WASHINGTON, June 23 - The United States announced sanctions on Tuesday targeting nine people and 26 entities associated with the Prince Group, a Cambodian-linked conglomerate, citing an extensive campaign of cybertheft and large-scale scam operations based in Southeast Asia that have victimized Americans.
Treasury Department officials said the new measures extend a 2025 designation of the Prince Group, which holds diverse business interests across sectors such as real estate, banking, and aviation. In a statement, Treasury Secretary Scott Bessent said that "scam centers in Southeast Asia steal billions of dollars from American victims each year." The department characterized the operations as transnational criminal organizations from Southeast Asia that run large, tech-enabled fraud and scam schemes directed at people in the United States.
Treasury highlighted a U.S. government estimate that Americans lost at least $10 billion in 2024 to scam operations based in Southeast Asia, representing a 66 percent increase from the prior year. The department said the schemes frequently revolve around digital asset investment fraud, which has proven to be one of the most lucrative ruses.
As part of its action, the Treasury said the Financial Crimes Enforcement Network proposed amending its 2025 Huione Group Final Rule to explicitly include HPay Service PLC and any successor entities, signaling an effort to close channels used to move illicit proceeds.
The Treasury described the Huione Group as playing a critical role in laundering funds derived from cyber heists and virtual currency investment scams. According to Treasury, the Prince Group relied on the Huione Group to handle funds originating from its scam operations.
In parallel with the Treasury sanctions, the U.S. Justice Department announced it had seized a cloud computing account used by subsidiaries of the Huione Group. The department said those subsidiaries assisted in transferring proceeds from cryptocurrency investment frauds and other cyber scams into the legitimate banking sector.
"The Huione Group used this cloud computing account as part of a technological backbone that allowed billions in fraud proceeds to be transferred, moved, and concealed - much of it stolen through Southeast Asian scam centers," the Justice Department said in a statement.
The Justice Department further alleged that the seized account supported operations of Huione Guarantee, also known as Haowang Guarantee. The agency said Huione Guarantee was accused of using Telegram channels to discuss illegal activities, including the sale of stolen credit card information and identity data, human trafficking, and the laundering of proceeds from romance and investment scams.
Among the individuals singled out by the Treasury was Hu Xiaowei, whom authorities described as the Prince Group's second-in-command and the "big brother" to the group's leader, Chen Zhi. The Treasury said Hu Xiaowei controls three British Virgin Islands-registered companies - Eagle Fortitude Limited, Leisure Focus Limited, and Future King Inc. - and that through Future King Inc. he owns a wide network of companies used to manage funds and properties.
The Treasury recalled that Chen Zhi was sanctioned in 2025 and noted that he was arrested and extradited to China in January following a joint U.S.-China investigation into transnational crime. The department also noted that Beijing had been probing the Prince Group since 2020 and cited China’s close relationship with Cambodia.
Both the Prince Group and the Huione Group could not immediately be reached for comment, the Treasury said.
Key points
- The U.S. sanctioned nine people and 26 entities tied to the Prince Group for alleged cybertheft and scam operations targeting Americans; the action builds on a 2025 designation of the conglomerate.
- Treasury and Justice actions include a proposed FinCEN regulatory change to add HPay Service PLC to the Huione Group rule and the seizure of a cloud computing account used to transfer and conceal fraud proceeds.
- The measures cite digital asset investment fraud and the laundering of illicit proceeds into the legitimate banking sector via Huione Group subsidiaries; the scale of losses to Americans in 2024 was estimated at least $10 billion, a 66 percent increase from 2023.
Risks and uncertainties
- The extent to which designated entities and individuals can relocate or reconstitute financial and technological infrastructure remains unclear, posing ongoing enforcement challenges for financial and crypto sectors.
- Efforts to trace and recover proceeds moved through cloud services and virtual asset channels are complex, creating uncertainty for banking and compliance units tasked with detecting laundered funds.
- The involvement of multiple jurisdictions, including recent law enforcement action by China and ties to Cambodia, introduces diplomatic and procedural uncertainties for transnational investigations and prosecutions.
Authorities emphasized that these measures are part of broader efforts to disrupt networks that facilitate cyber-enabled fraud and the laundering of criminal proceeds. The Treasury and Justice Department actions seek to constrain the tools used to transfer, conceal, and integrate illicit funds into the formal financial system.