Crypto Scams Trigger US Sanctions on Myanmar’s Most Powerful Militia
In a decisive move to address global cybercrime and human trafficking, the US Treasury Department has officially designated the Karen National Army (KNA) as a transnational criminal organisation, sanctioning the Myanmar-based militia group for its involvement in crypto scams and other illicit activities.
According to a 5 May statement from the Treasury's Office of Foreign Assets Control (OFAC), the KNA has been orchestrating numerous criminal operations, including the notorious “pig butchering” scam, which entices victims to invest increasingly larger sums into fraudulent cryptocurrency schemes.
The Treasury noted that US citizens have collectively lost billions of dollars to scams linked to Myanmar, underscoring the far-reaching impact of these criminal networks.
The release reads:
“Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the Karen National Army (KNA), a militia group in Burma, as a transnational criminal organization, along with the group’s leader Saw Chit Thu, and his two sons, Saw Htoo Eh Moo and Saw Chit Chit, for their role in facilitating cyber scams that harm U.S. citizens, human trafficking, and cross-border smuggling.”
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned the Karen National Army, a militia group in Burma, as a transnational criminal organization, along with the group’s leader Saw Chit Thu, and his two sons, Saw Htoo Eh Moo and Saw Chit Chit,…
— Treasury Department (@USTreasury) May 5, 2025
KNA Accused of Running Crypto Scam Networks
International organisations, including the US, continue to use “Burma” instead of Myanmar to signal their refusal to recognise the military regimes that have controlled the country since the 1989 coup, when the military renamed the nation.
The KNA, based in Shwe Kokko in Burma's Karen State along the Thai border, has allegedly turned its territory into a central hub for online scam syndicates and trafficking networks.
Originally known as the Karen Border Guard Force, the group rebranded to the KNA in March 2024 to distance itself from the Burmese military.
Despite this shift, US officials maintain that the KNA still profits from military ties, with cooperation continuing as recently as September 2024.
Condemning the KNA’s activities, Treasury Deputy Secretary Michael Faulkender stated:
“Cyber scam operations, such as those run by the KNA, generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security.”
Cyber scam operations, such as those run by the KNA, generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security.
Treasury is committed to using all available tools to disrupt these networks…
— Deputy Secretary Michael Faulkender (@TreasuryDepSec) May 5, 2025
The US sanctions aim to dismantle these criminal operations and hold those profiting from digital fraud accountable.
A key focus of the sanctions is the exposure of a vast fraud network run from retrofitted casinos and hotels within KNA-controlled areas.
These sites reportedly serve as detention-like facilities where trafficked individuals are forced to participate in scams under threat of violence.
Pig Butchering Scams Exploit Victims as Perpetrators
Victims-turned-criminalss of "pig butchering" scams devote countless hours to creating deceptive online personas, often posing as romantic partners or financial advisors, in order to lure unsuspecting victims—primarily US citizens—into fraudulent cryptocurrency investment schemes.
These scams unfold over months, with perpetrators exploiting emotional vulnerabilities such as divorce or financial distress.
To build trust, scammers sometimes hold video calls using attractive models, making their manipulations even more convincing.
Victims are shown fabricated profits on fake trading platforms, encouraging them to invest more before the scammers vanish with their funds.
🚨 According to a report from @CyverAlerts, Pig butchering crypto scams have cost victims a staggering $3.6 billion in 2024!#CryptoScamshttps://t.co/IRQy9YO9WB
— Cryptonews.com (@cryptonews) December 27, 2024
Losses from such schemes reportedly surpassed $2 billion in 2022 and soared to $3.5 billion in 2023 alone.
According to TRM Labs, these scams accounted for over $4.4 billion in stolen funds in 2023.
Pig butchering scams have a profound impact, not only in the crypto space but across various sectors.
The fraud typically involves long-term engagement with victims via social media or messaging platforms, where scammers cultivate trust before convincing them to invest in fake or manipulated crypto schemes.
In Southeast Asia, such scams are frequently tied to human trafficking networks, with trafficked individuals being coerced into committing fraud under threat of violence.
The KNA is alleged to orchestrate these operations, facilitating both scam and trafficking networks at scale.
Survivours of the notorious KK Park compound have reported seeing security personnel in KNA uniforms, supporting claims that the group provides land, protection, and resources for these criminal operations.
The KNA is also accused of leasing territory to syndicates, supplying utilities to scam compounds, and facilitating human trafficking routes.
In a significant move in May 2025, the Financial Crimes Enforcement Network (FinCEN) designated the Huione Group, a Cambodian financial network tied to DPRK hackers and Southeast Asian scam syndicates, as a primary money laundering concern under the USA PATRIOT Act.
Today, FinCEN issued a finding and notice of proposed rulemaking that identifies Cambodia-based Huione Group as a financial institution of primary money laundering concern and proposes to sever its access to the U.S. financial system. https://t.co/E0KbsjglXe pic.twitter.com/VCWGiSiilt
— Financial Crimes Enforcement Network (FinCEN) (@FinCENnews) May 1, 2025
This designation highlights the transnational scope of the threat, linking multiple scam networks across regional borders.
Inside the Crime Family Empire with Worldwide Consequences
Saw Chit Thu, the leader of KNA, has been sanctioned by the United Kingdom (2023) and the European Union (2024) for his alleged involvement in scam operations and his collaboration with Myanmar’s military regime.
The public prosecutor in the human trafficking case involving Myanmar's Border Guard Forces (BGF) has paused the request for arrest warrants.
The Department of Special Investigation (DSI) is investigating the trafficking of eight Indian nationals who were forced to work for a… pic.twitter.com/SRxmG9waFD
— Thai Enquirer (@ThaiEnquirer) February 13, 2025
Thai authorities have also issued a warrant for his arrest.
Under his leadership, the KNA has become a central player in the region’s illicit economy, facilitating and profiting from various criminal activities.
His two sons, Saw Htoo Eh Moo and Saw Chit Chit, are heavily involved in this enterprise.
Saw Htoo Eh Moo reportedly manages KNA-affiliated businesses, including cyber scam operations, while Saw Chit Chit leads KNA battalions fighting anti-regime forces and holds directorial roles in companies tied to the scam economy.
Both sons have been sanctioned by the US Department of the Treasury's OFAC under Executive Orders 13581 and 14014 for their active roles in these operations.
[Update] The Office of the Attorney General's Department of Trafficking in Persons will meet with the DSI on February 17 to discuss issuing arrest warrants for the BGF leaders.
If both parties agree, they will submit a request to the Criminal Court for the warrants.#Thailand…
— Thai Enquirer (@ThaiEnquirer) February 13, 2025
As a result of the sanctions, any assets tied to the KNA or the named individuals under US jurisdiction are now frozen.
US persons are prohibited from conducting business with them, and entities with 50 percent or more ownership by the sanctioned parties face similar restrictions.
Non-US individuals or entities that facilitate transactions for the sanctioned parties may themselves face secondary sanctions.
While OFAC emphasized that the primary goal of these sanctions is to alter behaviour rather than to punish, designating the KNA as a major transnational criminal organisation sends a clear message.
The US government aims to disrupt the operations of those directly involved in scams and trafficking, while also dismantling the financial infrastructures that sustain such networks.