U.S. Treasury Department Slaps Sanctions on 19 Southeast Asian Entities for Defrauding Americans of Billions of Dollars

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on a large network of Southeast Asian scam operations that defraud Americans of billions annually while using forced labor.

According to a new press release, the action targets 19 entities and individuals across Burma and Cambodia.

The sanctions focus on operations in Shwe Kokko, Burma, where the Karen National Army protects scam centers, and various facilities in Cambodia.

These criminal organizations specifically target Americans through romance scams and fake cryptocurrency investment platforms, with victims losing over $10 billion in 2024 alone – a 66% increase from the previous year.

Key targets include She Zhijiang, who created the Yatai New City scam compound in Burma, and several Cambodian operators who converted casinos into scam centers when scams proved more profitable. The operations use trafficked workers who are coerced through violence, debt bondage, and threats into conducting online fraud.

The sanctioned individuals and companies include Myanmar Yatai International Holding Group, various Cambodian hotel and casino companies, and their operators who have criminal backgrounds including money laundering convictions in China.

Says Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley,

“Southeast Asia’s cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern slavery.

In 2024, unsuspecting Americans lost over $10 billion due to Southeast Aisa-based scams and under President Trump and Secretary Bessent’s leadership, Treasury will deploy the full weight of its tools to combat organized financial crime and protect Americans from the extensive damage these scams can cause.”

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