Myanmar warlord Saw Chit Thu and his militia have been sanctioned by the U.S. government for running a massive criminal enterprise that has stolen over $3.5 billion from American victims through sophisticated cyber scams.
Key Takeaways
- The U.S. Treasury Department has blacklisted Myanmar’s Karen National Army (KNA), its leader Saw Chit Thu, and his two sons for facilitating cyber scams that stole $3.5 billion from Americans in 2023 alone.
- The KNA is now designated as a “significant transnational criminal organization,” barring it from U.S. property ownership and transactions with American citizens.
- Scam operations run from KNA territory along the Thai-Myanmar border include cryptocurrency investment frauds and romance scams, with victims lured into investing before scammers disappear with their money.
- Human trafficking is central to the operation, with victims forced to work in call centers under threats of violence to perpetrate online scams.
- The United Kingdom and European Union had already sanctioned Saw Chit Thu in 2023 and 2024, respectively, indicating growing international concern.
A Criminal Empire on Myanmar’s Border
The Karen National Army, under Saw Chit Thu’s leadership, has transformed from a breakaway militia group into a sophisticated criminal enterprise operating from Shwe Kokko in Myanmar’s Myawaddy township near the Thai border. Since 2017, this area has seen massive construction developments stemming from a joint venture involving She Zhijiang, a naturalized Cambodian citizen with extensive connections to gaming operations throughout Southeast Asia. This physical infrastructure has become the backbone of a vast criminal network specializing in cyber fraud, particularly targeting Americans with sophisticated investment scams.
The KNA’s business model is disturbingly efficient. The group profits by leasing land to organized crime syndicates, providing security services, facilitating human trafficking operations, and managing smuggling routes. They also supply essential utilities for the scam compounds, creating a comprehensive ecosystem for criminal activities. The militia maintains close ties with Myanmar’s military junta, which has allowed these operations to flourish despite their increasingly visible international profile.
“Treasury is committed to using all available tools to disrupt these networks and hold accountable those who seek to profit from these criminal schemes” – Treasury Deputy Secretary Michael Faulkender
The Human Cost Behind Digital Scams
The criminal operations run by Saw Chit Thu and the KNA involve a disturbing element of human trafficking. Victims are lured with false promises of legitimate employment and then trafficked into call centers or repurposed hotels and casinos. Once there, they are forced to conduct online scams targeting strangers, primarily Americans, working under constant supervision and threats of violence for non-compliance. This modern form of slavery creates a horrific situation where victims are turned into perpetrators under duress.
Financial losses to Americans have been staggering, with Treasury Department figures showing over $2 billion stolen in 2022, rising to $3.5 billion in 2023. The most common schemes include cryptocurrency investment scams and so-called “pig butchering” romance schemes. In these scams, victims are gradually convinced to invest increasing amounts of money based on fabricated investment returns, only to have the scammers disappear completely once they’ve extracted maximum value from their targets.
International Response to Growing Threat
The U.S. sanctions represent an escalation in the international response to Saw Chit Thu’s criminal network. The designation of the KNA as a “significant transnational criminal organization” brings serious consequences, blocking any property they might hold in the United States and prohibiting Americans from conducting any transactions with the group or its members. Saw Chit Thu’s two sons, who hold key positions within the criminal hierarchy, are also specifically named in the sanctions.
These actions follow similar measures taken by the United Kingdom in 2023 and the European Union in 2024, indicating growing global coordination against these criminal enterprises. The Treasury Department has additionally identified Cambodia’s Huione Group as a central player in laundering money for these operations, as well as for North Korea and other criminal organizations throughout Southeast Asia, extending the reach of enforcement efforts beyond Myanmar’s borders.
Economic Impact and Ongoing Challenges
The economic impact of these cyber scams extends far beyond the immediate victims. The billions of dollars stolen represent not just personal financial devastation for thousands of Americans but also contribute to broader issues of financial instability and diminished trust in digital commerce. These criminal enterprises have effectively weaponized modern financial technology, creating sophisticated operations that can be difficult to detect until significant damage has already occurred.
While the sanctions represent an important step, the challenge of dismantling these operations remains significant. The remote location of these compounds, protection from local military forces, and sophisticated money laundering techniques all create substantial obstacles for law enforcement. The cross-border nature of these crimes, involving victims in America and operations spanning multiple Southeast Asian countries, further complicates enforcement efforts, requiring unprecedented levels of international cooperation to effectively combat this growing threat.
