U.S. Cracks Down on Scam Hubs Fueling Billions in Fraud and Forced Labor

The U.S. Treasury Department has imposed financial and diplomatic sanctions on 19 individuals and entities in Southeast Asia linked to large-scale cryptocurrency scams, marking a significant escalation in efforts to disrupt transnational cybercrime networks. The sanctions target entities in Myanmar’s Shwe Kokko and Cambodia, two locations identified as epicenters of the global cyberscam industry. The move follows U.S. government estimates that Americans lost at least $10 billion to scam operations in Southeast Asia in 2024, a 66% increase from the previous year [2].

Among the sanctioned parties are individuals and companies operating in Shwe Kokko, a city known for harboring criminal networks tied to the Karen National Army (KNA), which has been designated as a transnational criminal organization by the Treasury. Targets include Tin Win, Saw Min Min Oo, and Chit Linn Myaing Co., among others, who are accused of managing properties that host scam operations and providing logistical support to the criminal enterprises. The U.S. Treasury cited the Magnitsky Act to justify the sanctions, which bar the sanctioned individuals and entities from U.S. entry and banking dealings [2].

In Cambodia, the sanctions focus on four individuals and six organizations linked to the operation of scam compounds located in hotels, office buildings, and casinos. These entities are accused of facilitating cyber fraud that targets victims globally, including in the U.S., Europe, and China. Notable names include Dong Lecheng, Xu Aimin, Chen Al Len, and Su Liangsheng, alongside companies such as T C Capital Co., K B Hotel Co., and HH Bank Cambodia [2].

The U.S. government has emphasized the broader human rights implications of the scam industry, noting that many scammers themselves are victims of modern slavery. These workers are often lured with false job offers and held in forced labor under threats of violence or sexual abuse. While exact figures remain difficult to verify, the now-defunct U.S. aid agency estimated approximately 150,000 people trapped in scam compounds in Cambodia, while the Thai government has estimated 100,000 enslaved individuals in Myanmar [1].

The sanctions represent a coordinated effort to disrupt the financial infrastructure of these operations. Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley stated that the measures aim to prevent criminal networks from perpetuating "industrial-scale fraud, forced labor, and the theft of Americans’ hard-earned savings" [2]. The U.S. government has previously worked with regional authorities, including Thailand, to repatriate thousands of foreign victims from these scam centers. These actions reflect a broader strategy to address the growing threat of cyber-enabled financial crime in Southeast Asia, where criminal networks have increasingly exploited vulnerabilities in global financial systems [1].

Source:

[1] US sanctions companies and individuals behind Southeast ... (https://www.aljazeera.com/news/2025/9/8/us-sanctions-companies-and-individuals-behind-southeast-asian-scam-centers)

[2] Treasury Department targets Southeast Asia scam hubs ... (https://cyberscoop.com/southeast-asia-scam-hubs-sanctions/)