns Crown Resorts, a hospitality group controlling casinos and hotels throughout the country. Evidence reviewed by investigators suggests that his properties have been repurposed to host these scam operations. Furthermore, his security firm, Anco Brothers, is alleged to provide protection for the activities, while Anco Specialized Bank facilitates the movement of illicit funds.

Other key actors designated include Luo Hong, the founder of the Bolai compound, which serves as a primary hub for scam execution and money laundering; Rithy Raksmei of the K99 Group casino empire; and Burmese-born Cambodian citizens Aik Paung and Sai Aung Linn. The latter pair control additional resorts, construction firms, and Heng Feng Cambodia Bank, further weaving the operation into the region’s formal economy. The network also maintains connections to Daren Li, a US-based fugitive money launderer for whom the US State Department’s Rewards for Justice program is offering a $4 million reward for information leading to his arrest.

Legal and Financial Mechanisms

The financial infrastructure supporting this enterprise is highly sophisticated. Blockchain tracing conducted by TRM Labs reveals that over 75 percent of sampled scam addresses utilize advanced laundering techniques, including layered wallet-to-wallet transfers, shared laundering nodes, and the rapid conversion of assets into stablecoins via gambling platforms and exchanges.

Investigations led by the US Secret Service have directly linked at least $1.3 million to accounts controlled by Luo Hong. Meanwhile, the judicial process is moving forward against accomplices in the United States: eight US-based co-conspirators have already pleaded guilty to laundering more than $73 million in victim funds. These financial flows were reportedly facilitated by a network of banks and casinos operating under the guise of legitimate business.

International Implications and Policy Response

These sanctions form part of a broader initiative by the Department of Justice's Scam Center Strike Force. Recent efforts by this task force include criminal charges against operators of a Burmese compound, the seizure of a recruitment messaging app, and the takedown of 503 fraudulent investment domains. This latest action builds upon previous sanctions targeting other layers of the same ecosystem, including property tycoon Ly Yong Phat in 2024 and the Prince Group in 2025.

The scale of the threat is underscored by data in TRM Labs’ 2026 Crypto Crime Report, which notes that illicit cryptocurrency flows reached $158 billion in 2025—a 145 percent increase from the previous year. Fraud and scams accounted for $35 billion of this total, though global annual losses are likely much higher due to underreporting, potentially exceeding $200 billion. The designations serve as a warning to legitimate businesses in Cambodia’s casino, real estate, and banking sectors to rigorously scrutinize their indirect exposure to such networks.

Sources

This report draws on US Department of the Treasury press releases, analysis by TRM Labs, and US Department of Justice filings regarding the Scam Center Strike Force and related cryptocurrency investigations.