Cambodia's Scam Industry Exodus: High-Profile Arrests Trigger Mass Worker Release
The recent arrests of two alleged ringleaders in Cambodia's transnational scam networks have sparked a dramatic exodus of thousands of workers from scam compounds across the country. This development represents one of the most significant shake-ups to date for the deeply entrenched pig-butchering industry, an illicit operation that has stolen billions of dollars from victims worldwide.
High-Profile Arrests and Immediate Fallout
On January 6, Cambodian authorities apprehended Chen Zhi, the 38-year-old chairman of Cambodian conglomerate Prince Group. The United States had previously sanctioned and indicted Chen in October for allegedly operating one of Asia's largest transnational pig-butchering networks. He was extradited to his native China the following day at Beijing's request.
Just over a week later, authorities took into custody Ly Kuong, a 49-year-old Cambodian casino and real-estate tycoon, charging him with fraud, money laundering, and exploitation of illegally recruited workers. Neither individual could be reached for comment, and both have previously denied involvement with cyberscams or human trafficking.
The Scale of Cambodia's Scam Industry
According to estimates cited by U.S. prosecutors, the Cambodian scam industry generates annual revenues of up to $19 billion, equivalent to more than one-third of the country's gross domestic product. Southeast Asian scam networks stole approximately $10 billion from Americans in 2024 alone, according to Federal Bureau of Investigation data.
Before the recent crackdown, Cambodia hosted more than 250 scam compounds, many staffed by foreigners lured with false promises of lucrative employment. These workers were then forced to operate online romance scams, investment frauds, and other schemes for little or no compensation.
Mass Exodus and Embassy Scenes
In the hours and days following the arrests, chaotic scenes unfolded across Cambodian scam compounds. Videos from at least 15 known compounds verified by Amnesty International show crowds of workers suddenly finding themselves free to leave, many carrying their belongings in suitcases or plastic bags.
The Indonesian Embassy in Phnom Penh reported that more than 2,750 workers sought assistance to return home between January 16 and 29, with dozens sleeping on streets outside the embassy building. While the embassy stated that none of the assessed workers were identified as trafficking victims, this assessment contradicts accounts from workers interviewed by The Wall Street Journal and human rights organizations.
Similar lines formed outside the Chinese Embassy in Phnom Penh earlier in January, while workers from African countries without Cambodian embassies appealed for repatriation assistance at the International Organization for Migration's local office.
Worker Testimonies Reveal Harsh Realities
Mohamad Nasrul, a 28-year-old Indonesian, described fleeing a scam compound in Bavet on Cambodia's border with Vietnam on January 19. "I was eating dinner when people suddenly started running out of the compound. I immediately went to get my clothes and followed them," he recounted. "I didn't know what was happening. No one announced that we were allowed to leave."
Nasrul explained he had been tricked into traveling to Cambodia in December with vague promises of well-paying work. Instead, he found himself confined in a heavily guarded compound and forced to scam Indonesian businessmen across Asia, with a monthly target of $5,000. "I was punched and slapped because I didn't meet the target of finding customers," he said, adding he witnessed another worker beaten and punished with electric shocks.
Government Response and Ongoing Challenges
Cambodian officials have stated the arrests are part of an ongoing crackdown on the scam industry. Information Minister Neth Pheaktra emphasized that "Cambodia applies zero tolerance toward online scams and human trafficking" and that investigations proceed based on evidence and due process.
However, analysts argue more comprehensive action is needed. Jacob Sims, a visiting fellow at Harvard University's Asia Center, noted that "You don't see large-scale arrests of important people" and questioned how many people have actually been released.
The United Nations estimated in 2023 that approximately 100,000 workers had been trafficked into Cambodian scam centers, highlighting the immense scale of this human rights crisis.
Political Connections and International Pressure
In 2024, the United States sanctioned Ly Yong Phat, a Cambodian senator and businessman, for alleged human rights abuses linked to transnational scams and human trafficking. Thailand has indicted another senator, Kok An, for alleged scam activity. Cambodian authorities haven't announced investigations into either official, with the government previously rejecting U.S. sanctions against Ly Yong Phat as "baseless."
While the recent arrests represent progress, experts maintain that eradicating Cambodia's deeply rooted scam industry requires more sustained effort, including investigating Cambodian businessmen and government officials suspected of criminal involvement.
