US sanctions Cambodian tycoon for alleged human trafficking to cyber scam centers

The United States has imposed sanctions on Cambodian tycoon Ly Yong Phat, a close advisor to Prime Minister Hun Manet, for his alleged involvement in human trafficking and forced labour linked to online scam centres. The U.S. Treasury Department targeted Phat and his conglomerate, L.Y.P. Group Co., citing their role in exploiting workers at these scam operations.

Phat’s O-Smach Resort is accused of serious human rights abuses, including trafficking victims into forced labour. Workers were coerced into running cyber scams targeting victims globally, including in the U.S., Europe, and China. The resort, along with other properties owned by Phat, is said to have lured victims with fake job offers, later confiscating their passports and forcing them to work in abusive conditions.

These operations are part of a broader issue in Southeast Asia, where scam compounds have proliferated, trapping thousands of foreign workers. Despite growing international pressure, human trafficking and cyber scams in Cambodia remain highly lucrative, with losses from scams reaching nearly $4 billion in 2023 alone.

The U.S. sanctions aim to hold those responsible for human trafficking accountable, disrupting their ability to exploit vulnerable individuals. The crackdown comes amid calls from the UN and other international bodies for Cambodia to address widespread trafficking and forced labour.