WASHINGTON: The US sanctioned a militia in Myanmar linked to the ruling junta for supporting and profiting from cyber scams "on an industrial scale” that have cost Americans billions of dollars.
The US Treasury Department on Monday (May 5) said it sanctioned the Karen National Army, which operates in Myanmar’s southeast Kayin state bordering Thailand, as well as its leader, Saw Chit Thu (pic), and his two sons.
According to Treasury, the group leases land to organised crime groups and provides support for large-scale operations including security and electricity for "scam compounds,” as well as human trafficking and smuggling.
Cybercrime syndicates - multibillion-dollar crypto scam operations reliant on trafficked workers - have emerged in recent years in South-East Asia, particularly Myanmar, Cambodia and Laos.
The United Nations last month warned the groups are still expanding despite recent crackdowns, building links from Ireland to Mexico and scaling up in other parts of the world, particularly in the Pacific region, Africa, South America and South Asia.
"A significant portion of cyber scam operations targeting Americans and others around the globe emanate from South-East Asia,” the Treasury said in a statement Monday, adding that Americans lost about US$3.5 billion in 2023 to such scams.
Separately, on Monday the Treasury Department said it’s seeking to block Cambodia-based Huione Group from the US financial network because of money laundering concerns.
The Treasury’s Financial Crimes Enforcement Network accused the group of laundering money for North Korean cyber heists and crypto "pig butchering scams” by transnational criminal organisations in South-East Asia. - Bloomberg
