U.S. sanctions cyber scammers who stole billions from Americans

The U.S. Department of the Treasury has sanctioned several large networks of cyber scam operations in Southeast Asia, which stole over $10 billion from Americans last year.

These operations, mainly those in Burma and Cambodia, are notorious for using forced labor, human trafficking, and physical violence, essentially operating as modern slavery farms that conduct online fraud.

The scams vary from “romance baiting” to fake cryptocurrency investing opportunities.

The announcement highlights that the financial damage impact of these South Asian scam centers on Americans in 2024 recorded a 66% increase compared to the previous year.

Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned the following nine targets, linked to the Karen National Army (KNA) in Bruma, and 10 targets linked to various organized crime networks in Cambodia:

1. Tin Win – Controls property that hosts scam centers and runs an energy company supplying power to scam sites
2. Saw Min Min Oo – KNA official managing KNA-affiliated companies involved in scam operations
3. Chit Linn Myaing Co., Ltd (CLM Co.) – KNA’s holding company; partner in Myanmar Yatai; supports scam operations
4. Chit Linn Myaing Toyota Company Limited – KNA-affiliated company linked to scam center operations.
5. Chit Linn Myaing Mining & Industry Company Limited – KNA-affiliated company involved in scam-related activity
6. Shwe Myint Thaung Yinn Industry & Manufacturing Company Limited – Contracts with energy suppliers to power scam operations in Shwe Kokko
7. She Zhijiang – Mastermind of Yatai New City, arrested in Thailand for human rights abuses
8. Yatai International Holdings Group Limited (Yatai IHG) – She Zhijiang’s main corporate vehicle, owns the majority of Myanmar Yatai
9. Myanmar Yatai International Holding Group Co., Ltd – Joint venture between Yatai IHG and CLM Co., owns/operates Yatai New City scam compound
10. T C Capital Co. Ltd. – Owns Golden Sun Sky Casino and Hotel and a site for virtual currency scams and money laundering
11. Dong Lecheng – Founder of T C Capital, convicted of money laundering in China
12. K B Hotel Co. Ltd. – Owns scam compound with office blocks, hotel, and casino using enslaved labor
13. Xu Aimin – Co-founder of K B Hotel, convicted in China for illegal online gambling, and also linked to money laundering
14. K B X Investment Co. Ltd. – Cambodian real estate company owned by Xu Aimin
15. Chen Al Len – Director of Heng He Bavet and board member of K B Hotel
16. Su Liangsheng – Co-director of Heng He Bavet and board member of M D S Heng He
17. Heng He Bavet Property Co. Ltd. – Owns Heng He Casino and is involved in virtual currency scams and forced labor
18. M D S Heng He Investment Co. Ltd. – Developer of scam compound in Pursat Province
19. HH Bank Cambodia plc – Financial institution majority-owned by Chen and Su; supports scam activities

The imposed sanctions were based on violations relating to Executive Orders 13851 on transnational crime, 13694 on cyber-enabled threats,  13818 on human rights abuses, and 14014 on destabilizing actors in Burma.

In practice, the sanctioned entities are blocked from the U.S. financial system and are banned from doing business or having any financial transactions with Americans. Also, any property they hold in the U.S. is frozen, and their access to international banks, partners, and platforms is severely limited.

Although no arrests have been made, that would have a direct impact on the fraudulent operations, the sanctions still bring notable legal exposure and financial isolation to these threat actors.