In a sweeping effort to curb transnational cybercrime and human rights abuses, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today imposed sanctions on a sprawling network of scam centers operating in Southeast Asia.
These centers, which exploit forced labor and violence, defrauded Americans of more than $10 billion in 2024.
The designations target nine entities in Shwe Kokko, Burma, under the protection of the OFAC-designated Karen National Army (KNA), and ten entities based in Cambodia, marking one of the most extensive actions against cyber-enabled financial crime to date.
Scam operations in Shwe Kokko have flourished under the KNA’s collaboration with the Burmese military. Yatai New City—a compound developed by She Zhijiang and KNA leader Saw Chit Thu—serves as the epicenter for gambling, drug trafficking, prostitution, and elaborate “pig butchering” investment scams targeting overseas victims.
Recruiters lure workers with false promises, only to subject them to debt bondage, beatings, and threats of forced prostitution when they fail to meet daily extortion quotas.
These coerced operators use messaging apps and fake investment platforms to convince victims to transfer funds, which are then siphoned by the criminals.
In Cambodia, former casinos in Sihanoukville and Bavet have been repurposed into virtual currency scam complexes.
Companies such as T C Capital Co. Ltd. and K B Hotel Co. Ltd. facilitate “pig butchering” scams by hosting trafficked laborers in casino-hotels, laundering proceeds through on-site gambling operations.
Senior executives—including Chinese expatriates convicted of money laundering and bribery—exploit political connections to shield their activities from local enforcement.
Sanctions Authorities and Impact
The Treasury’s action leverages a suite of executive orders to dismantle the financial infrastructure supporting these operations:
| Executive Order | Targeted Activity |
|---|---|
| E.O. 13851 (Transnational Crime) | Large criminal organizations and facilitators |
| E.O. 13694 (Cyber-Enabled Threat) | Malicious cyber operations and supporting actors |
| E.O. 13818 (Human Rights Abuse) | Serious human rights abuses, including forced labor |
| E.O. 14014 (Burma Stability) | Threats to peace, security, and stability in Burma |
By blocking all U.S. property and interests of designated persons and entities, and prohibiting transactions with U.S. persons, OFAC aims to sever the financial lifelines of these criminal networks.
Secondary sanctions will also apply to any entity owned 50 percent or more by a sanctioned party, deterring third-party facilitators from engaging with them.
Under Secretary for Terrorism and Financial Intelligence John K. Hurley addressed that “Southeast Asia’s cyber scam industry not only threatens the financial security of Americans, but subjects thousands to modern slavery.
Treasury will deploy the full weight of its tools to combat organized financial crime and protect Americans from the extensive damage these scams cause.”
Today’s designations build on a series of targeted measures:
On May 5, 2025, OFAC designated the KNA and its leaders for human trafficking and cyber scams. On May 29, 2025, OFAC sanctioned Funnull for selling IP addresses used in scam websites.
These coordinated actions underscore the U.S. government’s commitment to disrupting the financial ecosystems that enable cybercrime and human exploitation.
Earlier, FinCEN identified Huione Group as a primary money laundering concern under the USA PATRIOT Act, citing its role in laundering proceeds from DPRK cyber heists and Southeast Asia-based scams.
In September 2024, OFAC sanctioned She Zhijiang’s conglomerate and related resorts for serious human rights abuses tied to forced labor in scam centers.
Financial institutions and other U.S. persons are reminded to exercise due diligence to avoid impermissible dealings with designated entities. Violations can trigger severe civil and criminal penalties.
As Treasury continues to update the Specially Designated Nationals and Blocked Persons List, the ultimate goal remains to incentivize behavioral change and uphold the integrity of the global financial system.
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