US Sanctions on Myanmar Crypto Entities Targeting $10 Billion Scam Network

On September 8, 2025, the U.S. Treasury slapped sanctions on nine crypto-related entities operating in Shwe Kokko, Myanmar, and ten more in Cambodia - all tied to a vast network of forced-labor cyber scams that stole over $10 billion from Americans in 2024 alone. This wasn’t just another regulatory move. It was a full-scale takedown of a criminal empire built on digital fraud, human trafficking, and the anonymity of cryptocurrency.

How These Scams Work

These aren’t your average phishing emails or fake ICOs. The operations in Shwe Kokko are industrial-scale fraud factories. People - often lured by fake job postings for customer service or tech roles - are flown into compound-style facilities under false pretenses. Once there, they’re held against their will. Their passports are taken. They’re forced to work 16-hour days, calling thousands of Americans daily with convincing scripts about crypto investments, NFTs, or fake trading platforms.

The victims? Americans who think they’re investing in high-return crypto projects. The perpetrators? Often victims themselves - trafficked from Vietnam, China, India, and other parts of Southeast Asia. They’re beaten if they don’t meet quotas. Some are drugged. Others are held in cages. Meanwhile, the money flows into cryptocurrency wallets, layered through mixers and decentralized exchanges to hide its trail.

The U.S. Treasury calls it modern slavery. And they’re right.

The Karen National Army’s Role

The whole operation runs under the protection of the Karen National Army (KNA), a militant group controlling the Shwe Kokko region along the Thai-Burma border. The KNA isn’t just turning a blind eye - they’re profiting. They collect taxes from the scam compounds, provide armed guards, and block law enforcement from entering. Their leader, Saw Chit Thu, and his two sons, Saw Htoo Eh Moo and Saw Chit Chit, were directly named in the sanctions.

The KNA’s connection to Myanmar’s military junta is no secret. The junta, which seized power in 2021, has long tolerated - and sometimes partnered with - criminal networks in exchange for cash and weapons. This isn’t chaos. It’s a business model. The KNA gets funding. The junta gets leverage. The scammers get immunity. And Americans lose billions.

Why Crypto? Why Now?

Cryptocurrency is the perfect tool for this kind of crime. It’s fast. It’s borderless. It’s hard to trace - especially when funds are moved through multiple wallets, decentralized exchanges like Uniswap, and privacy coins like Monero. Scammers use fake DeFi platforms, fake NFT marketplaces, and even rigged crypto ATMs to make their schemes look real.

In 2024, Americans lost $10 billion to these scams - according to the Treasury’s own estimate. That’s more than the entire annual GDP of some small countries. Chainalysis reported that about 20% of all global crypto fraud in 2024 came from Southeast Asian operations. Shwe Kokko alone accounted for nearly half of that.

The U.S. didn’t wait for more victims. The sanctions were aggressive, coordinated, and targeted. They didn’t just freeze bank accounts. They froze everything - digital wallets, domain names, server infrastructure, even the physical buildings where the scams ran.

The Legal Weapons Used

This wasn’t done with one law. The Treasury used four separate executive orders at once:

• E.O. 13851 - Targets transnational criminal organizations
• E.O. 13694 - Addresses cyber-enabled financial crimes
• E.O. 13818 - Sanctions human rights abusers
• E.O. 14014 - Punishes those threatening Burma’s stability

This multi-layered approach means U.S. persons can’t interact with any of the sanctioned entities - not even indirectly. If you’re a U.S. citizen and you send Bitcoin to a wallet linked to one of these scams, even unknowingly, you could be breaking federal law.

The Treasury also froze assets held in U.S. financial institutions. That includes crypto exchanges registered in the U.S. that may have processed transactions for these groups. It’s a message: if you’re in the U.S., you don’t help these operations - even by accident.

Who Got Sanctioned?

The U.S. didn’t go after random wallets. They went after the entire structure:

• 9 entities in Shwe Kokko, Myanmar - All linked to KNA-controlled scam compounds
• 10 entities in Cambodia - Financial hubs that laundered crypto from Myanmar
• Saw Chit Thu - KNA leader
• Saw Htoo Eh Moo and Saw Chit Chit - His sons, directly managing operations
• Multiple crypto wallet addresses - Publicly listed by OFAC for tracking
• Three domain names - Used for fake crypto trading platforms

These aren’t anonymous addresses. The Treasury has mapped out the full chain - from the compound where victims are held, to the wallet that receives the money, to the exchange that converts it into cash.

What This Means for Crypto Users

If you’re a regular crypto user, you’re not at risk - unless you’re using unregulated platforms or sending funds to unknown wallets. But here’s the catch: some of these scam wallets look legitimate. They have whitepaper websites, fake audit reports, and even YouTube influencers promoting them.

The Treasury released a public list of all sanctioned wallet addresses. Exchanges like Coinbase and Kraken have already blocked transactions to them. But smaller DeFi platforms and peer-to-peer apps? Not all of them are compliant.

Bottom line: If you’re sending crypto to a wallet you found on a Telegram group, a Reddit post, or a “guaranteed ROI” ad - stop. Verify. Check the OFAC list. Use tools like Etherscan or Blockchain.com to trace the address history. If it’s ever been flagged, walk away.

What Happens Next?

This is just the beginning. The Treasury said this action “builds on a series of steps taken in the last several months.” That means more are coming. The next targets? Likely Myanmar military officials who profit from these operations. And possibly foreign banks or exchanges that knowingly processed their funds.

The U.S. is also working with Thailand, Cambodia, and India to shut down the physical compounds. Joint raids are expected in early 2026. The goal isn’t just to freeze money - it’s to free the people trapped inside.

Meanwhile, the $10 billion loss figure isn’t just a number. It’s 100,000 families who lost their life savings. It’s retirees who cashed out their 401(k)s. It’s students who borrowed money to “invest.” And now, the U.S. government is finally treating it like the emergency it is.

How to Protect Yourself

Here’s what you can do right now:

1. Never invest based on a DM or cold call. Legit crypto projects don’t recruit on Telegram.
2. Check wallet addresses before sending funds. Use OFAC’s SDN List (searchable via third-party tools like Blockchair or Etherscan).
3. Avoid unknown DeFi platforms with no audit history or team transparency.
4. Report suspicious activity to the FBI’s IC3 portal - even if you didn’t lose money.
5. Use regulated exchanges - they’re required to screen for sanctioned addresses.

If you’ve already sent money to a scam, don’t panic. Contact the FBI’s Internet Crime Complaint Center immediately. Sometimes, funds can be recovered if traced early - especially if the wallet is still connected to a sanctioned entity.

Final Thoughts

This isn’t just about money. It’s about people - the ones trapped in compounds, forced to lie to strangers every day. And the ones back home, who lost their savings because they trusted a stranger on the internet.

The U.S. government has finally stopped treating this like a tech problem. It’s a humanitarian crisis wrapped in blockchain code. And now, they’re using every tool they have to break it apart.

If you’re in crypto, pay attention. The rules are changing. The stakes are higher. And the next scam might be one click away.