Myanmar warlord and his criminal militia have swindled Americans out of $5.5 billion through elaborate cryptocurrency scams, prompting decisive U.S. sanctions against these transnational criminals.
Key Takeaways
- The U.S. Treasury Department has blacklisted Myanmar militia leader Saw Chit Thu, his two sons, and the Karen National Army for operating massive cyber scam operations targeting Americans
- Americans have lost over $2 billion in 2022 and $3.5 billion in 2023 to these criminal enterprises specializing in cryptocurrency fraud and “pig butchering” romance scams
- The KNA operates from a self-governing border region near Thailand, where they lease land to crime syndicates and provide security for human trafficking and forced labor operations
- Following U.S. action, both the United Kingdom and the European Union have also sanctioned Saw Chit Thu and his criminal network
Massive Criminal Enterprise Targeting American Wallets
The U.S. Treasury Department has taken decisive action against one of Southeast Asia’s most notorious criminal organizations, designating Myanmar warlord Saw Chit Thu, his two sons, and his militia group, the Karen National Army (KNA), as a “significant transnational criminal organization.” This designation blocks the group from conducting business with American entities and freezes any U.S.-based assets. The sanctions come after investigators uncovered the KNA’s central role in extensive cybercriminal operations that have systematically targeted Americans through sophisticated scams involving cryptocurrency and romance schemes.
The financial impact on American victims has been staggering. Treasury officials report that these cybercriminal operations cost Americans more than $2 billion in 2022 alone, with losses escalating to $3.5 billion in 2023. The KNA operates from Shwe Kokko in Myanmar’s Myawaddy township along the Thai-Myanmar border, where they’ve established a self-governing zone that functions as a haven for organized crime. Since 2017, the area has seen massive development through partnerships with foreign investors, creating the infrastructure necessary to house large-scale criminal operations.
“Treasury is committed to using all available tools to disrupt these networks and hold accountable those who seek to profit from these criminal schemes,” said Treasury Deputy Secretary Michael Faulkender.
Human Trafficking and Forced Labor Fueling Scam Operations
The KNA’s criminal enterprise extends far beyond simple cyber fraud. Investigators have uncovered a disturbing network of human trafficking operations supporting these scam centers. Victims are typically lured with promises of legitimate employment, only to be trafficked across borders and forced to work in call centers or converted hotels and casinos. Under constant threat of violence, these trafficked individuals are compelled to perpetrate scams targeting foreigners, particularly Americans, creating a human rights crisis alongside the financial crimes.
The KNA profits from these operations through multiple revenue streams. They lease land to organized crime groups, provide security services, facilitate human trafficking and smuggling operations across borders, and supply utilities needed for the scam centers to operate. Saw Chit Thu, who leads the militia, has been identified as a key enabler of these criminal enterprises, with his sons serving in prominent roles within the organization. The militia’s connection to Myanmar’s ruling military junta has provided additional protection for their operations.
The Treasury Department has also identified the Cambodian financial institution Huione Group as a primary money laundering vehicle for these criminal enterprises. The group allegedly processes illicit funds not only for the KNA but also for North Korean interests and other criminal organizations throughout Southeast Asia, creating a complex financial network that has allowed these scam operations to flourish for years while evading detection.
“Pig Butchering” and Investment Scams
The criminal networks operating under KNA protection specialize in sophisticated schemes targeting Americans through what has become known as “pig butchering” scams. These elaborate operations begin with scammers establishing relationships with victims, often through dating apps or social media, and building trust over time. Once trust is established, victims are gradually persuaded to invest in seemingly legitimate cryptocurrency ventures that promise exceptional returns, with initial small investments appearing to generate profits.
Encouraged by these early “successes,” victims are manipulated into investing increasingly large sums of money, often their life savings or retirement funds. When victims try to withdraw their supposed earnings or investment capital, they discover the entire operation was fraudulent, with scammers disappearing with all funds. The name “pig butchering” refers to the practice of “fattening up” victims before financially “slaughtering” them, a cruel but apt description of how these criminals methodically build trust before stealing everything.
International Response to Growing Threat
The U.S. sanctions are part of a growing international effort to combat these transnational criminal organizations. Both the United Kingdom and the European Union sanctioned Saw Chit Thu in 2023 and 2024, respectively, recognizing the global threat posed by these criminal enterprises. The coordinated international response reflects growing concern over the scale of these operations, which have expanded dramatically in recent years as cryptocurrency adoption has increased worldwide.
Financial intelligence units have identified a concerning trend of these criminal organizations becoming increasingly sophisticated in their operations. What began as rudimentary scams has evolved into elaborate criminal enterprises with specialized roles, professional marketing, and complex money laundering operations. As authorities intensify efforts to combat these groups, American consumers are urged to exercise extreme caution with unsolicited investment opportunities, particularly those involving cryptocurrency or originating from romantic relationships established online.
