Inside the scam empire: how $44 million a day is made

In late January 2026, Chinese state media reported that 11 members of a scam network based in Myanmar had been executed. They were convicted of intentional homicide, causing serious bodily harm, unlawful detention, fraud, and operating illegal gambling businesses. GetBlock AML Research examines the inner workings of one of the largest crypto scam organizations.

Just days later, Cambodian authorities arrested Li Kuong, a major casino and real estate owner, on fraud-related charges. Thousands of people held in closed compounds were freed. More than 2,750 Indonesian nationals sought assistance from their embassy to return home.

The term “crypto scam compound” is not a metaphor. It is a physical location — often a repurposed casino or resort — where individuals are held against their will and forced to carry out online fraud schemes.

According to the United Nations, more than 220,000 people are currently confined in such centers across Southeast Asia. An estimated $44 million in cryptocurrency flows through these operations every single day.

Geography

The main hubs are located in countries where weak governance, systemic corruption, and porous borders allow such operations to function with near impunity.

Cambodia has long been considered the epicenter. One of the key service platforms supporting scam operations was an online marketplace operating through Telegram, facilitating money transfers and laundering services. Its operator was arrested in January 2026 and extradited to China. U.S. authorities imposed sanctions on several Cambodian properties, including O-Smach Resort and Koh Kong Resort, citing the use of forced labor.

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In Myanmar, large-scale operations operate in territories controlled by armed ethnic groups and criminal syndicates, beyond the effective reach of the central government. In December 2025, the U.S. Department of Justice moved to seize internet domains linked to a major scam center in Myanmar. Laos, the Philippines, and other countries in the region are also emerging as operational bases — currently on a smaller scale, but expanding.

During the 2025 conflict between Cambodia and Thailand, Thai armed forces shelled scam centers inside Cambodian territory — an extraordinary military step that underscores the scale of the problem.

Recruitment: A Disturbingly Efficient System

Victims are often young people from China, Indonesia, Vietnam, India, and other Asian countries. They are recruited through social media and job platforms with promises of high-paying positions in tech or customer service roles in Southeast Asia.

Upon arrival, their passports are confiscated. They are transported to remote, closed compounds and forced to participate in fraud schemes. Refusal is met with physical violence. Failure to meet quotas results in punishment. Escape attempts are suppressed by force.

Crypto crime reports for 2026 highlight the industrial scale of these operations and their close ties to traditional organized crime. They also emphasize the human cost: the schemes harm not only those who lose money but also those coerced into committing crimes.

The U.S. Treasury Department has described the situation in Cambodia as an example of “systemic corruption” that allows such operations to function without meaningful obstruction.

The Financial Machine

Analysts estimate that Chinese-speaking money laundering networks moved approximately $16.1 billion in illicit funds through cryptocurrency in 2025. That represents roughly one-fifth of all illegal crypto activity, which is estimated to exceed $82 billion.

A significant portion of laundering services is openly advertised on Telegram. Posts feature photos of stacks of cash as “proof of liquidity” and testimonials from satisfied clients within criminal circles.

$44 Million a Day: The Infrastructure Behind the Flow

Victims’ funds are routed through fake investment platforms or transferred directly to scammers’ crypto wallets.

The funds then pass through decentralized exchanges, cross-chain bridges, and specialized tools designed to obscure transaction trails. Cash-out occurs through centralized exchanges — sometimes with compromised KYC procedures — or via the USDT stablecoin on the TRON network.

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Ultimately, the money is converted into luxury goods, real estate, or transferred into the traditional banking system — completing the cycle of turning stolen funds into “cleaned” assets.

Research indicates that approximately 75% of crypto wallets linked to so-called “pig butchering” schemes — long-term fraud operations built on fake romantic or investment relationships — show on-chain indicators of money laundering activity.

Government Response Intensifies

The United Kingdom confiscated 61,000 bitcoins in a case linked to the Prince Group, involving asset seizures worth approximately $15 billion. In the United States, authorities have repeatedly seized domains and frozen assets. Sanctions have been imposed on Cambodian entities and individuals connected to the exploitation of people in scam compounds.

In January 2026, operators of Cambodian compounds were arrested. The operator of the online platform Huione Guarantee was extradited to China. In Brooklyn, Ronald Spector was indicted in connection with a $16 million impersonation fraud scheme.

China executed 11 members of the Myanmar-based network. The country maintains strict anti–money laundering laws, and cryptocurrency trading has been banned since 2021 — pushing some criminal operations into jurisdictions with weaker oversight.

Sanctions introduced by the U.S. Treasury in September 2025 targeted companies and individuals in Myanmar and Cambodia. The U.S. Department of Justice has expanded resources dedicated to investigating crypto-related crimes.

However, experts acknowledge a fundamental challenge: these networks are designed from the outset to evade detection. Even as enforcement intensifies, many continue to operate.