World April 25, 2026 01:21 AM

U.S. Targets Cambodian Senator and 28 Associates in Crackdown on Crypto Romance Scams

Treasury identifies Kok An as protector of scam compounds; strike force announces related arrests and seizures as stablecoin issuer freezes linked funds

By Hana Yamamoto
U.S. Targets Cambodian Senator and 28 Associates in Crackdown on Crypto Romance Scams

The U.S. government imposed sanctions on Cambodian senator Kok An and 28 other people and entities accused of running crypto-romance scams that siphoned millions from U.S. citizens. Authorities say Kok An used his political influence to shelter scam compounds and operators who lured victims with false romantic relationships and investment promises. The action coincided with arrests announced by an interagency Scam Center Strike Force and a freeze by stablecoin issuer Tether of more than $344 million in USDT tied to alleged illicit activity.

Key Points

  • Treasury says Kok An used political ties to shield scam compounds and operators who lured U.S. citizens into transferring digital assets under false promises.
  • Interagency Scam Center Strike Force announced charges linked to cryptocurrency investment fraud at a Myanmar scam compound and reported arrests of two Chinese nationals in Thailand in 2026.
  • Stablecoin issuer Tether froze over $344 million in USDT linked to alleged sanctions evasion or illicit activity; strike force also seized a messaging app and 503 fraudulent domains.

WASHINGTON - The U.S. government on Thursday announced sanctions targeting Kok An, a wealthy Cambodian senator and ally of Cambodian Senate President Hun Sen, along with 28 individuals and entities it says were responsible for stealing millions from U.S. citizens through crypto-romance scams.

The U.S. Treasury Department described Kok An as using his political connections to shield a network of scam centers and operators who cultivated close relationships - including promises of friendship or romantic partnership - as a way to persuade vulnerable Americans to transfer their savings into digital assets. Those transfers, the Treasury said, were then misappropriated instead of yielding the promised returns.

According to the Treasury, Kok An holds ownership across a number of companies, including Crown Resorts, and controls properties that have been used to host the scam compounds. The department also described victims of human trafficking who reported they and thousands of others were taken to these compounds and forced, under threat of violence, to steal funds from Americans.

Official response and enforcement

Treasury Secretary Scott Bessent underscored the administration's focus on financial crime, saying: "Eliminating fraud is a top priority for the Trump administration. Treasury will continue to target fraudsters and scam centers that steal billions of dollars from hardworking Americans, no matter where they operate or how well-connected they are."

An interagency Scam Center Strike Force - made up of the U.S. Attorney’s Office, the Justice Department, the FBI and the U.S. Secret Service - also announced charges tied to cryptocurrency investment fraud operations at a scam compound in Myanmar. The Strike Force said two Chinese nationals linked to those operations were arrested in Thailand in 2026 on immigration charges and that the suspects had attempted to open a scam compound in Cambodia.

Commenting on the diplomatic and security dimensions of the action, Brett Erickson, managing principal at Obsidian Risk Advisors, called it "an incredibly aggressive move from a diplomatic standpoint" and said the administration views the scams as a national security threat. "These scams are wiping out people’s life savings. This is devastating families," he said.

Related enforcement steps and asset actions

The announcement came hours after the stablecoin issuer Tether reported it had frozen more than $344 million in USDT that it said was linked to sanctions evasion, criminal networks or other illicit activity. Tether said it worked with OFAC and other U.S. law enforcement agencies to implement the restrictions.

Separately, the Strike Force reported seizing a social media messaging app allegedly used to recruit human trafficking victims and taking down 503 fraudulent web domains that were used to carry out cryptocurrency investment fraud, according to the Treasury.

The U.S. State Department has also offered up to $10 million for information that could lead to the seizure or recovery of scam proceeds connected to a separate sanctioned scam compound in Myanmar, which was placed under sanctions last November.

Cambodian response and domestic actions

In a statement issued on Friday that did not address the U.S. sanctions directly, Cambodia's government said that "combating online scams has been set as a top national priority". The statement added that from early 2025 through April 19 of this year, Cambodian authorities carried out procedures to deport 13,039 foreign nationals involved in online scams.

What authorities say remains to be done

The combined actions - sanctions on an influential political figure and the coordinated enforcement by a Strike Force that includes criminal charges, asset seizures and cooperation with private-sector actors like a stablecoin issuer - represent a multi-pronged U.S. approach aimed at disrupting networks accused of exploiting romantic pretexts and cryptocurrency to defraud U.S. victims. Officials emphasized the cross-border nature of the operations and the involvement of human trafficking in the alleged scheme.


Summary

The U.S. imposed sanctions on Cambodian senator Kok An and 28 others accused of running crypto-romance scams that stole millions from Americans. Officials said Kok An used political connections to protect scam centers; victims were allegedly trafficked and forced to steal. An interagency Strike Force announced related charges and seizures, and Tether froze over $344 million in USDT linked to alleged illicit activity. Cambodia said combating online scams is a national priority and reported deportations of foreigners involved in such operations.

Risks

  • Continued operation of cross-border crypto-based fraud networks poses reputational and regulatory risk to cryptocurrency firms and stablecoin issuers.
  • Human trafficking and forced participation in scam operations highlight law enforcement and humanitarian risks tied to online fraud networks.
  • Diplomatic tensions may rise as enforcement actions target politically connected individuals and transnational networks, creating uncertainty for entities operating in affected jurisdictions.

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