The U.S. Treasury Department sanctioned 19 individuals and entities allegedly operating cyber scam networks across Southeast Asia that stole over $10 billion from Americans in 2024.
The criminal networks often recruit workers under false pretenses, then use debt bondage and threats of forced prostitution to coerce them into scamming victims online.
The sanctions target operations in Burma’s notorious Shwe Kokko region and multiple sites in Cambodia.
“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,” Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley said in a news release. “Treasury will deploy the full weight of its tools to combat organized financial crime and protect Americans from the extensive damage these scams can cause.”
The sanctions reveal how criminal organizations have transformed Southeast Asian cities into hubs for sophisticated online fraud. These operations use forced labor, violence, and human trafficking to power their schemes.
Former scammers report being directed to specifically target Americans with daily quotas. The operations seek recruits with strong English skills to execute romance scams and fake cryptocurrency investments.
In Burma, the sanctions focus on Yatai New City in Shwe Kokko, a compound created by She Zhijiang and Saw Chit Thu. The two transformed a small village into what the Treasury describes as a resort city “custom-built for gambling, drug trafficking, prostitution, and scams.”
Escaped victims reported being held captive until families paid ransoms. They described beatings for missing quotas and forced commercial sex work.
The Karen National Army allegedly provides protection for these operations. KNA officials Tin Win and Saw Min Min Oo control property hosting scam centers and manage supporting companies.
She Zhijiang, arrested in Thailand in 2022 on a Chinese Interpol Red Notice, owns 70% of Myanmar Yatai International Holding Group. The company operates Yatai New City through a joint venture with the KNA’s holding company.
In Cambodia, the Treasury targeted former casinos that pivoted to cyber scams when fraud proved more profitable. The sanctions hit companies in Sihanoukville owned by convicted money launderers Dong Lecheng and Xu Aimin.
Xu, sentenced to 10 years in Chinese prison for running a billion-dollar illegal gambling ring, now owns the KB Hotel. Enslaved workers at the complex are reportedly forced to conduct virtual currency scams.
The sanctions also reach Heng He Casino in Bavet, Cambodia, and a scam compound in Pursat Province. Both operations involve forced labor and cryptocurrency fraud.
Treasury’s action freezes all U.S. assets of the designated individuals and entities. It prohibits Americans from conducting any transactions with them.
The sanctions build on recent Treasury efforts against Southeast Asian cybercrime. In May, officials designated the Karen National Army as a transnational criminal organization and identified Cambodia’s Huione Group as a primary money laundering concern.
Treasury emphasized that sanctions aim to change behavior, not punish permanently. The department maintains a process for individuals and entities to petition for removal from sanctions lists.