The United States has imposed sanctions on an armed group allied with Myanmar’s military junta, accusing it of enabling sprawling cyber-scams that have defrauded American victims of billions of dollars.
On Monday, the U.S. Treasury Department designated the Karen National Army (KNA) as a transnational criminal organization, also targeting three of its senior figures: Colonel Saw Chit Thu and his two sons, Saw Htoo Eh Moo and Saw Chit Chit. According to the Treasury, the KNA governs a large border region with Thailand that has become a hub for cyber-scam syndicates.
These operations rely heavily on human trafficking, authorities said. Victims are lured with fake job offers from across Asia, then forcibly confined in compounds where they are compelled to participate in online fraud schemes. Many are transported from Thailand into Myanmar and held in guarded facilities.
The sanctions come after calls from activist groups for Thai authorities to take action. Yadanar Maung, a spokesperson for Justice For Myanmar, stated that the U.S. move should pressure Thai officials to accelerate arrest warrants against Saw Chit Thu and extend them to his family members.
The KNA controls a corridor in Myanmar’s Karen state, including the Shwe Kokko area, notorious for “pig butchering” scams run from fortified call centers and repurposed casinos. One prominent site is Yatai New City, an alleged $15-billion development that activists say serves as a front for illegal gambling and cybercrime. The project was led by She Zhijiang, currently jailed in Thailand and fighting extradition to China on charges of running illicit online gambling operations.
A May 2024 report by Justice For Myanmar detailed how the KNA profits from leasing land to criminal networks, selling utilities to scam operators, and providing armed security. Corporate records cited in the report show Saw Chit Thu and his three children hold shares in nine companies in the region, including two owned by his son that operate fraudulent compounds.
The Treasury noted that scammers exploit victims’ personal vulnerabilities, such as recent breakups or financial distress, coaxing them into fake cryptocurrency investments. Data shows Americans lost an estimated $2 billion to such schemes in 2022 and $3.5 billion in 2023, largely run from Myanmar and other Southeast Asian countries.
The latest U.S. sanctions are part of a broader international effort, following similar measures by the U.K. in 2023 and the European Union in 2024.