US Targets Cambodian Conglomerate in Major Cyber-Fraud Crackdown

Treasury Secretary Scott Bessent noted that these scam centers cost Americans at least $10 billion in 2024, a 66 percent surge from the previous year. The sanctions build upon earlier designations of the Prince Group, a conglomerate with vast holdings in banking, aviation, and real estate. Federal investigators identified the Huione Group as a critical money-laundering partner, alleging that it provided the technological infrastructure to convert illicit cryptocurrency proceeds into legitimate banking assets.

In a parallel move, the Department of Justice seized a cloud computing account linked to Huione subsidiaries. Authorities allege this infrastructure supported Huione Guarantee, a platform operating on Telegram to facilitate human trafficking, the sale of stolen identity documents, and the laundering of romance scam profits. Among those sanctioned is Hu Xiaowei, identified as the second-in-command of the Prince Group and a close associate of its leader, Chen Zhi. Hu reportedly utilized a network of British Virgin Islands firms to obscure the movement of funds. Chen Zhi remains in Chinese custody following his January extradition, marking a rare instance of U.S.-China cooperation in dismantling the financial backbone of these criminal enterprises.