US sanctions 19 entities in Myanmar and Cambodia over cyber scam centers

The United States Treasury Department announced sanctions targeting 19 entities in Myanmar and Cambodia, accused of running scams defrauding Americans and other victims of billions of dollars. The departments estimated that close to $10 billion is lost through such scams, and they are often run by trafficked labor.  

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) revealed that nine of the sanctioned targets are in Shwe Kokko town in Myanmar, which has become the center of online scams, and ten additional sites target entities linked to scams in Cambodia.  

Treasury targets Cambodian scam hubs

John K Hurley, Secretary of the Treasury for Terrorism and Financial Intelligence, said that the designations show the dual threat posed by the networks. He added that Southeast Asia’s cyber crimes threaten the well-being and financial security of Americans, alongside thousands of subjects to modern slavery. He noted that the losses have increased by 66% compared to the previous year, now closing to $10 billion.

Marco Rubio, U.S. Secretary of State, said the measure aims to protect Americans from industrial-scale fraud, forced labor, and physical and sexual abuse. He acknowledged that Southeast Asia’s Criminal actors have increasingly targeted and exploited U.S. citizens and other foreign victims through cyber fraud. 

The sanctions targeted individuals linked to the Karen National Army (KNA), an ethnic militia group that collaborated with the Burmese military. The U.S. cited that the KNA has benefited from scam compounds in Shwe Kokko, sanctioning its leader, Saw Chit Thu, alongside his deputies, Tin Win and Saw Min Min Oo. Companies like KNA include Chit Linn Myaing Company, Chit Linn Myaing Toyota Company, Chit Linn Myaing Mining and Industry Company, and Shwe Myint Thaung Yinn Industry & Manufacturing Company. 

The Treasury also sanctioned She Zhijiang, a Chinese businessman, and his company, Yatai International Holdings Group, and Myanmar Yatai International Holding Group. ZHijiang and KNA leaders are accused of developing the Yatai New City compound in Shwe Kokk, which is linked to hosting gambling, drug trafficking, prostitution, and scam operations. Some victims reported being lured into it with false job offers, detained, and forced to run online scams; some were also forced to undergo beatings and sexual assaults. 

OFAC sanctions 10 Cambodian entities for online scam and human trafficking

In Cambodia, the sanctions targeted four individuals and six entities accused of operating scam compounds disguised as casinos, hotels, and office complexes, especially in Sihanoukville and Bavet. The indicted included Dong Lecheng, Xu Aimin, Chen AI Len, and Su Liansheng. The business entities linked to the individuals include TC Capital, KB Hotel, KBX Investment, Heng He Bavet, MDS Heng He, and HH Bank.

OFAC revealed that Chinese investors initially built most facilities as Casinos, but later became hubs for cryptocurrency investment scams often done by trafficked victims. Victims at the Sihanoukville and Sun Sky Casino were beaten and forced to conduct online scams and launder through the casinos. In Bavet, Chen AI Len and Su Liangsheng were linked to the Heng He Casino and other properties used for similar schemes.   

The latest sanction follows the May action against cyber scams in the region targeting the Karen National Army as a transnational criminal organization, along with its leaders and family members. Cryptopolitan reported that the sanctions were issued under Executive Orders 13581 and 14014. They block all U.S.-linked assets of the KNA and its leaders and prohibit all Americans from conducting business-related transactions. Huione Group was identified as the financial platform laundering the scam proceeds. As a result, all properties and interests tied to persons that fall under U.S. jurisdiction are blocked. 

The Treasury Department stated that the sanctions were issued under multiple authorities with executive orders targeting transnational criminal organizations, malicious cyber-enabled activities, human rights abuse, and those threatening stability in Myanmar. 

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