"Treasury Strikes at Cyber Scam Empire Built on Human Trafficking and Debt Bondage"

The U.S. Treasury has imposed sanctions on 19 entities and individuals across Myanmar and Cambodia for their roles in orchestrating a global cyber scam operation that relies on the forced labor of human trafficking victims. This action, taken by the Office of Foreign Assets Control (OFAC), marks the latest escalation in efforts to disrupt the transnational cyber scam industry in Southeast Asia, which has siphoned billions from victims worldwide, including over $10 billion from Americans in 2024—a 66% increase from the previous year [1].

Nine entities in Shwe Kokko, Myanmar, a notorious hub for virtual currency investment scams, were targeted. These include Tin Win, Saw Min Min Oo, and Chit Linn Myaing Co., all of whom are linked to the Karen National Army (KNA), a group previously designated as a transnational criminal organization. She Zhijiang, the mastermind behind the Yatai New City compound in Shwe Kokko, was also sanctioned for his role in creating an environment conducive to cybercrime, alongside multiple affiliated companies [2]. The Magnitsky Act provisions now bar these individuals and their associated entities from engaging in financial transactions with U.S. institutions and restrict their travel to the United States [3].

The sanctions also extend to 10 targets in Cambodia, including Dong Lecheng, Xu Aimin, and Su Liangsheng, along with six companies they control. These entities are accused of converting commercial properties—such as hotels, office buildings, and casinos—into scam centers. These operations are characterized by the use of false job offers, debt bondage, and physical violence to coerce victims into participating in fraudulent schemes. The "pig-butchering" scam, a prevalent tactic in the region, involves scammers cultivating fake romantic relationships with victims before luring them into investing in non-existent cryptocurrency platforms [1].

The U.S. Treasury has emphasized the human cost of these operations, noting that thousands of individuals are subjected to modern slavery-like conditions in scam centers. Victims, often lured with the promise of legitimate employment, are held against their will through coercion and threats of forced prostitution. While precise numbers remain elusive, estimates suggest as many as 150,000 people are trapped in scam compounds in Cambodia, with similar conditions reported in Myanmar [2].

The action is part of a broader U.S. strategy to dismantle cybercrime networks in Southeast Asia, which have become a focal point for organized crime linked to Chinese syndicates. The Treasury’s actions follow prior efforts, such as the 2024 designation of Cambodia’s Huione Group as a major money laundering concern for facilitating proceeds from North Korean cyberattacks and Southeast Asian scams [3]. These measures are intended to disrupt the financial infrastructure of these operations, limiting their ability to perpetuate large-scale fraud and exploitation [1].

Southeast Asia has increasingly emerged as a cybercriminal epicenter, with countries like Myanmar and Cambodia serving as key nodes in a global network that exploits digital vulnerabilities. The U.S. government’s intervention underscores its recognition of the cross-border nature of the threat, which not only jeopardizes financial security but also violates fundamental human rights. As international pressure mounts, the effectiveness of these sanctions will depend on the cooperation of regional governments and the continued disruption of scam networks.

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] OFAC sanctions entities tied to crypto scams in Myanmar (https://www.theblock.co/post/369965/us-sanctions-crypto-scam-network)