The US Department of the Treasury has imposed sanctions on a Burmese militia group, the Karen National Army, which is allegedly operating a large-scale hub for cyber scammers. As a result, the group has been blocked from accessing the US financial system. According to US authorities, the organization has been providing a safe haven for transnational criminal groups to carry out illicit activities such as human trafficking and smuggling in the border region under its control.
The KNA is also accused of facilitating large-scale cyber scams and cryptocurrency thefts, resulting in billions of dollars in losses. The group, which has ties to the Burmese military, has allegedly converted hotels and casinos into 'pig butchering' scam operations, where US citizens are lured into fraudulent relationships and have their money stolen through cryptocurrency. Those involved in the scams are often held captive or coerced into carrying out the thefts, which can last for months and involve attractive models engaging in video calls. The new sanctions, which also target the group's leader Saw Chit Thu and his sons, will block the use of US assets and interactions with US individuals or entities.
This move follows a similar action taken by the US last week against the Cambodian company Huione Group, which was accused of providing a money-laundering outlet for criminal organizations in Southeast Asia.