The U.S. Treasury Department recently sanctioned the Karen National Army (KNA) and its leader, Saw Chit Thu, for their involvement in cyber fraud. The KNA controls security in Shwe Kokko, a region housing large-scale scamming operations. These operations exploit workers who are deceived into participating in fraudulent activities, often related to cryptocurrency investments. The FBI reported significant losses, with Americans losing over $6.5 billion to cryptocurrency-related fraud last year.
The KNA reportedly profits from the scam industry by leasing land to organized crime groups and supporting human trafficking. The Treasury’s allegations suggest the KNA provides security for the compounds, facilitating criminal activities. Despite international efforts to crack down on the industry, such as actions by Thailand and China, the scam trade continues to thrive in Myanmar and nearby regions.
The KNA’s involvement has been part of a broader criminal enterprise operating on an industrial scale.
Saw Chit Thu, a long-time figure in Myanmar’s border regions, has faced sanctions from the UK and the EU for his ties to cybercrime. His relationship with the Myanmar military junta has also drawn international scrutiny. The Treasury’s new sanctions block him and his sons, Htoo Eh Moo and Saw Chit Chit, from engaging in business in the U.S. and prevent American citizens from conducting financial transactions with them.
This is part of broader efforts to restrict the influence of criminal groups linked to cyber fraud.
These sanctions come shortly after the U.S. Treasury targeted the Cambodia-based Huione Group for money laundering. This company allegedly helped launder funds from North Korean cybercrimes and Southeast Asian scams. The United Nations has also raised concerns about the expansion of scamming operations, with criminal networks increasingly shifting their focus to regions like Africa and South America. The actions reflect growing international concerns over the global reach of cybercrime and money laundering.
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