After recent investigations, a link between crypto scams and human trafficking in Cambodia has been revealed. In a shocking discovery, the Cambodian government uncovered a network of digital currency traders running an illicit business, with funds directly connected to cases of human trafficking in the country. A dark side to the booming crypto industry, this report provides insight into the dangers of illicit crypto activities.
1. Crypto Scam Exposes Human Trafficking in Cambodia
A Cambodian crypto scam that marked the nation’s largest-ever financial scandal appears to have had a role in financing human trafficking.
- The Scam: Over four million Cambodian citizens became ensnared in the scam, which worked by convincing people to transfer money from their bank accounts to funds supposedly investing in digital currency. In reality, the funds were simply a facade for siphoning public funds.
- Human Trafficking Exposes: It is now discovered that a human trafficking network operating out of the country’s northeast provinces was actively receiving funds from these sham accounts. The fraudsters, in their efforts to launder the money, allegedly set up multiple companies in the same region as a front to divert funds and shield them from law enforcement.
The authorities have since arrested several of the main actors behind the scheme, including the founder of the fake digital currency investment platform. The investigations have revealed potential links to organized crime and corruption within the political leaders and government officials of Cambodia.
Further arrests are expected as the investigation continues, and authorities are hopeful that the crypto scam can be an entry point in exposing and disrupting human trafficking operations. The latest revelations have, however, raised fears that these networks have been deeply entrenched in Cambodian society and may have been operating for a lengthy period of time.
2. Victims of Crypto Scam Kept in Unsanitary Living Conditions
Recent investigations into the atrocious living conditions of crypto scam victims held against their will have revealed a hidden side to cryptocurrency-related crime. Found in numerous remote locations, several victims were illegally detained in conditions of increasing unsanitary living. Without medical attention, a lack of access to hygiene and nutrition, and exposed to extreme temperatures, the unfathomable consequences of these incidents are innumerable.
Reported cases of kidnappings and detainment were not only confined to China, but across the globe. According to research carried out by the United Nations, it is estimated that up to 16 million people are victims of human trafficking around the world. Additionally, it is believed that over one million people each year are used as leverage in connection with cryptocurrency-related crimes.
- Victims were kept in unsanitary living conditions
- Confinement exposed victims to extreme temperatures
- Research conducted by the UN shows up to 16M people are victims of human trafficking annually
- It is estimated up to 1M people each year are involved in crypto-related crimes
3. Authorities Take Action Against Traffickers
In the fight against human trafficking, both local and international authorities are taking legal action on traffickers. Governments around the world have implemented laws to punish those who commit trafficking crimes and victims are increasingly getting aid and support.
Victim-Centric Laws:
- In January 2020, the US government signed the International Megan’s Law, which mandates life-time sex offender registration for international travellers convicted of child sex crimes and enables the notification of foreign governments when US citizens convicted for such crimes travel abroad.
- In June 2019, the European Union Agency for Law Enforcement Cooperation (Europol) conducted a large-scale, month-long action to fight human trafficking – resulting in the arrest of more than 200 alleged traffickers and the identification of over 600 victims.
Increased Support for Victims:
- Several countries have increased investments in social services and support for victims of trafficking. For instance, in the US, the Victim of Trafficking Program, developed in 2017, is providing extensive services, such as medical care,onomic security and legal aid, to victims of human trafficking.
- In the UK, the National Referral Mechanism, launched in 2009, enables authorities to identify victims of trafficking and provide them with access to essential social services.
The findings of this crypto scam investigation show that the power of applied blockchain technology can be used for more good than bad. Just as blockchain and cryptocurrency can disrupt in finance, it is also being used to help uncover and dismantle potential crimes taking place in the world. While this investigation revealed only one instance of human trafficking in Cambodia, the case shows us the urgency of continuing to fight and bring perpetrators of such crimes to justice.