The U.S. Treasury Department's Office of Foreign Assets Control issued sanctions Thursday against Cambodian entrepreneur and senator Ly Yong Phat, for his "role in serious human rights violations related to the treatment of trafficked workers subjected to forced labor in online fraud centers."

The office claimed that Ly owns a conglomerate called LYP Group which in turn owns O Smach Resort.

The facility is believed to be a forced labor camp run by cyber fraudsters promoting scams that have seen victims defrauded after making what they were told would be lucrative investments in cryptocurrency or foreign currency.

Forced laborers promote the schemes under duress.