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UK freezes London properties in Cambodia crypto scam sanctions

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UK freezes London properties in Cambodia crypto scam sanctions

The UK has sanctioned the operator of one of Cambodia’s largest scam compounds, and a major crypto-based Southeast Asia marketplace that sells stolen personal data to traffickers.

The measures are part of a wider international effort and seeks to protect UK residents from being scammed, aid Cambodia in its crackdown, and help stop human rights abuses.

The newly sanctioned firm Legend Innovation Co, and its director, Eang Soklim, ran a compound called #8 Park. The facility is believed to be the country’s largest such compound and can house up to 20,000 trafficking victims. 

This compund is connected to the South Asian conglomerate Prince Group and its head, Chen Zi, who was arrested and extradited to China earlier this year. 

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The sanctions also targeted two of Chen’s allies, Thet Li, and Hu Xiaowei.

The front of the #8 Park scam compound in Cambodia, otherwise known as Legend Park (Credit Cyber Scam Monitor).

Read more: Cambodia has deported 48K foreigners since scam center crackdown began

One of the largest crypto-based criminal marketplaces, Xinbi, was also sanctioned.

Xinbi sells stolen personal data and satellite equipment to traffickers and has helped launder crypto assets stolen by North Korea. 

The UK said the sanctions “will isolate the platform from the legitimate crypto ecosystem, significantly disrupting its operations by affecting its ability to send and receive cryptocurrency transactions.”

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Crypto analytics firm Elliptic claims that Xinbi’s inflows have reached over $19.7 billion.

BSquare Technology, the sister firm of a Prince-linked crypto exchange BYEX, was also sanctioned today, alongside a Myanmar-based triad leader, and the wife of a Prince Group operator.

As a result of the latest sanctions, a number of London properties will be frozen. They join assets frozen as a result of previous action against the network, including a £100 million ($133 million) office block, two mansions, and a helicopter.  

Joint effort to stop human trafficking scam networks

According to a UK government press release, “Across Southeast Asia, scam centers are using sophisticated schemes, including scams in which people are lured into fake romantic relationships, to defraud victims on an industrial scale, including in the UK.”

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It added, “Today’s sanctions will have an immediate effect, further immobilising this scam network and its financial enablers, who have profited from the exploitation of vulnerable people.”

Read more: Billion-dollar scammer Chen Zhi arrested in Cambodia, extradited to China

Last month, Cambodia claimed to have deported over 48,000 foreign individuals recovered from scam center raids. Local authorities also claim to have targeted 2,500 compounds so far. 

The government’s crackdown followed mounting international pressure from countries including China, the US, and South Korea. 

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Indeed, China has been busy executing scam center leaders, while the UK and the US sanctioned the Prince Group last year. This in turn led to the closure of the Prince Group-linked crypto exchange BYEX.

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Stragegy’s (MSTR) STRC shares rebound to par value faster than historical average to enable more BTC buying

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Stragegy's (MSTR) STRC shares rebound to par value faster than historical average to enable more BTC buying

Stretch (STRC), the perpetual preferred equity issued by Strategy (MSTR), the world’s largest corporate holder of bitcoin, reclaimed its $100 par value during Thursday’s trading session, giving the company the leeway to raise funds to add to its stash of the largest cryptocurrency.

The recovery took nine trading days following the March 13 ex-dividend date, when buyers of the stock no longer qualify for the next payout. Prices of ex-dividend stocks typically drop to reflect the cash being distributed to the previous shareholders.

At its core, STRC works by adjusting yield to steer price. If shares trade above $100, the company can trim the dividend to cool demand. If shares fall below that level, it can raise dividends to attract buyers. Keeping the price anchored lets the firm issue new shares near par, bringing in capital that is then deployed to buy bitcoin.

The return to par, this time, was slightly faster than the historical average of around 10 trading days for STRC, according to STRC.live.

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STRC functions as a short-duration, high-yield credit instrument, offering an 11.5% annual dividend paid monthly. This structure helps incentivise trading near its $100 par value, enabling the company to utilise at-the-market (ATM) share issuance to raise capital for additional bitcoin acquisitions.

In comparison, SATA, the equivalent tool issued by bitcoin treasury company Strive (ASST), offers a higher 12.75% dividend. Currently priced at $99.25, it is also approaching par value.

Strategy bought 1,031 bitcoin last week for a total cost of $76.6 million, or $74,326 per coin. However, the magnitude of that buy was far lower than that of recent acquisitions, and STRC wasn’t at par during last week’s bitcoin purchase.

The firm’s holdings now stand at 762,099 bitcoin, bought for approximately $57.69 billion, at an average price of $75,694 per bitcoin.

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Read more: Michael Saylor’s Strategy dominates DAT bitcoin buying as treasury demand collapses

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TradFi Is Buying Bitcoin Again, But War, Inflation May Unravel The Rally

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TradFi Is Buying Bitcoin Again, But War, Inflation May Unravel The Rally

Bitcoin’s (BTC) consolidation continued into Thursday as bulls struggled to keep hold of $70,000, and competing narratives on BTC’s market structure versus its increasing institutional adoption clashed with the bearish overarching factors negatively impacting US equity markets. 

Citing Bernstein’s $150,000 by the end of 2026 price estimate, Bloomberg analysts said that data shows institutional investors returning to the Bitcoin markets in droves, reinforcing the view that BTC had “reached a floor.”   

In early March, a week-long stretch of inflows to the spot Bitcoin ETFs nearly topped $1 billion, while Strategy purchased 22,237 BTC for $1.6 billion through its new perpetual preferred equity, Stretch (STRC). In addition to the success of STRC, Strategy also unveiled plans to raise capital to buy $44.1 billion in additional Bitcoin. 

Further proof of institutions stepping back into the crypto market came from $10 trillion asset manager Morgan Stanley filing documents to launch its own spot Bitcoin ETF. Morgan Stanley recommends investors maintain a 2% to 4% allocation to cryptocurrencies, and on March 26, a proposed Labor Department rule, which would permit brokerages that manage and offer services in the $10 trillion 401(k) retirement plan market to invest in Bitcoin, progressed through the White House’s regulatory review process.  

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On Thursday, Coinbase also launched token-backed down payments for Fannie Mae loans, essentially permitting Bitcoin holders to use BTC and USDC to fund home mortgages. The offering allows investors holding Bitcoin to unlock the trapped liquidity of BTC without selling or generating a taxable event. 

Related: US Bitcoin ETFs post 6-day inflow streak as crypto rallies

How important is Bitcoin’s $70,000 support?

While institutional investors’ renewed interest in buying Bitcoin has clearly returned, BTC’s price volatility and its inability to break out of a near 6-month price downtrend remain clear hurdles. The ongoing US-Israel and Iran war, along with President Trump’s threat to send ground troops to Iran continues to negatively impact stock markets and cryptocurrencies. 

On Thursday, in a Truth Social post, President Trump said Iran’s negotiators had “better get serious soon, before it is too late, because once that happens there is NO TURNING BACK, and it won’t be pretty!” The clear buildup of US military assets deployed to the Middle East has markets worried that a ground operation could begin as early as this weekend. 

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Truth Social post from President Donald Trump. Source: Truth Social

Following a series of comments from the President, US markets sold off, with the DOW shedding 400 points, while the S&P 500 and Nasdaq saw 1.49% and 2.07% respective losses. On the other hand, WTI crude oil and Brent Crude rallied, with each seeing gains of over 4%.

With growing uncertainty on which direction the US-Israel and Iran war takes and the longer-term impact of record-high oil prices on US inflation and the wider economy, investors are electing to decrease their exposure to volatility. 

BTC/USD 1-day chart. Source: TradingView

This explains Bitcoin’s frequent re-visits to prices below $70,000 along with the short-lived nature of rallies in the $71,000 to $76,000 range. That said, one positive is that institutional and retail investors appear to view $70,000 and below as an optimal buying zone, thus reinforcing the level as support.