Washington: The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), in collaboration with the United Kingdom's Foreign, Commonwealth, and Development Office (FCDO), have announced joint actions against criminal networks responsible for international online scams and the laundering of stolen funds. OFAC has implemented extensive sanctions against 146 entities within the Prince Group Transnational Criminal Organization, a Cambodia-based network led by Chen Zhi. This organization has been involved in online investment scams targeting global citizens, including Americans, according to a statement from the Department of the Treasury. Additionally, FinCEN has finalized a rule under section 311 of the USA PATRIOT Act, effectively cutting off the Huione Group from the U.S. financial system, citing its involvement in laundering proceeds from virtual currency scams.
According to Kuwait News Agency, Secretary of the Treasury Scott Bessent highlighted the significant financial damage caused by transnational fraud, with American citizens losing billions of dollars. He emphasized the importance of international cooperation in combatting these threats and safeguarding Americans from foreign scammers. The U.S. government estimates that Americans lost at least USD 10 billion to Southeast Asia-based scams in 2024, marking a 66 percent increase from the previous year. The Prince Group TCO has been identified as a major player in these scams, particularly within Cambodia's scam economy, controlling illicit financial flows worth billions.
The U.K.'s FCDO has also imposed sanctions on the Prince Holding Group, Chen Zhi, and his associates. These actions coincide with the unsealing of a criminal indictment against Chen Zhi in the U.S. District Court for the Eastern District of New York. The coordinated effort involved the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of New York, and the U.K.'s FCDO.
In parallel with the sanctions, FinCEN issued a final rule under section 311, severing ties between Huione Group and the U.S. financial system. Huione Group has been identified as a key facilitator for laundering proceeds from cyber heists by the Democratic People's Republic of Korea and other transnational criminal organizations in Southeast Asia. Between August 2021 and January 2025, Huione Group reportedly laundered at least USD 4 billion in illicit proceeds, including USD 37 million from DPRK cyber heists and USD 36 million from virtual currency scams. The rule prohibits U.S. financial institutions from processing transactions involving Huione Group, aiming to prevent its indirect access to the U.S. financial system.