U.S. Government Sanctions Myanmar Warlord for Cyber Fraud
In a decisive move to combat cyber fraud, the United States government has sanctioned a notorious warlord from Myanmar and his affiliated militia, which have orchestrated significant cyber scams, including those related to cryptocurrencies, impacting American citizens. The Director of the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) announced these restrictions against Saw Chit Thu, who leads the Karen National Army (KNA).
Targeted Individuals and Criminal Activities
The sanctions extend not only to Saw Chit Thu but also include his two sons, Saw Htoo Eh Moo and Saw Chit Chit, alongside their militia. The Treasury Department has implicated them in serious crimes beyond just online scams, pointing to human trafficking and cross-border smuggling efforts as part of their illicit activities. According to U.S. authorities, the KNA has been linked to various transnational crimes, particularly fraud schemes related to cryptocurrency.
Alarmingly, victims in the U.S. suffered losses exceeding $2 billion in 2022, with that figure climbing to over $3.5 billion in 2023 due to fraudulent activities originating from Southeast Asia.
Money Laundering and Financial Institutions
On May 1, 2025, the Financial Crimes Enforcement Network identified the Huione Group, a Cambodian financial institution, as a significant entity involved in money laundering operations across the region. This institution is under scrutiny for facilitating money laundering, particularly benefiting North Korean entities and other criminal organizations, further complicating the fight against cybercrime.
Scam Operations and Economic Impact
The KNA’s operations are characterized by scams often disguised as enticing investment opportunities in virtual currencies. These scams, sometimes referred to as “pig butchering,” lure victims by showcasing a luxurious lifestyle, pressuring individuals to invest in fake cryptocurrency platforms, and ultimately disappearing with their funds.
International Efforts and Accountability
In addition, OFAC has highlighted that Saw Chit Thu plays a pivotal role in Myanmar’s burgeoning scam economy, leveraging his connections to the country’s military regime to bolster his criminal enterprises, especially in regions under KNA influence along the Myanmar-Thailand border. Saw Chit Thu was previously sanctioned by the United Kingdom in 2023 and by the European Union in 2024, underscoring a broad international effort to hold him accountable and dismantle the networks that fund these fraudulent schemes.
