American cyber scam victims have lost over $3.5 billion to Myanmar warlord Saw Chit Thu’s criminal empire, prompting severe U.S. sanctions against his militia-backed cryptocurrency fraud operations.
Key Takeaways
- The U.S. Treasury Department has blacklisted Myanmar warlord Saw Chit Thu, his two sons, and the Karen National Army (KNA) for operating massive cyber scam networks
- American victims have lost over $2 billion in 2022 and $3.5 billion in 2023 through cryptocurrency fraud and romance scams originating from Myanmar
- The KNA has been designated as a “significant transnational criminal organization” involved in human trafficking, smuggling, and providing security for scam operations
- Scam centers are operated from the Myanmar-Thailand border region, where victims are often trafficked and forced to work under threats of violence
- The United Kingdom and European Union have also sanctioned Saw Chit Thu, who maintains close ties with Myanmar’s military junta
Myanmar’s Criminal Cyber Empire
The U.S. government has delivered a significant blow to one of Southeast Asia’s most notorious cyber-criminal operations by imposing harsh sanctions on Saw Chit Thu, a powerful Myanmar warlord, and his militia group, the Karen National Army. The Treasury Department’s action designates the KNA as a “significant transnational criminal organization” and effectively bars them from holding property in the United States or conducting any transactions with U.S. persons. This decisive move comes as American victims continue to lose billions to sophisticated scam operations run from the Myanmar-Thailand border region, where Saw Chit Thu’s influence reigns supreme.
“Treasury is committed to using all available tools to disrupt these networks and hold accountable those who seek to profit from these criminal schemes,” said Treasury Deputy Secretary Michael Faulkender.
The sanctions specifically target Saw Chit Thu, his two sons, and the broader criminal enterprise they’ve established in Shwe Kokko, located in Myanmar’s Myawaddy township. Since 2017, this area has undergone massive construction as part of a joint venture involving She Zhijiang, a naturalized Cambodian citizen with extensive connections to gaming operations throughout Southeast Asia. The KNA’s headquarters serve as the command center for a sophisticated network of scam operations that has ensnared victims worldwide, with Americans suffering particularly devastating financial losses.
Billions Lost Through “Pig Butchering” and Investment Scams
The criminal operations run by Saw Chit Thu and the KNA have perfected a variety of cyber scams that have proven devastatingly effective against American victims. Treasury Department data reveals that U.S. citizens lost over $2 billion to these scams in 2022 alone, with that figure climbing to a staggering $3.5 billion by 2023. The most common schemes include cryptocurrency investment frauds and romance scams known as “pig butchering” – a particularly cruel tactic where victims are emotionally manipulated before being fleeced of their savings.
These scams follow a predictable pattern: victims are lured with promises of remarkable investment returns, encouraged to invest increasingly larger sums of money, only to have the scammers disappear with all funds once they’ve extracted maximum value. The KNA profits from these operations through multiple revenue streams – leasing land to organized crime groups, providing security services, facilitating human trafficking across borders, and maintaining essential utilities necessary for the scam centers to operate effectively. Their business model demonstrates a sophisticated criminal enterprise with deep connections throughout the region.
Human Trafficking and Forced Labor Fuel Scam Operations
Perhaps the most disturbing aspect of these cyber scam operations is the human suffering that enables them. Investigations have revealed that many of the scammers working in these facilities are themselves victims of trafficking. Workers are often lured with false promises of legitimate employment before being trafficked into call centers or retrofitted hotels and casinos. Once trapped in these facilities, they are forced to perpetrate scams against strangers online under constant threats of violence, creating a horrific cycle of victimization that spans continents.
The Treasury’s Financial Crimes Enforcement Network has identified key financial institutions facilitating these operations, including the Cambodian Huione Group, which has been implicated in money laundering activities for various criminal organizations and potentially even North Korea. This financial infrastructure allows the scam proceeds to be laundered and converted, making the operations highly profitable for Saw Chit Thu and his associates while complicating efforts to track and recover victims’ funds.
International Response and Strategic Implications
The U.S. sanctions represent a broader international effort to combat these criminal networks. The United Kingdom sanctioned Saw Chit Thu in 2023, followed by similar actions from the European Union in early 2024. What makes Saw Chit Thu particularly concerning to international authorities is his close relationship with Myanmar’s military junta, which has allowed his operations to flourish with implicit state protection. This connection between organized crime and the military regime highlights the complex challenges in addressing cybercrime networks that operate with varying degrees of state support.
The sanctions are an important step in disrupting these criminal enterprises, but the scale of the operations and their continued expansion throughout Southeast Asia suggest that more comprehensive international cooperation will be necessary to address the threat fully. For American consumers, the Treasury’s actions serve as a stark reminder of the sophisticated criminal networks targeting their financial assets and the importance of maintaining vigilance against increasingly convincing online scams.
