Bangladesh, Dec. 20 -- When the United States announced sweeping sanctions against Cambodias powerful Prince Group in October, the move was framed as a decisive strike against what Washington labeled a “Transnational Criminal Organization.” The conglomerate, with more than 100 companies spread across 30 countries, was accused of operating cyber-scam compounds built on human trafficking, forced labor, and industrial-scale fraud. Yet buried deep within the sanctions notice was a name that appeared almost incidental: Chen Xiaoer, described merely as a business partner of Prince Group founder and chairman Chen Zhi in a single overseas project.

Subsequent investigative reporting has now revealed that this characterization was prof...