South Korea bans travel to Cambodia; US exposes billion-dollar cryptocurrency scheme

• Travel to Cambodia prohibited: risk of kidnapping
• Fraudulent network accumulates US$15 billion in crypto
• Sanctions target Prince Group and London assets

Following a recent wave of kidnappings linked to online fraud operations, South Korea imposed a travel ban on certain regions of Cambodia. Meanwhile, the U.S. Treasury, in collaboration with the United Kingdom, exposed a multibillion-dollar cryptocurrency scam network, implicating Cambodian conglomerates in sanctions, asset seizures, and legal charges.

Since this week, South Korean citizens have been banned from visiting areas such as Mount Bokor in Kampot province, where the body of a Korean student allegedly held and tortured by a local criminal group was found. The tightening of the travel policy comes after reports of 330 South Korean citizens being kidnapped or held against their will in the first eight months of 2025, to be forced to work in clandestine compounds operating online fraud.

Inside these centers, victims—often of various nationalities—are coerced into carrying out "pig-butchering" and other cryptocurrency frauds using tools such as artificial intelligence, chatbots, and face swapping. An estimated 200 individuals work at these facilities, approximately 1.000 of whom are Korean, according to National Security Advisor Wi Sung-lac.

There are peculiar cases among those involved: some were voluntarily lured to Cambodia and, upon trying to leave the country, were prevented from returning. "In a sense, they are both victims and offenders at the same time," Wi stated.

To contain the diplomatic crisis, Seoul sent an interagency delegation to Phnom Penh. Cambodian Prime Minister Hun Manet expressed "regret and sorrow" over the death of the South Korean student and pledged to "arrest the suspects currently at large and to protect South Korean nationals in Cambodia." Despite this, there are signs of local collusion: Cambodian police authorities reportedly refused to close the fraudulent complexes, even in the face of allegations of human rights abuses.

On the international front, the U.S. Treasury identified the Prince Group conglomerate as the operator of a cryptocurrency scam network and claimed to have seized approximately 127.271 bitcoins, equivalent to approximately US$15 billion, controlled by Chen Zhi, who is accused of leading the schemes. The charges include conspiracy to commit wire fraud and money laundering.

The scheme also involves DW Capital, a family office in Singapore linked to Chen, suspected of laundering billions in cryptocurrency through fraudulent investments. Singaporean authorities are investigating possible violations related to tax incentives granted.

Chen remains at large and faces up to 40 years in prison if convicted. Meanwhile, the impact on the global crypto ecosystem is increasing pressure for international action against cryptocurrency fraud and human trafficking.