The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sweeping sanctions on cyber scam networks operating in Myanmar’s Shwe Kokko region, with additional locations in Cambodia, allegedly run by Chinese criminal networks, also targeted.
These sophisticated scams, which siphoned over $10 billion from Americans in 2024, exploit victims through fraudulent virtual currency investment schemes, often fuelled by forced labour and violence, explained the treasury. The sanctions target nine individuals and entities in Myanmar and several in Cambodia, with a particular emphasis on Myanmar’s role as a global hub for these illicit operations, aiming to disrupt their financial lifelines.
According to OFAC, in Myanmar, Shwe Kokko, located in Karen State, has become an epicentre for transnational criminal organisations orchestrating cyber scams. These groups entice victims with promises of high returns on cryptocurrency investments, only to defraud them through elaborate schemes. The operations rely on modern slavery, with thousands of workers coerced into perpetrating fraud under brutal conditions, including physical abuse and confinement.
OFAC has designated the Karen National Army (KNA) as providing protection for these scam centres, enabling their unchecked proliferation in a region marked by weak governance. Shwe Kokko’s lawless environment has solidified its status as a global hotspot for cybercrime, drawing intense scrutiny from US authorities.
According to OFAC, Cambodia also hosts significant scam operations, often mirroring Myanmar’s tactics with cryptocurrency fraud and human trafficking. Several companies were mentioned, particularly in Sihanoukville, Pursat and Bavet.
The operations in Cambodia reportedly often began as licensed casinos, but criminal networks, generally from China, then turn them into hubs for virtual currency investment scams “when that activity proved to be more profitable”.
OFAC said these schemes exploit victims through fake investment platforms, draining funds while subjecting workers to inhumane conditions. However, it noted that Myanmar’s Shwe Kokko stands out due to its scale and the KNA’s complicity, which amplifies the region’s role in global cybercrime.
The sanctions aim to dismantle these networks by freezing the assets of designated individuals and entities and barring US persons from engaging with them. This targets the leadership, ownership structures and operational infrastructure of the scam hubs, aiming to halt their ability to function and deter further exploitation, it explained.
“Southeast Asia’s cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern slavery,” said undersecretary of the treasury for Terrorism and Financial Intelligence John K. Hurley.
“In 2024, unsuspecting Americans lost over $10 billion due to Southeast Asia-based scams. Under President Trump and Secretary Bessent’s leadership, Treasury will deploy the full weight of its tools to combat organised financial crime and protect Americans from the extensive damage these scams can cause,” he added, as quoted in OFAC.
The sanctions are part of a broader 2025 strategy to curb cyber-enabled financial fraud and human trafficking in Southeast Asia. By targeting Myanmar’s Shwe Kokko and Cambodia’s scam networks, the treasury seeks to disrupt the financial and operational foundations of these criminal enterprises.
The Post was unable to obtain comment from Touch Sokhak, spokesperson for the Ministry of Interior.
Notably, Cambodia recently began taking strong action against scam operations. From June to August, 3,170 suspects of 19 nationalities were arrested. Of them, 66 were identified as leaders or managers and sent to court. As part of the same crackdown, 2,450 foreigners were deported.
According to a recent report from the anti-scam commission, over the past three years, Cambodia’s relentless efforts have yielded “impressive results”, with approximately 24,000 cases of online scams and related crimes suppressed.
“Through these, 23,990 foreign nationals were deported, and around 4,800 victims from 27 nationalities were rescued from trafficking and scam operations,” said a commission press release.
