Sihanoukville Casinos Received $1.07 Billion in Crypto Despite Cambodia's Crackdown

Casinos in Sihanoukville took in roughly $1.07 billion in cryptocurrency between January 1 and September 7, 2026, even as Cambodia pressed ahead with its crackdown on scam compounds, according to blockchain analytics firm TRM.

Sihanoukville has long anchored Cambodia's casino sector, which the government confined to land-based venues when it banned online gambling in 2019. TRM tracked 34 casinos in the coastal city and attributed $687 million — 64% of the total — to establishments linked to networks sanctioned by U.S. authorities. The funds kept arriving even as casino operators reported quieter gaming floors and surrounding businesses closed or scaled back operations.

Sanctions Failed to Stem the Flow

On April 23, the U.S. Treasury's Office of Foreign Assets Control (OFAC) sanctioned Cambodian Senator Kok An and 28 associated individuals and entities. The targets included Huan Hai Bo Lai International Investment Co Ltd and Xihu Resort Hotel Co Ltd. OFAC designations generally bar U.S. persons and companies from transacting with listed parties and expose any U.S.-touched assets to blocking, cutting targets off from the dollar system.

The designations did not stop the money. Between April 23 and September 7, TRM attributed $184 million in inflows to entities linked to the Xihu casino and another $129 million to entities tied to Huan Hai. The persistence reflects how sanctions operate on-chain: designations attach to named entities and known addresses, while balances can shift to newly created wallets.

Frequent wallet changes made year-over-year comparisons difficult for most casinos. Huan Hai's inflows reached $264 million through September 7, up from $90 million during the same period in 2025. TRM cautioned, however, that the network's different clientele limited comparisons with smaller casinos.

Inflows Decline as USDT Conversions Continue

Cambodia's anti-scam commission said on September 8 that authorities had revoked 18 casino licenses and suspended nine. TRM's tracking window closed on September 7, one day before the announcement, so the published totals do not reflect inflows after the license actions. Monthly inflows across the tracked casinos averaged $148 million from January through May, then fell to about $95 million in July and August.

Establishments linked to the designated networks accounted for most of that decline, with monthly receipts dropping from roughly $100 million to $48 million. TRM warned that operators moving funds to newly unidentified wallets could make the decline appear larger than it actually was.

On the ground, the crackdown was visible: exchange shops, restaurants and convenience stores had closed or reduced services, and operators described casino floors running well below 2025 capacity. Even so, TRM observed casinos accepting USDT — the U.S. dollar-pegged stablecoin issued by Tether — at cashier desks and converting it into chips and U.S. dollars with limited customer due diligence.

Cryptocurrency conversions also persisted beyond the casinos. Hotels, phone shops, pawnshops and exchange counters continued offering the service — some openly advertising "$USDT Exchange," while others appeared to rely on referrals.

USDT on the TRON network accounted for 99.9% of tracked casino inflows, and every cryptocurrency exchange service TRM observed also settled in the stablecoin. TRM attributed that preference to low fees, deep liquidity and widespread regional adoption. That near-total reliance on a single issuer-controlled stablecoin concentrates settlement in an instrument whose issuer can freeze balances at specific addresses — a capability that has been used in past enforcement actions.