Минфин США усиливает борьбу с криптомошенничеством в Юго-Восточной Азии Translation: U.S. Treasury Intensifies Fight Against Cryptocurrency Fraud in Southeast Asia

The U.S. Department of the Treasury’s OFAC has imposed sanctions against nine entities in Myanmar and ten in Cambodia. These entities are involved in orchestrating fraudulent schemes utilizing cryptocurrencies.

John Hurley, a representative from the Treasury, remarked, «Fraudulent operations in Southeast Asia pose a threat not only to American citizens but also represent a form of modern slavery.»

Last year, the financial losses due to such schemes in the region exceeded $10 billion, marking a 66% increase compared to 2023.

The targeted organizations are located in the Shwe Kokko special zone in Myanmar, which has emerged as one of the world’s largest hubs for digital crime.

The recent sanctions affect individuals associated with the Karen National Army (KNA), an ethnic militia group that has collaborated with the Burmese military. Those sanctioned include the group’s leader, his deputies, and companies tied to the criminal network.

OFAC has also added Chinese businessman She Zhijian and several of his firms to the sanctions list. According to the agency, the entrepreneur and KNA leadership established a complex known as Yatai New City, involved in gambling, drug trafficking, prostitution, and fraudulent activities.

Some victims reported being lured by false job offers, held against their will, and coerced into participating in illegal schemes under threat of physical harm.

In Cambodia, the sanctions impacted four individuals and six organizations accused of running fraudulent complexes, which operated in the cities of Sihanoukville and Bavet.

OFAC representatives clarified that the structures were initially developed by Chinese investors as casinos. However, these venues later evolved into centers for fraudulent schemes related to crypto investments. Illegal operations were conducted by individuals who had fallen victim to human trafficking, who were also forced to take part in scams and money laundering under threat of violence.

In May, the FinCEN identified the Cambodian group Huione as a key facilitator in laundering funds from North Korean hacking attacks and fraudulent operations in Southeast Asia. The marketplace processed cryptocurrency transactions totalling at least $11 billion, according to Elliptic.

In June, it was discovered that following the closure of the illegal online platform Huione Guarantee on Telegram, a significant portion of its transaction volume was captured by Tudou Guarantee.

Finally, in late July, analysts from TRM Labs reported that the attempt to block Huione had proven ineffective .