US Treasury sanctions Myanmar warlord who backed cyber fraud, profited from supporting organized crime

The US Treasury Department's Office of Foreign Assets Control has imposed sanctions on the Karen National Army, a Myanmar militant group, for allegedly engaging in cyber fraud and human trafficking that harms US citizens.

Treasury Sanctions Burma Warlord and Militia Tied to Cyber Scam Operations | US Department of the Treasury

According to the Treasury Department, the Karen Army leases land it controls to other criminal organizations, and makes huge profits from human trafficking, smuggling, and utility bill transactions related to fraudulent activities, as well as from providing security for groups involved in fraudulent activities.

As a result, the Treasury Department has designated the Karen National Army as a transnational criminal organization and imposed sanctions on its leader, Saw Chit Thu, and his two sons, Saw Htoo Eh Moo and Saw Chit Chit, banning them from doing business or conducting business in the United States and freezing their assets in the United States.

In fact, financial losses to Americans due to fraud operations based in Myanmar and other Southeast Asian countries are on the rise, reaching more than $2 billion in 2022 and $3.5 billion in 2023.

In these types of scams, the scammers exploit the victims' weaknesses, such as recent breakups, bereavement, or financial difficulties, and use video chats to ease their anxieties while offering promises of a wealthy and glamorous lifestyle to lure them into investing in fake cryptocurrency trading platforms managed by the scammers. Victims are tricked into investing more and more money because they believe they are making profits from their investments.

The scammers are often themselves victims of human trafficking, lured into prison-like call centers or converted hotels and casinos, where they are forced through violence and intimidation to scam strangers.

The Karen National Army is said to have ties to Myanmar's military regime, and Saw Chit Thu was sanctioned by the UK in 2023 and by the European Union in 2024 for his involvement in fraud and ties to the Myanmar military regime.

'Cyber fraud, like that supported by the Karen National Army, generates billions of dollars in revenue for criminal organizations. Treasury is committed to using all means at our disposal to disrupt these networks and hold those responsible accountable,' Deputy Treasury Secretary Michael Volkendorff said.