Photo by Brett Sayles
The United States Department of Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Cambodian entrepreneur and senator Ly Yong Phat, alleging Ly’s involvement in severe human rights abuses, particularly the exploitation of trafficked workers in online scam operations.
The Treasury alleges that Ly Yong Phat, through his conglomerate, L.Y.P. Group, operates O Smach Resort, a facility that has gained notoriety as a forced labour camp. The resort is reportedly being used to run cyber scams, primarily involving fraudulent cryptocurrency and foreign exchange investments.
Workers at the resort, forced into labour under duress, promote these schemes to potential victims worldwide.
According to the US government, individuals lured to O Smach Resort with promises of employment have faced horrifying conditions upon arrival. Their phones and passports were confiscated, leaving them trapped in the operation.
Victims of this forced labour network have recounted tales of being beaten, subjected to electric shocks, and even forced to pay ransoms to escape. Disturbingly, two individuals reportedly took their own lives by jumping from resort buildings, underscoring the grim reality of life in these scam operations.
Rescue operations conducted by Cambodian authorities have led to the freeing of victims from various countries, including China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam, reports The Register.
Despite these efforts, the resort and others like it across Cambodia and Southeast Asia continue to operate as hubs for cyber scams and human trafficking.
Under the new sanctions, any US-based assets owned by Ly Yong Phat must be reported to OAFC. US citizens are prohibited from engaging in business with the Cambodian senator without specific permission.
Additionally, financial institutions that maintain dealings with Ly or his entities may face penalties or further action from the US government.
Cambodia is not the only country grappling with forced labour cyber scam operations. Similar camps have been uncovered in the Philippines and Myanmar. In June 2024, reports came out about a massive China-supported scam operation in Myanmar run by powerful crime families.
In the News: 17-year-old arrested for hacking London Tube
