On April 1, amid an onslaught of Chinese cybercrime in Southeast Asia, Cambodia extradited to China Li Xiong, the former chairman of Huione Group, which was banned from the US financial system last year for embezzling US$336 million from cyber fraud between 2021 and 2025. The US was also has been approved Huione’s parent company, Prince Group, and indicted founder Chen Zhi. In January, Cambodia to be handed over Chen headed to China, to secure the arrest of a man accused of being Cambodia’s kingpin of scandal.
The withdrawal came after similar but uncoordinated efforts from the United States and China.
This pressure has forced Cambodia to crack down on fraudulent activities, promising to eradicate the industry by the end of this month. The government claims to have encroached on about 250 areas and has passed a law imposing severe penalties on offenders.
But this seems to have only scratched the surface. The deeper system remains intact, protected by a politically connected elite that can emerge unscathed. The next step in the fight against the cybercrime epidemic dictates the same combination that brought down Li and Chen: strengthening the US economy and China’s operational efforts.
It is a rare moment of mutual interest and should be on the agenda, with US President Donald Trump expected visit Beijing next month.
Both Chinese and Americans have been targeted by a fraudulent industry operating out of Cambodia, worth as much as 19 billion US dollars every year. The industry, which flourished during the Covid-19 pandemic, started by defrauding Chinese citizens but China’s strong anti-scam campaign has caused operators to turn their attention elsewhere. In 2024 alone, Americans lost an estimated US$10 billion to Southeast Asian fraudsters.
