Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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The U.S. Treasury Department sanctioned 19 entities across Myanmar and Cambodia for operating massive crypto scam networks that defrauded Americans of over $10 billion in 2024 alone.
The coordinated action targets transnational criminal organizations using forced labor and human trafficking to perpetrate “pig butchering” scams.
The Office of Foreign Assets Control designated nine targets in Shwe Kokko, Myanmar, operating under the protection of the previously sanctioned Karen National Army, plus ten entities based in Cambodia.
The scam centers recruit individuals under false pretenses before using debt bondage, violence, and forced prostitution threats to coerce victims into targeting American citizens.
Network of Forced Labor and Violence
According to the Treasury, these criminal organizations specifically recruit English-speaking individuals to target Americans through messaging apps and text messages.
Former scammers reported daily quotas for victim targeting while being held captive until families paid ransoms for their release.
The schemes involve building fake romantic relationships or friendships to gain the victim’s trust before convincing the targets to invest in fraudulent crypto platforms.
Scammers operate websites designed to mimic legitimate investment platforms while actually controlling victim funds directly.
Treasury’s action builds on previous designations, including May sanctions against the Karen National Army and its leaders for facilitating cyber scams and human trafficking.
FinCEN also identified Huione Group as a primary money laundering concern for processing proceeds from North Korean cyber heists and Southeast Asian digital asset scams.
The crackdown escalates under the Trump administration’s broader campaign against organized financial crime.
Under Secretary John K. Hurley emphasized that “Southeast Asia’s cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern slavery.”
Myanmar’s Yatai New City Criminal Enterprise
The sanctions target Yatai New City, a prominent scam compound in Shwe Kokko created by She Zhijiang and Saw Chit Thu.
The compound transformed a small village into a resort city custom-built for gambling, drug trafficking, prostitution, and international scams over eight years.
She Zhijiang operates under multiple pseudonyms after adopting Burmese and Cambodian citizenship.
China issued an Interpol Red Notice, leading to his 2022 arrest in Thailand, with ongoing extradition proceedings since the detention.
Myanmar Yatai International Holding Group serves as the joint venture between CLM Co., the KNA’s holding company, and She Zhijiang’s Yatai International Holdings Group.
The partnership owns and operates Yatai New City with 70% ownership by Yatai IHG and 30% by CLM Co.
Tin Win controls Shwe Myint Thaung Yinn Industry & Manufacturing Company, which contracts with energy suppliers to maintain power for scam operations.
Thailand shut off electricity to Yatai New City in 2023 and 2025, attempting to close the centers.
Saw Min Min Oo, a former KNA Colonel, manages various affiliated companies while serving on boards of multiple entities, including Chit Linn Mying Co., Toyota operations, and mining companies.
The complex organizational structure obscures true ownership while facilitating criminal operations.
Escaped victims reported being beaten for failing quotas and forced into commercial sex work.
The compound detains workers until ransom payments while maintaining the facade of legitimate business operations through corporate structures.
Cambodia’s Casino-to-Scam Conversion Networks
Treasury targeted Cambodian entities that converted Chinese-built casinos into virtual currency scam centers when fraud proved more profitable than gambling.
For instance, T C Capital owns the Golden Sun Sky Casino complex in Sihanoukville, using casino functions to launder criminal proceeds.
Dong Lecheng founded T C Capital after a money laundering conviction in China and investigations for bribery and illegal online gambling.
The investor developed multiple Sihanoukville properties linked to modern slavery and crypto fraud operations.
K B Hotel Co. operates another Sihanoukville complex where enslaved workers conduct virtual currency scams.
Co-founder Xu Aimin received a 10-year Chinese prison sentence for operating billion-dollar illegal gambling rings before moving to Cambodia and obtaining citizenship.
Chen Al Len serves on K B Hotel’s board while directing Heng He Bavet Property, which owns casinos and buildings in Bavet. The company received workers previously linked to cyber scams from Sihanoukville operations.
The interconnected ownership structures span multiple provinces while maintaining plausible deniability through legitimate business facades.
The Treasury action freezes all U.S.-based property and prohibits American persons from conducting transactions with designated entities.
