Casinos in Sihanoukville, Cambodia, received approximately $1.07 billion in cryptocurrency between January 1 and September 7, 2026, according to a report by blockchain intelligence firm TRM Labs. This occurred despite a government crackdown on scam compounds and international sanctions targeting linked networks.
The report detailed that 34 casinos in the coastal city processed these funds. Notably, casinos connected to networks sanctioned by the US Treasury’s Office of Foreign Assets Control (OFAC) accounted for $687 million, representing 64% of the total amount.
US Sanctions, Closures and Raids
TRM Labs observed that crypto continued to flow to sanctioned casino operators for months following designations by US authorities. Between April 23 and September 7, entities linked to Xihu Resort Hotel received $184 million, while those attributed to Huan Hai Bo Lai International Investment obtained another $129 million in the same period. A casino associated with Jin Bei Group received $9 million after the October 2025 designation of the Prince Group and related entities.
Despite these ongoing transactions, monthly crypto inflows show a declining trend. Casinos averaged $148 million per month from January to May, dropping to about $95 million in July and August. Inflows to designated casinos decreased from an average of $100 million monthly to approximately $48 million.
However, TRM Labs suggests this decline might not present the complete picture, as casino operators often change wallet addresses, complicating transaction tracking. Some funds could be moving through unidentified wallets.
The study also revealed that USDT on the TRON blockchain constituted 99.9% of all crypto received by the casinos, attributed to its low transaction fees, strong liquidity, and widespread use in Southeast Asia.
Field observations indicate the city’s crypto-to-cash network remains active. Casinos continue to accept USDT at cashier desks for conversion into chips and US dollars with minimal customer due diligence. Pawnshops, convenience stores, hotels, phone shops, and exchange counters also provide crypto-to-cash services.
This activity persists even as a broader slowdown is evident in Sihanoukville. TRM reported the closure or scaling back of operations for several businesses that served scam compound workers. Local observations also indicate that previously busy casino floors are now operating below capacity.
Casino License Revocations
Cambodia has faced increasing pressure to dismantle scam operations involved in online fraud and money laundering. On September 8, 2026, the country’s anti-scam commission announced the revocation of 18 casino licenses and the suspension of nine others. The US has also targeted networks associated with the sector, with OFAC sanctioning Cambodian Senator Kok An and 28 related entities in April 2026 for alleged involvement in scam center operations defrauding Americans.
TRM Labs stated that the latest figures suggest enforcement actions have not halted crypto flows to casinos linked to designated networks.
