U.S. Treasury Sanctions 19 Myanmar, Cambodia Entities for Forced Crypto Scams

The U.S. Treasury Department has imposed sanctions on 19 entities across Myanmar and Cambodia for orchestrating large-scale cryptocurrency scam networks. These operations allegedly defrauded Americans of more than $10 billion in 2024 alone. The crackdown focuses on transnational criminal organizations exploiting forced labor and human trafficking to execute 'pig butchering' scams.

Nine entities in Shwe Kokko, Myanmar, operating under the protection of the sanctioned Karen National Army, were designated, along with ten Cambodia-based groups. Victims were reportedly lured under false pretenses, then subjected to debt bondage, violence, and threats of forced prostitution to coerce participation in scams targeting U.S. citizens.

English-speaking recruits were systematically deployed to engage Americans via messaging apps and texts. Former scammers described daily quotas and captivity until ransoms were paid. The Treasury's action underscores growing regulatory scrutiny of crypto-related illicit activities in Southeast Asia.