High-profile arrests spark exodus of scam workers in Cambodia

Subscribe to enjoy similar stories. The arrests of two alleged ringleaders of transnational scam networks in Cambodia have led to thousands of workers—many of them trafficked—being let go from compounds across the country, one of the biggest shake-ups to date of the so-called pig-butchering industry. But the government’s actions fall short of what experts say is needed to eradicate an illicit industry that has become deeply rooted in Cambodia and has stolen billions of dollars from Americans in recent years.

The criminal activity has been dubbed pig-butchering because the perpetrators slowly build relationships with victims before stealing their money. On Jan. 6, Cambodian authorities arrested Chen Zhi, the chairman of Cambodian conglomerate Prince Group, whom the U.S.

sanctioned and indicted in October for allegedly running one of Asia’s largest transnational pig-butchering networks. The 38-year-old Chen was extradited to his native China the following day at Beijing’s request. Just over a week later, Cambodian authorities took into custody Ly Kuong, 49, a Cambodian casino and real-estate tycoon, and charged him with fraud, money laundering and exploitation of illegally recruited workers.

Neither Chen nor Ly Kuong could be reached for comment and the Chinese Embassy didn’t respond to a request for comment. Both men have previously denied any involvement with cyberscams or human trafficking. Lawyers for Chen and Prince Group in the U.S.

didn’t respond to requests for comment. 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.