Sihanoukville Casinos Received Over $1 Billion in Crypto Despite Crackdown
Casinos in the Cambodian coastal city of Sihanoukville processed approximately $1.07 billion in cryptocurrency between January 1 and September 7, 2026, according to a report by blockchain intelligence firm TRM Labs. This figure emerged despite a government crackdown on scam compounds and international sanctions targeting associated networks.
Sanctioned Entities Account for Majority of Crypto Inflows
The TRM Labs report identified 34 physical casinos in Sihanoukville that received these cryptocurrency funds. A significant portion, $687 million or 64% of the total, flowed to casinos linked to networks designated by the U.S. Treasury’s Office of Foreign Assets Control (OFAC).
The analysis revealed that crypto continued to reach sanctioned casino operators for months after U.S. authorities announced their designations. Between April 23 and September 7, entities connected to Xihu Resort Hotel received $184 million. Separately, entities attributed to Huan Hai Bo Lai International Investment garnered $129 million during the same period. A casino associated with Jin Bei Group received $9 million following the October 2025 designation of Prince Group and its related entities.
Declining Monthly Inflows Mask Persistent Activity
While the overall figures remain substantial, monthly cryptocurrency inflows to casinos appear to have decreased. Casinos averaged $148 million per month in crypto between January and May. This figure dropped to around $95 million in July and August. For designated casinos specifically, monthly inflows fell from an average of $100 million to approximately $48 million.
However, TRM Labs suggests this decline may not present a complete picture. Casino operators are known to frequently alter their wallet addresses, complicating transaction tracking. It is possible that some funds are now being routed through wallets that investigators have yet to identify.
USDT Dominates Transactions, Crypto-to-Cash Network Remains Active
The report also highlighted that USDT on the TRON blockchain constituted 99.9% of all cryptocurrency received by the casinos. TRM Labs attributed this preference to factors such as low transaction fees, robust liquidity, and widespread adoption across Southeast Asia.
On-the-ground observations indicate that Sihanoukville’s crypto-to-cash conversion network remains operational. Casinos continue to accept USDT at their cashier desks, converting it into chips and U.S. dollars with seemingly minimal customer due diligence. Pawnshops, convenience stores, hotels, phone shops, and exchange counters are also offering crypto-to-cash services.
Broader Economic Slowdown Evident Despite Crypto Flows
This persistent crypto activity is occurring against a backdrop of a broader economic slowdown in Sihanoukville. TRM reported that several businesses catering to workers in scam compounds have either closed or scaled back their operations. Casino floors, which were reportedly bustling in 2025, are now operating below capacity, according to local observations.
Cambodia has faced increasing international pressure to dismantle scam operations linked to 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 U.S. has also targeted networks associated with the sector. In April 2026, OFAC sanctioned Cambodian Senator Kok An, along with 28 related individuals and entities, for alleged involvement in scam center operations that defrauded Americans.
TRM Labs concluded that the latest figures suggest that enforcement actions have not halted cryptocurrency flows to casinos connected to designated networks.
