OFAC Sanctions Entities Tied to Crypto Scams in Myanmar and Cambodia

TLDR

• OFAC sanctioned 19 entities in Myanmar and Cambodia tied to crypto scams and forced labor.
• Americans lost over $10B to Southeast Asia-based scams in 2024, Treasury data shows.
• Scam compounds in Shwe Kokko and Sihanoukville were key targets of new US sanctions.
• UN reports estimate 220,000 people forced into scam operations across Myanmar and Cambodia.

The United States has sanctioned 19 entities and individuals linked to large-scale crypto investment scams in Myanmar and Cambodia. The Treasury Department’s Office of Foreign Assets Control (OFAC) announced that these networks used forced labor, coercion, and violence to operate fraudulent investment platforms targeting victims worldwide.

Sanctions on Scam Operations in Myanmar

OFAC named nine targets operating in Shwe Kokko, a town in Myanmar’s Karen State that has become a center for scam activity. The region has been associated with organized crime groups running fraudulent crypto platforms.

According to OFAC, She Zhijiang, a businessman linked to the Yatai New City project, played a key role in building scam compounds in Shwe Kokko. The agency also identified Tin Win and Saw Min Min Oo from the Karen National Army (KNA), who allegedly provided security and managed entities supporting scam operations. Six companies connected to these activities were also included in the sanctions.

The Treasury Department had previously sanctioned the KNA and its leader Col. Saw Chit Thu for their involvement in human trafficking and cyber scams. Officials stated that these networks use deceptive job offers, debt bondage, and threats of violence to compel people into carrying out online fraud.

Networks Exposed in Cambodia

Ten individuals and companies tied to scam compounds in Cambodia were also sanctioned. OFAC named Dong Lecheng and Xu Aimin for turning hotels, office buildings, and casinos in Sihanoukville into scam hubs. Two others, Chen Al Len and Su Liangsheng, were linked to operations in Bavet, near the Vietnamese border.

Su Liangsheng was also identified as a board member of M D S Heng He Investment Co. Ltd., a company that developed a large scam compound in Pursat province. The firm is chaired by Cambodian businessman Try Pheap, who was previously sanctioned in 2019 for corruption. Researchers have said that parts of Cambodia’s political and business elite have enabled the growth of scam operations.

Amnesty International reported in June that Cambodia’s government failed to act against cybercrime networks. The group stated that many victims were held against their will and forced to conduct online scams. The Cambodian government has denied these allegations.

Growing Concern Over Southeast Asia Scam Industry

U.S. officials said that Americans lost more than $10 billion to scams from Southeast Asia in 2024, marking a sharp rise from previous years. Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley described the industry as a dual threat to financial security and human rights.

“These criminal groups not only steal billions from Americans but also subject thousands to forced labor and abuse,” Hurley said.

Secretary of State Marco Rubio added that the sanctions aim to disrupt fraud operations and protect Americans from exploitation. He said that the networks relied on forced labor, threats, and violence to continue their operations.

Reports from the United Nations suggest that over 120,000 people in Myanmar and 100,000 in Cambodia may be held in scam compounds. Many are lured with false job promises and then prevented from leaving through intimidation and physical abuse.

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