Cambodia reacts to US sanctions on tycoon linked to forced labor

On Friday, Cambodia's foreign ministry expressed strong disapproval of U.S. sanctions imposed on Ly Yong Phat, a prominent tycoon linked to forced labor and human trafficking allegations. The U.S. Treasury Department's sanctions, announced on Thursday, target Ly Yong Phat and five of his businesses due to their involvement in serious human rights abuses related to online investment scams. This action blocks his assets in the U.S. and prohibits American entities from engaging with him. The Cambodian government characterized the sanctions as unjust and politically motivated, arguing that they could damage bilateral relations. They claimed the U.S. decision was based on unverified reports and did not accurately reflect Cambodia's commitment to human rights and law enforcement. The statement also highlighted Ly Yong Phat's contributions to the country's socio-economic development through his business ventures. Ly Yong Phat, a senator and influential member of the ruling Cambodian People's Party, has not faced direct human trafficking charges. However, his casino has been raided multiple times, leading to the rescue of individuals forced to work in illegal operations. Victims reported severe mistreatment, including physical abuse and extortion. The U.S. sanctions come amid growing concerns over cybercrime originating from Southeast Asia, particularly scams that exploit victims through deceptive online practices. The Cambodian government has previously faced criticism from Washington regarding human rights issues, and this latest development may further complicate the already strained relations between the two nations.