US Sanctions For Billion Dollar Cyber Fraud Networks In Myanmar And Cambodia

The United States (US) imposed sanctions on 19 entities, including companies and individuals, in Myanmar and Cambodia involved in large-scale cyber fraud operations. This sanction was announced by the US Treasury Department on September 8, 2025, targeting criminal networks suspected of stealing more than $10 billion from US citizens by 2024 alone, through fraudulent investment fraud, money laundering, and illegal gambling.

According to an official statement from the US Treasury Department, the cyber fraud industry in Southeast Asia has grown rapidly, especially since the military coup in Myanmar in 2021. The criminal network is recruiting victims forcibly from various countries, including with offers of fake jobs, then forcing them to work in "fraud complexes" that resemble prisons.

The victims, which amounted to hundreds of thousands of people, were forced to commit online fraud such as "pig butchering" (fragitive crypto investment fraud) and often experienced physical violence, debt slavery, and threats of forced prostitution.

"The Southeast Asian cyber fraud industry not only threatens the welfare and financial security of American citizens, but also makes thousands of people subject to modern slavery," said Deputy US Finance Minister for Terrorism and Financial Intelligence, John K.

This sanction aims to cut off the flow of funds to the network, which is developing in areas controlled by Myanmar's militias and military juntas.

Nine entities sanctioned were in Shwe Kokko, a city in Karen State near the Thai border, known as the main fraud center. Shwe Kokko was founded in 2017 by the previously sanctioned Yatai International Holding Group (a company from Hong Kong) and the Karen National Army (KNA), an armed group allied with the Myanmar military.

The fraud center in Myanmar has been spreading from militia areas to the junta area since 2021, according to an Australian Strategic Policy Institute report.

Ten other entities were sanctioned in Cambodia, where fraud centers run by China's criminal network focus on digital currency fraud. The main locations include Sihanoukville and Bavet, where complexes are disguised as casinos, hotels, and offices.

US sanctions prohibit financial transactions with these entities and freeze assets in the US. US Secretary of State Marco Rubio said these sanctions protect US citizens from "industrial-scale fraud, forced labor, physical and sexual harassment, and hard-working savings theft."

Spokesperson for the Myanmar junta and the Cambodian government have not responded. This is part of a broader US effort, including sanctions against the Huione Group in Cambodia in May 2025 for money laundering related to crypto fraud.

Experts estimate this sanction could reduce fraud activity by up to 15% in the region, although criminal networks may change locations. US citizens are encouraged to be wary of online investment scams, especially those that promise rapid profits in crypto.