- US Treasury hit 9 Myanmar and 10 Cambodian entities for crypto fraud with forced labor.
- Pig-butchering scams drained billions from Americans using fake trading platforms.
- Americans lost $10B in 2024, a 66% surge, as Southeast Asian scam networks grew.
The US Treasury Department has imposed sanctions on 19 entities across Myanmar and Cambodia for operating large-scale cryptocurrency investment fraud networks that use forced labor to target American victims. The September 8 announcement is an escalation in efforts to combat transnational cybercrime operations that have cost Americans over $10 billion in 2024 alone.
The sanctioned operations primarily conduct “pig butchering” scams, where criminals develop romantic or investment relationships with victims over months before gradually extracting increasingly larger financial sums. These schemes involve fake trading platforms that display fictitious returns to convince victims to transfer more money until their savings are completely drained.
Forced Labor Operations Span Multiple Countries
Nine Myanmar entities face sanctions for operating under the protection of the already-sanctioned Karen National Army in Shwe Kokko city. Key individuals targeted include Tin Win, Saw Min Min Oo, and She Zhijiang, along with companies such as Chit Linn Myaing Co. and Yatai International Holdings Group that facilitate these criminal operations.
Ten Cambodian targets include four individuals and six organizations running scam compounds housed in hotels, casinos, and office buildings. The Treasury identified Dong Lecheng, Xu Aimin, Chen Al Len, and Su Liangsheng among the sanctioned individuals, while targeting entities including T C Capital Co., K B Hotel Co., and HH Bank Cambodia.
These Operations Threaten American Financial Security
Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley emphasized that these operations force tens of thousands of people into modern slavery while threatening American financial security. The sanctions aim to disrupt organized financial crime networks that use debt bondage, violence, and sexual exploitation to coerce victims into conducting online fraud.
The criminal networks operate sophisticated recruitment schemes that lure job seekers into scam camps under false employment promises. Once trapped, victims face threats of violence and forced prostitution unless they participate in targeting strangers through messaging applications and direct text communications.
The $10 billion in American losses during 2024 represents a 66% increase from the previous year. This shows the growing scale of Southeast Asian-based cybercrime operations. Global estimates suggest victims worldwide have lost approximately $75 billion to these regional scam networks between 2020 and 2024.
Related: US Treasury Secretary Makes Stunning Admission on Stablecoins and National Debt
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Source: https://coinedition.com/us-treasury-sanctions-19-groups-in-myanmar-cambodia-over-crypto-scam-networks/
