Key Takeaways: The U.S. Treasury sanctioned Burma’s Karen National Army and its leaders for allegedly running crypto scam syndicates and human trafficking networks that generated billions in victim losses. The KNA’s territory became a hub for “pig butchering” scams, where trafficked people were forced to defraud victims online. These sanctions mark a major escalation in U.S. efforts to disrupt transnational cybercrime. In a sweeping move to combat transnational cybercrime and human trafficking, the U.S. Treasury Department has designated the Karen National Army (KNA) as a transnational criminal organization, accusing the Burma-based militia of fueling a vast criminal ecosystem. The sanctions, announced on May 5 by the Treasury’s Office of Foreign Assets Control (OFAC), also target the group’s leader Saw Chit Thu and his two sons, Saw Htoo Eh Moo and Saw Chit Chit, for their direct involvement in allegedly orchestrating scams and trafficking networks that have collectively cost American victims billions of dollars. Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned the Karen National Army, 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,… — Treasury Department (@USTreasury) May 5, 2025 KNA Facilitates Crypto Scams The KNA, headquartered in Shwe Kokko in Burma’s Karen State along the Thai border, is alleged to have transformed its territory into a hub for online scamming syndicates and smuggling networks. Once known as the Karen Border Guard Force, the group rebranded as the Karen National Army in March 2024 to distance itself from the Burmese military regime. However, U.S. officials say the relationship remains intact, with the KNA continuing to profit from military cooperation as recently as September 2024. Treasury Deputy Secretary Michael Faulkender condemned the KNA’s activities, stating, “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.” He added that the sanctions seek to disrupt these criminal networks and hold those profiting from digital deception accountable. 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. Treasury is committed to using all available tools to disrupt these networks… — Deputy Secretary Michael Faulkender (@TreasuryDepSec) May 5, 2025 Central to the Treasury’s sanctions is the uncovering of an expansive fraud enterprise operated from retrofitted casinos and hotels in KNA-controlled territory. These facilities serve as prison-like compounds for trafficked people forced to engage in scams under threat of violence. Victims-turned-perpetrators work long hours creating fake online identities, often posing as romantic interests or financial advisors, to lure unsuspecting targets, primarily U.S. citizens, into cryptocurrency investment scams, known colloquially as “ pig butchering .” According to a report from @CyverAlerts, Pig butchering crypto scams have cost victims a staggering $3.6 billion in 2024! #CryptoScams https://t.co/IRQy9YO9WB — Cryptonews.com (@cryptonews) December 27, 2024 These schemes play out over months. Scammers exploit emotional vulnerabilities like divorce or financial hardship, sometimes going so far as to hold video calls using attractive models to build trust. Victims are shown fake profits on bogus trading platforms, which induce them to commit more funds before the scammers disappear with the money. Losses from such operations reportedly exceeded $2 billion in 2022 and ballooned to $3.5 billion in 2023 alone. KNA’s influence over these operations extends beyond logistics. Survivors from KK Park, a notorious scam compound, reported seeing security personnel in KNA uniforms, reinforcing claims that the group provided land and protection for these operations. The KNA has been accused of leasing territory to other criminal syndicates, supplying utilities for scam compounds, and facilitating human trafficking routes. In May 2025, FinCEN declared the Huione Group, a Cambodian financial network implicated in laundering funds for DPRK hackers and Southeast Asian scam syndicates, as a primary money laundering concern under the USA PATRIOT Act. Today, FinCEN issued a finding and notice of proposed rulemaking that identifies Cambodia-based Huione Group as a financial institution of primary money laundering concern and proposes to sever its access to the U.S. financial system. https://t.co/E0KbsjglXe pic.twitter.com/VCWGiSiilt — Financial Crimes Enforcement Network (FinCEN) (@FinCENnews) May 1, 2025 The designation further linked these scam networks across regional borders, illustrating the transnational nature of the threat. A Crime Family Empire and Global Repercussions Saw Chit Thu leads the KNA and has been sanctioned by the United Kingdom (2023) and the European Union (2024) for his alleged role in scam operations and cooperation with the Burmese military. In fact, the Thai authorities declared him wanted. The public prosecutor in the human trafficking case involving Myanmar's Border Guard Forces (BGF) has paused the request for arrest warrants. The Department of Special Investigation (DSI) is investigating the trafficking of eight Indian nationals who were forced to work for a… pic.twitter.com/SRxmG9waFD — Thai Enquirer (@ThaiEnquirer) February 13, 2025 Under his leadership, the KNA has become a cornerstone of the region’s scam economy. The group facilitates criminal activity and profits directly from it. His two sons play key roles in this enterprise as Saw Htoo Eh Moo is reportedly involved in KNA-linked businesses, including cyber scam centers. Meanwhile, Saw Chit Chit commands KNA battalions fighting anti-regime forces and holds directorships in businesses tied to the scam economy. OFAC alleges both sons have acted on the KNA’s behalf and sanctioned them under Executive Orders 13581 and 14014, citing their familial ties and active participation. The sanctions have immediate financial consequences. Any assets held by the KNA or those named under U.S. jurisdiction are now frozen. U.S. persons are barred from conducting transactions with them, and any entities owned 50 percent or more by the designated persons are similarly blocked. Non-U.S. persons who assist or facilitate transactions on behalf of the sanctioned parties may themselves be subject to secondary sanctions. While OFAC emphasized that the ultimate goal of sanctions is behavioral change rather than punishment, the designation of the KNA as a major transnational criminal organization sends a strong message. The U.S. government seeks to curtail the operations of those directly involved in scams and trafficking and dismantle the financial infrastructures that allow such networks to thrive. The post U.S. Treasury Crackdown Exposes Karen National Army’s $3.5B ‘Pig-Butchering’ Crypto Scam Empire appeared first on Cryptonews .
