Crypto Scandal Hits Home, Economic Fears Intensify, Canal Evictions Loom
Good morning, Cambodia. It's Friday, July 12, and this is your Weekly Dispatch.
PILING ON: The global cyber scam industry has spawned a sub-industry to supply its evil needs, like electric shackles, shock batons and laundered money. This subsidiary is allegedly tied to the ruling family.
PRESSED UP: An ex-member of Mother Nature, the banned environmental group, switched sides and condemned The Cambodia Daily and Radio Free Asia as accomplices. A most convenient reversal for the CPP.
PRICED OUT: The Funan Techo Canal will displace thousands of families. How the government handles their compensation will greatly impact the legacy of the Strongman’s signature project. The pressure is on.
THE LEDE
Blood Lines
An $11 billion online marketplace serving the global cyber scam industry has a downtown Phnom Penh address and close ties to the ruling family.
Hun To, the Strongman’s notorious bad boy nephew, sits on the board of Huione Guarantee, an online clearinghouse for AI-generated deep fakes, electric shock bracelets, cybercrime software and money laundering services. Researchers call it the world’s largest known platform for illicit crypto transactions.
FATF, the global money-laundering watchdog, removed Cambodia from its so-called “grey list” in 2023 after years of scrutiny. How the Kingdom dodged the FATF bullet two weeks ago, when the group released its 2024 list, is anyone’s guess.
Rising One
Demining equipment, patrol boats, a Toyota plant and $60 million worth of infrastructure loans. All Cambodia had to do was say “thanks.”
Japan's foreign minister arrived bearing gifts this week, a reminder that China and the U.S. aren't the only geopolitical actors playing the long game in the Kingdom. It was Tokyo's first full-scale foray in the Hun Manet era.
What sets Japan apart from Beijing's Big Brotherhood, and Washington's sermons on rights and democracy, is a softer touch. Cambodia wants access to Japanese tech and workplace sophistication.
Hun Manet, meanwhile, is cannily diversifying his Big Power alliances. For next moves, watch Sihanoukville, where Japan has promised to help build a deep sea logistics hub.
Mixed Bag
Cambodians aren’t too excited about the country’s prospects.
“Very pessimistic” is how a majority responded to the question, How hopeful are you about the future? Respondents under 34 were the gloomiest, while those 65 and over had a more balanced view.
The bleak outlook stems in part from personal finances. Nearly 35% cited debt payments as their top financial priority, followed by reducing unnecessary expenses.
Even so, 61% viewed the Kingdom’s economy in a positive light, 43% are planning to buy a car, and 56% are planning to travel — numbers that suggest things may not be as bad as they seem.
TALKING POINTS
Costly Speech
Is democracy declining under Hun Manet's government? Hint: There’s definitely a wrong answer. Just ask Candlelight President Teav Vannol, who is fighting a $1.5 million defamation lawsuit for saying “There is no democracy in Cambodia." A verdict is expected July 25.
Paper Chase
The Cambodia Daily and Radio Free Asia are extremist groups involved in the crimes of Mother Nature — or so says a former member who defected to the government. The announcement suggests the two outlets may face charges. The shade comes as part of an apparent media blitz justifying the recent jailing of five activists — a verdict rights groups called “a national shame.”
Water Damage
Thousands of families living in the path of the Funan Techo Canal face certain eviction, yet their futures remain unknown just three weeks before construction starts. Hun Manet has used the $1.7 billion waterway as a point of national unity, saying it will allow the country to “breath through our own nose.” Poor handling of the relocations could tarnish the project, which breaks ground on Hun Sen’s 72nd birthday.
Trickle Down
Cambodia has apparently missed the boat for a decent tourism recovery. Arrivals grew by a mere 20% through May — not bad for the Kingdom, but dismal when compared to the rest of the world. The country, experts say, still faces huge challenges, including poor infrastructure, a lack of marketing and a bad reputation for human trafficking.
Bird Flu
Avian influenza is back. A 3-year-old boy in Takeo province and his 5-year-old cousin mark the sixth and seventh cases of the year. Both children reported direct contact with sick or dead birds. Health officials are scouring the area for more cases and prescribing Tamiflu as a preventive measure.
Dark Day
For the seventh year, a Caltex minimart in central Phnom Penh closed its doors on July 10 as dozens of Kem Ley supporters held vigil outside. The day marks the anniversary the beloved activist was murdered while sipping his morning coffee.
Looking Up
Good news for the Black Marsh Turtle, an endangered amphibian with white facial spots and a demeanor so adorable it's known as the "Smiling Terrapin" of Southeast Asia. Experts in Cambodia have successfully hatched one for the first time.
BACKPAGES: From The Cambodia Daily Vault
Magic Ox Found in Kompong Chhnang
July 9, 2004
An ox in Kompong Chhnang province is drawing droves of villagers who seek contact with its saliva, which is believed to be a magical curative, news media and government officials reported Thursday.
Hun Sen Agrees to Stop Samlot Dam Project
July 7, 2004
Responding to a request from US actress Angelina Jolie, Prime Minister Hun Sen said Tuesday he will stop a dam project within a protected area in Samlot district, Battambang province, funded by the Academy Award winner.
Conference on AIDS Charges $1,000 a Head
July 7, 2004
As next week’s much-hyped international AIDS conference in Bangkok approaches, critics are questioning whether the exorbitant cost of sending some 170 government, NGO and donor representatives from Cambodia could not be better spent.
WEEKEND READING
The $11 Billion Marketplace Enabling the Crypto Scam Economy
Deepfake scam services. Victim data. Electrified shackles for human trafficking. Crypto tracing firm Elliptic found all were available for sale on an online marketplace linked to Cambodia’s ruling family.
Photos: Tuk-tuk, Unsplash. Kem Ley, CENTRAL.
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