US Treasury sanctions notorious multi-billion Myanmar crime syndicate

The U.S. Treasury has sanctioned a notorious Myanmar-based crime syndicate implicated in large-scale cyber scams and human trafficking. 

On May 1, 2025, the Financial Crimes Enforcement Network (FinCEN) labeled the Cambodia-based Huione Group as a primary money laundering concern. The group allegedly facilitated the movement of funds tied to both North Korean cyber thefts and Southeast Asian “pig butchering” scams.

Now, the U.S Treasury’s Office of Foreign Assets Control (OFAC) is going after the Karen National Army for its crimes against Americans.

OFAC tightens the screws on Myanmar crime syndicate

In a statement released on May 3, 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on the Karen National Army (KNA). The KNA is a transnational criminal organization responsible for several reported cyber crimes and human trafficking.

The organization operates along the Thai-Burmese border. Its leaders are Saw Chit Thu, along with his two sons, Saw Htoo Eh Moo and Saw Chit Chit.

The KNA and its leadership are accused of profiting from a large criminal operation involving cyber scams that have defrauded American citizens of billions of dollars, in addition to human rights abuses such as forced labor and trafficking.

The sanctions from the U.S. Treasury are issued under Executive Orders 13581 (as amended) and 14014, which empower the OFAC to target transnational criminal organizations and individuals who threaten the stability of Burma.

“Cyber scam operations, such as those run by the KNA, generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security,” the Deputy Secretary of the Treasury, Michael Faulkender, said.

According to the Treasury report, many individuals running the KNA scams are not willing participants.

The workers are trafficked from neighboring countries, forced into prison-like compounds and made to carry out scams under the threat of physical violence.

These scams typically target victims when they’re emotionally vulnerable, like a grieving widow or someone going through a breakup.

The scammers take on attractive online personas and interact with their victims to build trust. Victims are tricked into investing in scam projects and are further deceived by fake profits, so they invest more until the perpetrators disappear, leaving victims in significant financial trouble.

According to estimates cited by the Treasury, Americans alone lost over $2B to such scams in 2022, and $3.5B in 2023. Much of this scam activity has been traced to crime zones in Burma, such as the KNA-controlled territory in Karen State.

U.S. joins the EU and UK in sanctioning the KNA

The Karen National Army, headquartered in Shwe Kokko in Burma’s Karen State, was originally known as the Karen Border Guard Force (BGF). The group rebranded as the KNA in 2024, most likely in an attempt to hide its connection to the BGF.

Despite this superficial change, the KNA continued its collaboration with the military faction and enabled it to operate with little to no consequences.

The KNA organization leases land to scam operators, sells utilities to power their compounds, and provides armed security to ensure they continue to operate as normal. Survivors from the scam sites like KK Park have testified to the presence of uniformed guards bearing KNA insignia, proving that the group played a direct role in abusing human rights.

Saw Chit Thu, the KNA’s leader, has already been sanctioned by the United Kingdom and European Union for his role in supporting both the Burmese military and scam operations. It is under his leadership that the KNA expanded its criminal enterprises to a transnational level.

His sons, Saw Htoo Eh Moo and Saw Chit Chit, are also deeply embedded in the organization. Htoo Eh Moo is linked to the KNA-affiliated business ventures, including cyber scam centers, while Chit Chit has actively led KNA troops in cooperation with the Burmese military and holds stakes in several KNA-aligned firms.

Under these newly announced sanctions, all property and financial interests belonging to the KNA and its leaders within U.S. jurisdiction are now blocked. The sanctions extend to any entity owned 50% or more by the sanctioned individuals.

U.S. citizens are prohibited from conducting any transactions that involve the sanctioned individuals or their blocked assets.

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