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US Sanctions 19 Individuals and Companies Running Online Scam Operations in Myanmar and Cambodia

US Sanctions 19 Individuals and Companies Running Online Scam Operations in Myanmar and Cambodia

CryptonewslandCryptonewsland2025/09/09 15:09
By:by Austin Mwendia
  • The US sanctioned 19 people and groups for running online scams in Myanmar and Cambodia using trafficked labor.
  • Scam centers in Shwe Kokko and Cambodia used fake jobs to trap victims and force them into cyber fraud work.
  • The sanctions freeze US assets and block business links to stop fraud and human trafficking in Southeast Asia.

The United States has sanctioned 19 individuals and entities linked to scam operations in Myanmar and Cambodia. These groups are accused of running large-scale cyber fraud networks that exploit trafficked labor. The Treasury Department confirmed nine targets operate in Myanmar’s Shwe Kokko town, while ten are located in Cambodia.

U.S. Treasury has sanctioned 9 Myanmar entities and 10 Cambodian entities for forcing trafficking victims to run crypto investment scams. Officials said these groups used debt bondage, violence, and sexual exploitation to coerce victims into targeting strangers through messaging…

— Wu Blockchain (@WuBlockchain) September 9, 2025

Authorities say Shwe Kokko has become a key hub for scam activities. Criminal networks use this area to run operations backed by ethnic armed groups. These networks have converted the town into a center for fraudulent schemes, including investment scams and online fraud.

Involvement of Militia and Chinese Businessmen

Sanctions were issued against individuals tied to the Karen National Army (KNA), an ethnic armed group. The group reportedly protects scam compounds and profits from their operations. Sanctioned individuals include KNA leaders and affiliates operating companies in various industries.

A Chinese businessman, along with his firms, was also targeted. He helped build Yatai New City in Shwe Kokko. The site allegedly hosts gambling, drug trafficking, prostitution, and cyber scam operations. Victims were reportedly lured with fake job offers and then forced to work under brutal conditions. 

Similarly, in 2022, Sen. Risa Hontiveros revealed a purported human trafficking plan on Monday. This was allegedly carried out by a “Chinese mafia” that recruited Filipinos to work as “crypto scammers” in Myanmar.

Scam Compounds Disguised as Businesses in Cambodia

In Cambodia, four individuals and six entities faced sanctions for similar activities. These include casinos, hotels, and office complexes used as fronts for scam operations. Many of the facilities are based in Sihanoukville and Bavet.

Victims were reportedly trafficked into the country and forced to run cryptocurrency investment scams. Some facilities were used to hold and abuse victims, including forced labor and physical violence. Properties linked to these operations include well-known casinos and investment firms. In May, the U.S.Treasury banned Cambodia’s Huione Group from U.S. banking after over $4B laundering tied to North Korean-linked cybercrime.

Financial Blockades and International Measures

The sanctions were issued under multiple executive orders. These orders target transnational crime, cyber threats, and human rights violations. All U.S.-linked assets of the sanctioned individuals and companies are now frozen.

U.S. citizens are banned from doing business with them. The sanctions also target the flow of funds through financial platforms used by these scam networks. Officials aim to limit the ability of these operations to access international markets.

Authorities say these measures address both financial fraud and modern slavery. The scams have caused an estimated $10 billion in losses. Officials also reported a 66% rise in scam-related losses compared to the previous year.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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