OFAC has imposed sanctions on nine entities in Myanmar and ten in Cambodia. These entities are involved in orchestrating fraudulent schemes using cryptocurrencies.
Today, Treasury’s Office of Foreign Assets Control implemented sanctions against networks of scam centers across Southeast Asia that steal billions of dollars from Americans using forced labor and violence. The action includes nine targets operating in Burma, a notorious hub for…
— Treasury Department (@USTreasury) September 8, 2025
“Scam centers in Southeast Asia are not only a threat to American citizens but also a form of modern slavery,” stated US Treasury representative John Hurley.
Last year, the damage from such schemes in the region exceeded $10 billion, marking a 66% increase compared to 2023.
Myanmar
The targeted organizations are located in the Shwe Kokko special zone in Myanmar, which has become one of the largest centers of digital crime globally.
The latest sanctions target individuals linked to the Karen National Army (KNA), an ethnic militia group that collaborated with the Burmese military. The sanctions affect the organization’s leader, his deputies, and companies associated with the criminal network.
OFAC also sanctioned Chinese businessman She Zhijiang and several of his firms. According to the agency, the entrepreneur and KNA leadership established a complex called Yatai New City, involved in gambling, drug trafficking, prostitution, and fraudulent operations.
Some victims reported being lured there with false job offers, held against their will, and forced to participate in illegal schemes under threat of physical harm.
Cambodia
In Cambodia, the sanctions affected four individuals and six organizations accused of running fraudulent complexes. These operated in the cities of Sihanoukville and Bavet.
OFAC representatives clarified that the structures were initially built by Chinese investors as casinos. However, they later transformed into centers for fraudulent schemes related to crypto investments. The illegal operations were carried out by individuals who became victims of human trafficking. They were also coerced into participating in scams and money laundering under threat of violence.
In May, FinCEN identified the Cambodian group Huione as a key facilitator of laundering funds from North Korean hacker attacks and scams in Southeast Asia. According to Elliptic, the marketplace conducted cryptocurrency transactions worth at least $11 billion.
In June, it was revealed that after the closure of the illegal online platform Huione Guarantee on Telegram, the bulk of its transaction volume was taken over by Tudou Guarantee.
At the end of July, TRM Labs analysts reported that the attempt to block Huione proved ineffective.