The U.S. Treasury has recently taken strong action against two major criminal networks involved in online scams and money laundering. These actions target groups that exploit American citizens and others worldwide.
Crackdown on Criminal Networks
The Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 146 entities linked to a Cambodia-based group called the Prince Group Transnational Criminal Organization (TCO). This group, led by Chen Zhi, has been running a series of investment scams that have reportedly cost Americans over $16 billion in losses.
Secretary of the Treasury Scott Bessent emphasized the seriousness of these schemes, noting that many victims lose life savings in just minutes. The Treasury coordinated with the U.K. to impose sanctions, targeting those who aid in these scams.
Financial Impact of Scams
Data shows that online investment scams have surged, with American losses estimated at $10 billion in 2024 alone, marking a 66% increase from the previous year. This spike is largely due to operations like the one run by the Prince Group TCO. Experts estimate that these scams have permeated Southeast Asia, particularly in Cambodia, where they manipulate victims into investing in fraudulent platforms.
The Role of Huione Group
In a related move, the Financial Crimes Enforcement Network (FinCEN) cut the Huione Group off from the U.S. financial system. This group has laundered billions linked to cyber scams. A recent report revealed that between August 2021 and January 2025, Huione processed over $4 billion in illicit funds, including those from North Korean cybercrimes.
FinCEN’s actions now prevent U.S. banks from engaging in business with Huione Group, taking an essential step to protect the financial system from these criminal networks.
Human Trafficking and Forced Labor
Investigations have revealed disturbing truths about how these scams operate. Many workers trapped in these cyberfraud schemes are themselves victims of human trafficking. They are often lured with false promises of well-paying jobs, only to find themselves forced into scamming others. Some reports detail horrific conditions in these scam compounds, where workers face severe abuse.
Conclusion
The actions taken by the U.S. Treasury and FinCEN highlight the growing threat posed by these transnational criminal organizations. As scams become more sophisticated, protecting individuals becomes increasingly essential. The collaboration between countries signals a united front against such criminal activities.
For further insights, you can check out the U.S. Department of the Treasury, which provides regular updates on measures against financial crime.
