U.S. Sanctions Southeast Asian Crypto Crime Networks Over $10B Scam Losses

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on nine entities and individuals in Burma's Shwe Kokko region, identified as a hub for cryptocurrency investment scams. The action also targets four individuals and six entities running forced labor compounds in Cambodia, where workers are coerced into perpetrating digital asset frauds against global victims.

These networks allegedly siphoned over $10 billion from Americans in 2024 through 'pig butchering' schemes—a type of long-con investment scam that exploits both victims and forced laborers. "Southeast Asia's cyber scam industry not only threatens financial security but subjects thousands to modern slavery," stated Treasury Under Secretary John K. Hurley.

The sanctions highlight growing regulatory scrutiny of cryptocurrency's illicit use cases, though no specific digital assets were named in the enforcement action. Chainalysis confirmed tracking the sanctioned networks' blockchain activity, underscoring the role of forensic analysis in combating crypto-enabled crime.