Cambodian authorities arrested Darren Yaw, co-founder of Guardian Capital AG, in Phnom Penh on allegations of operating a Ponzi scheme. His wife was also detained but later released on bail, though she remains unable to leave the country. Yaw is still in custody.
The arrests followed claims by Guardian Capital AG that the Cambodian government had approved its operations. The company posted a photograph of Prime Minister Hun Sen on its website, asserting his personal endorsement and attendance at a planned May 20th ribbon-cutting ceremony. Prime Minister Hun Sen issued a public statement vehemently denying these assertions. He explicitly stated that he requested all relevant authorities to monitor and investigate the offenders, promising punishment under the law. He also cautioned citizens and businesspeople against unauthorized digital coins claiming government backing.
Guardian Capital AG also falsely claimed endorsement from the National Bank of Cambodia and the Bank of China. Both institutions have officially denied any affiliation with the company. The Cambodian action occurs less than a month after Indonesian authorities declared Guardian Capital AG an illegal operation. Indonesia's Commodity Futures Trading Regulatory Agency stated the company lacked authorization to operate there. Prior to this ban, Yaw had claimed GCG Asia, an entity linked to Guardian Capital AG, received high praise and full encouragement from the Indonesian government.
The company is based in Malaysia, yet it is not registered to offer securities within that country either. Malaysian authorities have not yet taken action against Guardian Capital AG. Earlier this year, ScamTelegraph reviewed Guardian Capital AG and concluded its business model was characteristic of a typical multi-level marketing trading Ponzi scheme. Following Yaw's arrest, the company's websites were taken offline.
In a separate development, Darren Yaw was convicted in October 2019 for his role in the GCG Asia Ponzi scheme. He received a one-year prison sentence, serving five months before his release. Post-release, Yaw has reportedly attempted to obscure his involvement by disseminating misinformation and issuing false DMCA takedown notices.
Further complicating matters, Darren Yaw and nine other alleged GCG Asia accomplices were arrested in Malaysia on September 17, 2022.