MYANMAR’S KNA LINKED TO $5.5B+ CRYPTO FRAUD TARGETING AMERICANS

- The U.S. Treasury has targeted the Karen National Army (KNA) for its involvement in major cyber scams and human trafficking operations.

- This transnational criminal group, operating along the Myanmar-Thailand border, is accused of defrauding American citizens of billions through crypto scams.

Key Points:

- On May 3, 2025, the U.S. Treasury's Office of Foreign Assets Control (OFAC) sanctioned the KNA for crimes including large-scale cyber fraud, forced labor, and trafficking.

- The KNA is linked to scams targeting vulnerable Americans, including investment fraud in crypto and romance scams.

- Victims are duped into sending large sums, thinking they’re investing in legitimate platforms.

- U.S. citizens lost over $2 billion to scams in 2022 and $3.5 billion in 2023, many of which were traced to KNA-controlled zones in Burma.

- The KNA is also involved in trafficking workers who are forced to carry out scams under threat of violence, with armed security provided to ensure operations continue smoothly.

- The KNA’s leaders, Saw Chit Thu and his sons, have been sanctioned by the U.S., EU, and UK for their role in cyber crimes and abuses. All assets within U.S. jurisdiction are now blocked.

- U.S. Treasury's action is part of a broader global effort to dismantle cyber scammers and criminal organizations using cryptocurrencies to exploit victims.