Cambodia condemns US sanctions on Ly Yong Phat amid forced labour allegations

Cambodia on Friday decried newly imposed US sanctions on one of the country’s top tycoons who has been implicated in allegations of forced labor, human trafficking and lucrative online scams.

Cambodia’s foreign ministry expressed “deep regret over the unjust decision” to sanction Ly Yong Phat and suggested that the action could hurt bilateral relations. Ly Yong Phat, one of Cambodia’s richest men, is also a Cambodian senator and a leading member of the ruling Cambodian People’s Party of Prime Minister Hun Manet.

The U.S. Treasury Department on Thursday imposed sanctions on Ly Yong Phat and five of his businesses “for their role in serious human rights abuses related to the treatment of workers subjected to forced labor in online investment scam operations.”

More from World

Nepal's new PM pays homage to people died during the Gen Z protest in her first national address This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal

“Victims forced to run virtual currency investment scams and other online schemes are often lured by fraudulent jobs and promises of free housing,” said the statement. “Instead, they find themselves forced to run scam operations for criminal organizations under horrifying working and living conditions.”

Washington’s move, which blocks any of Ly Yong Phat’s assets in the United States and prohibits U.S. entities from doing business with him, reflects mounting concern about cybercrime, including from Southeast Asia and Cambodia in particular.

Cambodia has been the location of cyberscams that include “ pig butchering,” a term that refers to gaining victims’ trust through dating apps or other sites and steering them toward bogus investments. Cryptocurrency is often used in such schemes to make them harder to stop.

Impact Shorts

More Shorts

‘The cries of this widow will echo’: In first public remarks, Erika Kirk warns Charlie’s killers they’ve ‘unleashed a fire’

Trump urges Nato to back sanctions on Russia, calls for 50–100% tariffs on China

Friday’s statement from Cambodia’s foreign ministry claimed the Treasury’s action was “based on unconfirmed reports of forced labor linked to online investment scams,” as well as “politically motivated” and “counter to the spirit of reinforcing our bilateral cooperation and mutual trust.”

Cambodian-U.S. relations have long been strained over Washington’s criticism of alleged political repression and human rights violations by the government, as well as its close relationship to China.

In June, U.S. Defense Secretary Lloyd Austin visited Phnom Penh and his meetings with Cambodian officials had suggested the beginning of a thaw in relations between the countries.

Friday’s statement further said the Treasury’s report “fails to provide a balanced and accurate representation of Cambodia’s steadfast commitment to human rights, law enforcement, and its determined efforts to combat human trafficking and forced labor.”

It also praised Ly Yong Phat’s role “in advancing Cambodia’s socio-economic development over the decades” through his L.Y.P. Group.

Though Ly Yong Phat himself has not faced any human trafficking charges, a casino run by his business has been raided at least twice, and both times authorities rescued people who had been forced to work there in call-center scams and other illicit activities, The Associated Press reported in May.

Victims cited being lured to O-Smach Resort, a property owned by L.Y.P. Group, with false employment opportunities, having their phones and passports confiscated upon arrival, and being forced to work scam operations.

The victims also reported being beaten, abused with electric shocks, made to pay a hefty ransom, or threatened with being sold to other online scam gangs.