Myanmar’s junta ponders death penalty, life imprisonment for crypto fraud operators

The military regime in Myanmar has released a proposed “Anti-Online Scam Bill” in which perpetrators of online scams who commit acts of violence, torture, illegal arrests, detention, or cruel treatment to compel other people to engage in online scams will be sentenced to death penalties. 

The bill also proposes imposing life sentences on those who operate centers for online and digital currency scams, also known as scam compounds. This bill was tabled on 14 May 2026, and Myanmar’s military-controlled parliament is expected to meet during the first week of June.

Myanmar considers harsh penalties for scammers

According to reports, the proposed bill follows an increasing trend of cooperation between Myanmar and China in cracking down on scam rings that operate across their borders. In February 2026, the Supreme People’s Court of China reported that two major scam rings from Myanmar – the Ming and Bai families, considered among the four major families based in northern Myanmar – had been dismantled. 

Chinese courts handed down life sentences or even heavier punishments for 39 people, with 16 sentenced to death. Eleven members of the Ming family were hanged to death on 29 January 2026 after their conviction in September 2025 in Wenzhou.

By the end of 2025, Chinese courts had handled more than 27,000 cases related to telecommunications fraud in northern Myanmar, with over 41,000 repatriated perpetrators convicted. 

The Myanmar government had arrested and turned over suspected scam workers and their victims to the Chinese government, with the transfer process occurring at the Mae Sot airport in Thailand in February 2025. 

The draft law is part of Myanmar’s attempt to tackle domestic instability and foreign criticism of the country’s role as a base for scammers across Southeast Asia. As it stands, the Anti-Online Scam Bill will place the strictest punishments ever seen in the region,

How did Myanmar get here?

Prior to 2021, Myanmar also had lax regulations for gambling and online gambling in areas bordering Thailand and China. Developments such as the Shwe Kokko Yatai New City, established in 2017 as a mixed-use commercial area, were located on the Thai-Myanmar border. 

Where once there was gambling, the activities soon changed to cyber fraud due to border closures during the pandemic. Strongholds were created or enlarged in Shwe Kokko, KK Park close to Myawaddy, Laukkai in Kokang, and Mong La. Such fortified areas served as business centers with thick walls, armed security, and Starlink satellite internet connectivity.

According to the UN report, at least 120,000 individuals had been subjected to online fraud in Myanmar. The Chinese syndicates, referred to by some as “the four major families,” controlled many of these compounds, with the Laukkai syndicate alone earning more than $1.5 billion until its disbandment.

Daily activities at these compounds revolve around a fraud known as “pig butchering,” a romance and investment scam characterized by the gradual “fattening” of targets prior to their “slaughter.” 

The trafficked laborers, tricked using false job postings, are transported through China, Africa, South Asia, and Southeast Asia.

Cambodia sets legal precedents for crypto scammers

Meanwhile, the Cambodian parliament has adopted the nation’s first law aimed at tackling online scam centers that have cheated foreign citizens out of billions of dollars. The bill was adopted by 112 members of parliament in a unanimous vote on 30 March 2026, with an additional report confirming the vote in the parliament published on 3 April 2026. 

Speaking to the press, Minister of Justice Koeut Rith emphasized that it will send a clear message to “cyber scammers that Cambodia will not host their scams anymore.” He further noted that it was in line with the interests of the Cambodian people and nation.

The new law clearly outlines penalties based on the seriousness of the crime. A regular internet scammer is liable for two to five years’ imprisonment and a fine of up to 500 million riels ($125,000). The leader of an internet scam group will be imprisoned for five to ten years and fined up to 1 billion riels ($250,000). 

For scams that are violent in nature and entail torture, kidnapping, human trafficking, and forced labor, the leader is sentenced to 10 to 20 years in prison and fined up to 2 billion riels ($500,000).

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