US Sanctions 19 Myanmar and Cambodian Groups Over Crypto Scam Operations

Highlights:

• The US has sanctioned 19 Myanmar and Cambodian groups as part of efforts to protect Americans from forced labour exploitation scams.
• The US Treasury Department’s investigations show the entities operate with strong protection from the Karen National Army (KNA).
• The Treasury Department also noted that unemployed and job-seeking American citizens were the targets of the sanctioned scamming group.

On September 9, 2025, a Southeast Asia media reported that the United States government had sanctioned 19 Myanmar and Cambodian fraud groups. The move forms part of the US government’s efforts to protect Americans from forced labour exploitation scams. According to the publication, the sanction targets nine Myanmar and ten Cambodian entities. The US government investigations showed this group forced its American victims into crypto-related investment scam deals.

Notably, the nine Myanmar entities allegedly operate with protection from the already-sanctioned Karen National Army (KNA). In a statement, Anthony Hurley, currently serving as the US Treasury Under Secretary for Terrorism and Financial Intelligence, described the sanctioned operations as a threat to Americans’ financial security. He also expressed commitment to protecting vulnerable Americans from related crimes.

Yesterday, the U.S. Department of the Treasury announced sanctions against individuals and entities connected to cyber scam centers in Burma and forced labor operations in Cambodia. Secretary Rubio issued a statement underscoring that these actions aim to disrupt their…

— U.S. Embassy Burma (@USEmbassyBurma) September 9, 2025

The US Treasury Department Discloses Scam Targets

According to the US Treasury Department, Southeast Asia scammers have emerged as a major concern for the Trump-led administration. Statistics show American citizens lost over $10 billion to scam schemes originating from this region in 2024. Meanwhile, the US Treasury Department also identified unemployed and job-seeking Americans as targets of the fraudulent acts. The department added that these victims are deceived into entering the scam camps, where they are forced to facilitate online crypto fraud under violent threats.

U.S. Treasury has sanctioned 9 Myanmar entities and 10 Cambodian entities for forcing trafficking victims to run crypto investment scams. Officials said these groups used debt bondage, violence, and sexual exploitation to coerce victims into targeting strangers through messaging…

— Wu Blockchain (@WuBlockchain) September 9, 2025

Efforts Intensify as the US Sanctions 19 Myanmar and Cambodian Groups

Amid growing cases of crypto scams, the US Treasury has intensified its crackdown efforts. Last month, Crypto2Community reported that Garantex Europe OU and its successor platform, Grinex, were hit with fresh sanctions from the United States Treasury Department.

According to the publication, the treasury officials accused the Russian-based trading platform of processing over $100 million in illicit transactions linked to ransomware groups. The Treasury also described the act of exploiting other trading platforms for ransomware and money laundering as a national security threat, impacting the reputation of other honest exchanges.

Moreover, Garantex’s sanction comes a few months after the US, German, and Finnish authorities cracked down on the exchange. The combined action resulted in freezing Garantex’s website domains and infrastructures. The exchange’s servers, including historical copies of customer and accounting records, were also seized to prevent sanctions evasion.

In May 2025, the US Treasury, through its Financial Crimes Enforcement Network (FinCEN) bureau, proposed sanctions against the Huione Group. The move is targeted towards blocking the group and its subsidiaries from linking with the American banking system.

The Treasury described the Huione Group as a key player in money laundering and other scam operations. In addition, the Treasury accused this group of aiding the notorious Lazarus Group and other Southeast Asian criminal syndicates in stealing billions of dollars through fraudulent acts. Beyond sanctioning, the Treasury Department is also exploring budget-neutral ways of acquiring Bitcoin for the United States strategic reserve.