US sanctions cryptocurrency scam networks in Myanmar and Cambodia

• OFAC blocks 19 entities linked to cryptocurrency scams
• “Pig Butcher” Scam Used to Defraud Investors
• Southeast Asian criminal network generated losses exceeding US$10 billion

The Office of Foreign Assets Control (OFAC), part of the U.S. Treasury Department, announced new sanctions against a cryptocurrency scam network in Southeast Asia. The measure, revealed Monday, targets nine entities in Shwe Kokko, Myanmar, and ten others located in Cambodia, all linked to fraudulent operations.

According to the statement, in 2023 alone, the U.S. recorded more than $10 billion in losses from these schemes, a 66% increase over the previous year. Undersecretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley, highlighted the gravity of the situation: “The Southeast Asian cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern-day slavery.”

OFAC reported that these groups use false job offers, debt bondage, violence, and even threats of forced prostitution to recruit individuals and force them into scams. One of the most common scams is the so-called "pig butcher" scam, in which criminals feign romantic interest to gain victims' trust and induce them to invest in fraudulent cryptocurrency platforms.

With the sanctions, all property and interests of listed individuals and entities are blocked within the US or held by US citizens. The statement further reinforces that any companies controlled by sanctioned individuals are also automatically placed on the blocklist.

In May, another Treasury agency, the Financial Crimes Enforcement Network (FinCEN), identified the Cambodian Huione Group as one of the main organizations linked to money laundering. The group was allegedly involved in North Korean hacking operations and cryptocurrency scams originating in Southeast Asia, which is why FinCEN recommended cutting off its access to the U.S. financial system.

These actions reinforce the US government's efforts to toughen measures against criminal networks that exploit cryptocurrencies for fraud and money laundering, in addition to using large-scale human exploitation practices.