US Treasury sanctions Myanmar militia group for alleged crypto scams

The United States Department of the Treasury has sanctioned a Myanmar militia group known as the Karen National Army (KNA), accusing it of crypto-related scams and other criminal activities.

Accordingto a May 5 press release issued by the agency, the Karen National Army has been orchestrating a variety of crypto scams, including the infamous “pig butchering” scam, which lures victims into contributing more and more to fake crypto schemes. Americans “have collectively lost billions of dollars” from scams such as those emanating from Myanmar, the release reads, without specifying an amount.

“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,” the release reads.

Many international bodies, including the US, continue to refer to “Burma,” the country’s former name, to demonstrate that they don’t recognize the military regimes that have been in power at various times since a 1989 coup in which the military changed the name to Myanmar. The KNA operates in southeastern Myanmar, along the Thailand border.

The Treasury’s Office of Foreign Assets Control (OFAC) hasissuednumerous sanctions against crypto-offenders over the past few years, including Middle East-based terrorist groups, cybercrime units operating overseas, and privacy-focused crypto technologylike Tornado Cash.

Related:FBI warns of North Korean ’social engineering’ schemes to steal crypto

Crypto scams target US residents

According to the Federal Bureau of Investigation (FBI), Americanslost $9.3 billion to crypto scamsin 2024, anincrease of roughly 66%from 2023. The most affected group is formed by individuals over the age of 60, who reported a cumulative loss total of $2.8 billion.

Pig butchering scams are known for their significant impact on victims, both in the crypto space and beyond. The scam consists of a long-term financial fraud where scammers build trust with victims over time, often through social media or messaging platforms, before convincing them to invest in fake or manipulated crypto schemes.Accordingto TRM Labs, a blockchain intelligence company, these scams accounted for well over $4.4 billion stolen in 2023.

According to the Treasury Department’s press release, this type of scam is currently common in Southeast Asia, primarily involving trafficked individuals defrauding victims. The Karen National Army is allegedly engaged in orchestrating both pig butchering scams and human trafficking networks that enable them to operate at scale.

Magazine: Influencers shilling memecoin scams face severe legal consequences

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