Chinese users protest as Cambodia’s Huibang Payment accounts are frozen, leading to bloody clashes

Dozens of Chinese residents gathered outside the National Bank of Cambodia to protest, demanding that funds in Huione Pay (Huifang Pay) platform accounts be unfrozen. The on-site protest escalated into physical clashes, leaving people injured, reflecting the subsequent impact of Cambodia’s crackdown on transnational money-laundering crimes on Chinese users. Li Xiong, the former chairman of the Huione Group, has been accused by Chinese authorities of being involved with telecom fraud linked to the Taizi Group. Accounts for the group’s online payment platform have been frozen since December of last year.

Physical clashes erupt after Chinese accounts are frozen

On the morning of the 27th, more than 100 demonstrators—including Chinese citizens and local merchants in Cambodia—went to the headquarters of the National Bank of Cambodia in Phnom Penh to protest. These users said that their accounts opened on the Huione Pay platform were frozen without warning starting in December of last year, preventing them from withdrawing savings and working-capital funds. Some builders were unable to pay employees’ wages because their funds were frozen. During the protest, crowds clashed with on-site security personnel, causing at least two protesters to bleed and be injured. Cambodian police later arrested two Cambodian nationals, accusing them of allegedly illegally blocking roads and inciting unrest; the situation at the scene briefly spiraled into chaos.

The Huione Group is directly singled out by the U.S. Department of the Treasury as a co-conspirator in fraud and money laundering

The National Bank of Cambodia’s revocation of Huione Pay’s business license was the main reason the platform’s accounts were frozen on a large scale. The group has been accused of having a high degree of connection to Southeast Asian telecom fraud activities. A prior investigative report from the U.S. Department of the Treasury said the Huione Group was suspected of laundering billions of dollars in illegal funds for Southeast Asian scam groups, including proceeds from “pig butchering” scams targeting victims around the world. By revoking Huione Pay’s license, the National Bank of Cambodia sought to cut off the funding chain of transnational criminal groups.

Chinese law enforcement authorities accuse Li Xiong, former chairman of the Huione Group, as a core member of the fraud ring

Li Xiong, former chairman of the Huione Group (Li Xiong), was repatriated to China on April 1. According to an investigation by Chinese law enforcement authorities, Li Xiong was regarded as a core member of a transnational fraud group, and had close ties with Chen Zhi-guan, the founder of the “Taizi Group” that had already been taken into custody. With successive arrests of senior executives of these fraud enterprises, an entangled network of interests involving gambling in Cambodia, payment platforms, and telecom fraud was revealed. In recent years, the governments of China and Cambodia have strengthened joint law enforcement efforts, targeting scam parks in places such as Sihanoukville and the financial support system behind them. Li Xiong’s case being brought to justice is seen as an important crackdown action by China.

In recent years, the Cambodian government has faced international public-opinion accusations that it has taken no proactive action against fraud and anti-money-laundering. This time, the incident in which Huione’s Chinese users staged bloody protests brought to light both the crackdown on illegal financial activity and the predicament faced by ordinary users. Many merchants engaged in legitimate trade in Cambodia believed Huione to be a compliant financial institution in Cambodia and were accustomed to using the platform for daily settlements, only to find their assets frozen. At present, the Cambodian authorities have not yet put forward a clear remedy plan for disbursing funds from legitimate sources. During the process of cross-border law enforcement and the restructuring of the financial system, affected Chinese nationals face the risk of lengthy legal proceedings and their assets becoming zero.

This article, “Chinese users protest that Huione Pay accounts in Cambodia were frozen, triggering bloodshed and clashes,” first appeared on Lian News ABMedia.