Treasury Cracks Down on Scam Lords Enslaving 250,000 in Southeast Asia

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on 19 individuals and entities in Myanmar and Cambodia for their involvement in a multibillion-dollar cyber scam industry, which exploits human trafficking victims and defrauds Americans of over $10 billion in 2024—a 66% increase from the previous year [1]. These operations are often run from “scam compounds” located in Myanmar’s Shwe Kokko and Cambodia’s Sihanoukville, where trafficked individuals are coerced into scamming others online under threats of violence and debt bondage [2].

The Treasury highlighted that these scams typically involve a tactic known as “pig-butchering,” where scammers build trust with victims through fabricated romantic or investment opportunities before stealing their funds via fraudulent cryptocurrency platforms [1]. In Myanmar, the sanctions target figures such as Tin Win, Saw Min Min Oo, and Chit Linn Myaing Co., who are accused of operating under the Karen National Army (KNA), a group designated as a transnational criminal organization by OFAC in May 2025 [2]. The KNA, led by Saw Chit Thu and his sons, has transformed Shwe Kokko into a hub for cybercrime, drug trafficking, and forced labor [3].

In Cambodia, the Treasury sanctioned Dong Lecheng, Xu Aimin, Chen Al Len, and Su Liangsheng, along with six associated companies, for their roles in converting hotels, office buildings, and casinos into scam centers [1]. These individuals are linked to operations that lure workers under false employment offers and force them into scamming roles, often under the threat of physical abuse or forced prostitution. The sanctioned entities include T C Capital Co., K B Hotel Co., and HH Bank Cambodia, which have been complicit in laundering funds from scam activities [2].

The U.S. government estimates that around 150,000 individuals are trapped in scam compounds in Cambodia and 100,000 in Myanmar, often under conditions of modern slavery [1]. The Treasury’s action is part of a broader effort to dismantle the financial infrastructure supporting these operations, using tools such as Executive Order 13694, which targets cyber-enabled activities, and Executive Order 13818, which addresses human rights abuses [2]. The sanctions also bar the designated individuals and entities from entering the U.S. and conducting financial transactions with American institutions, in line with the Global Magnitsky Human Rights Accountability Act [2].

This round of sanctions builds on earlier Treasury actions, including the designation of Funnull for selling internet addresses to cybercriminals and the targeting of Huione Group for laundering proceeds from cyber heists [2]. The move underscores the U.S. government's commitment to addressing not just the financial impact of these scams, but also the severe human rights violations associated with them. As of May 2025, the Treasury has sanctioned over 30 individuals and entities across Southeast Asia for their roles in cyberfraud and human trafficking [2].

Source:

[1] US sanctions companies and individuals behind Southeast Asian scam centers (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/)

[3] Treasury Sanctions Southeast Asian Networks Targeting Americans (https://home.treasury.gov/news/press-releases/sb0237)