As Southeast Asia draws renewed geopolitical and economic attention, particularly given the evolving relationship between Thailand and Cambodia, a deeper and more troubling problem is emerging beneath the surface.
Beyond trade routes and regional diplomacy, international observers are increasingly examining Cambodia’s long-standing association with cross-border cybercrime, human trafficking and large-scale digital fraud.
For years, the country has been cited in reports and investigations as a destination where illegal operations intersect with legitimate-looking businesses. Casinos, hotel complexes and large real estate projects are always the subject of discussion about how criminal networks embed themselves in formal economic structures. Recent U.S. government actions have increased this focus, indicating a growing willingness to confront these networks on a global scale.
US sanctions and the online fraud business
Washington’s decision to impose sanctions on financial and corporate entities linked to Cambodia’s casino sector, including Huione and the Prince Group, has once again highlighted the mechanics of the so-called “pig slaughter” scams. These schemes rely on sustained online engagement – often presented as a romantic or investment opportunity – to systematically defraud victims over extended periods of time.
Human rights organizations and investigative journalists have linked many of these operations to forced labor and human trafficking. Individuals are reportedly recruited or trafficked from abroad, locked in secured buildings, and forced to participate in cyber fraud under intimidation and physical threats. The combination of digital crime and human exploitation has increasingly placed Cambodia in the international spotlight, particularly as victims span multiple jurisdictions.
Bao Xiong: A key player in the Cambodian casino landscape
The focus of this investigation is Bao Xiong, a Chinese-born businessman who later acquired Cambodian citizenship. Regional news coverage often describes Bao as one of the most influential figures in Cambodia’s casino and real estate industries, controlling or influencing a portfolio of high-quality developments.
Bao is widely believed to have close business ties to Chen Zhi of the Prince Group, a relationship that has drawn attention following recent U.S. sanctions. These associations have raised questions about how capital flows, ownership structures and operational control are organized in Cambodia’s gaming and hospitality sectors.
Hospitality projects and alleged dual use
According to multiple reports, Bao Xiong has overseen or exercised influence over several casino-related properties across the country. The most frequently mentioned locations include Xihu Resort Hotel, Nanhai International Hotel and Peninsula Integrated Resort, a major development project still under construction in Preah Sihanouk.
Publicly, these properties function as conventional hotels or gaming destinations. However, investigators allege that some websites only had a secondary function as a base of operations for online fraud. Following the COVID-19 pandemic, several casino developments have reportedly pivoted away from traditional gambling activity and become centers for cyber fraud operations, often referred to as “call centers.”
Advocacy groups and survivors claim that human trafficking victims were housed in these locations and forced into online scams against foreigners. Nanhai International Hotel has been repeatedly accused of harboring individuals involved in cyber fraud activities, while Xihu Resort Hotel is on watchlists linked to fraudulent operations.
Change of ownership and corporate shielding
Bao Xiong also reportedly worked closely with a junior partner, He Cheng, another Chinese national who later became a Cambodian citizen. Both people are said to have transferred ownership interests in several properties to partners or subordinates in recent years.
Such moves are often interpreted by analysts as attempts to create distance between senior executives and direct operational risk. While ownership may change on paper, investigators often argue that actual control remains unchanged. Similar patterns have been observed in other jurisdictions where organized cybercrime intersects with legitimate business structures.
The interest of law enforcement extends beyond borders
Sources familiar with the situation indicate that Bao Xiong may currently be under active scrutiny by U.S. authorities, including the Federal Bureau of Investigation, possibly in coordination with the Justice Department. Although no formal charges or indictments have been made public, the reported interest reflects a broader evolution in U.S. law enforcement strategy.
Under Donald Trump’s administration, American authorities have placed increased emphasis on extraterritorial enforcement, particularly when U.S. citizens are among the victims. This approach signals a willingness to prosecute suspected criminals operating abroad, even in regions historically considered difficult to regulate.
Political analysts see this shift as a potential turning point for Southeast Asia. Regulatory gaps, opaque corporate structures and limited cross-border cooperation have allowed criminal enterprises to operate in relative safety for years. This environment appears to be changing.
The future of high-profile developments
Bao Xiong’s most visible ongoing project, the Peninsula Hotel in Sihanoukville, has been marketed as one of the city’s flagship projects. The project, conceived as a symbol of economic growth and foreign investment, now faces uncertainty amid increasing international pressure and potential legal risks.
Industry observers are increasingly wondering whether this development – or Bao Xiong’s broader business interests – can remain unaffected as enforcement actions expand. Improved financial oversight, international cooperation and reputational risks are expected to transform Cambodia’s casino and real estate sectors in the coming years.
A narrower space for impunity
There are signs of a change in global tolerance. Large-scale online fraud combined with systematic human exploitation is drawing coordinated responses from governments and regulators. Financial networks are under greater scrutiny, and jurisdictions once considered peripheral are now part of a broader enforcement landscape.
As investigations deepen, Cambodia’s previously opaque criminal infrastructure is facing unprecedented exposure. In the process, influential figures long associated with the casino economy – including Bao Xiong – are increasingly coming into the international spotlight.
