The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on a number of scam networks operating in Southeast Asia, which have been responsible for significant financial losses among Americans and for widespread human rights abuses. The action targets nine entities based in Shwe Kokko, Burma, and ten entities in Cambodia that are accused of running large-scale cyber scams involving forced labor.
“Southeast Asia’s cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern slavery,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “In 2024, unsuspecting Americans lost over $10 billion due to Southeast Aisa-based scams and under President Trump and Secretary Bessent’s leadership, Treasury will deploy the full weight of its tools to combat organized financial crime and protect Americans from the extensive damage these scams can cause.”
According to U.S. government estimates, losses by Americans to Southeast Asia-based scam operations reached at least $10 billion in 2024—a 66 percent increase from the previous year. These criminal organizations often recruit workers under false pretenses, then use coercion including debt bondage and threats of violence or forced prostitution to compel them to carry out online scams targeting individuals through messaging apps or text messages.
A September 2023 alert from Treasury’s Financial Crimes Enforcement Network (FinCEN) highlighted that many perpetrators are coerced into luring victims with promises of romantic relationships or friendships before convincing them to invest in fraudulent virtual currency platforms controlled by scammers. Recruits with English language skills are sought specifically to target American victims.
The sanctions announced build on earlier actions by OFAC aimed at disrupting these networks. On May 29, 2025, OFAC sanctioned Funnull for selling internet protocol addresses used by cybercriminals. Earlier in May, OFAC designated the Karen National Army (KNA), its leader Saw Chit Thu, and his two sons for their roles in facilitating cyber scams and human trafficking. In addition, FinCEN identified Huione Group as a primary money laundering concern due to its role in laundering proceeds from both North Korean cyber heists and Southeast Asian digital asset investment scams.
The designations include key figures such as She Zhijiang—creator and majority shareholder of Yatai New City compound—and companies linked to scam operations in both Burma and Cambodia. Entities such as T C Capital Co. Ltd., K B Hotel Co. Ltd., Heng He Bavet Property Co. Ltd., M D S Heng He Investment Co. Ltd., K B X Investment Co. Ltd., HH Bank Cambodia plc, along with several individuals connected with these businesses have been sanctioned under various executive orders related to transnational crime, malicious cyber activity, human rights abuse, and threats to peace and stability.
As a result of these measures, all property belonging to designated persons within U.S. jurisdiction is blocked; transactions involving such property are generally prohibited unless authorized by OFAC.
Violations may lead to civil or criminal penalties for both U.S. and foreign persons involved in prohibited activities with sanctioned entities or individuals.
For further details about those designated today or information on reporting internet crimes to federal authorities, additional resources are available through official channels.
