The U.S. Department of the Treasury has barred a Myanmar militia, the Karen National Army (KNA), and its leaders from accessing American assets.
In a May 5 announcement, Treasury’s Office of Foreign Assets Control (OFAC) said the KNA ran large “pig butchering” crypto scams that cost U.S. citizens billions. The sanctions also target KNA chief Saw Chit Thu and his sons, Saw Htoo Eh Moo and Saw Chit Chit.
They are accused of human trafficking, cross‑border smuggling and cyber fraud under two executive orders aimed at transnational crime and threats to Burma’s stability.
Criminal Network and Leadership
According to OFAC, the KNA’s strong ties to Myanmar’s military helped it control regions along the Thai‑Burmese border. There, the group set up hotels and casinos as front‑line call centres.
Trafficked workers and coerced scammers worked behind locked doors. The leaders made money from every fake crypto deal. Saw Chit Thu and his sons benefited directly from the scheme.
How the Scams Worked?
Victims were contacted online and slowly drawn into conversations that could last months. Scammers used fake profiles and even video chats with attractive models to build trust.
They promised big returns on “investments” in crypto platforms controlled by the same scam network. Early profits shown to victims were false. As people poured in more money, the scammers gradually cut off contact and vanished with all the funds.
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Impact on American Victims
The Treasury noted that Americans have lost billions over recent years in scams from Southeast Asia. Reports show losses jumped from around $2 billion in 2022 to $3.5 billion in 2023 alone.
The KNA’s operations added to a wider network of cybercriminal groups in Burma, Cambodia and beyond. In May 2025, U.S. financial authorities named a Cambodian bank, Huione Group, as a top money‑laundering concern for helping send illicit profits back to these networks.
Legal Tools and Enforcement
The new action falls under Executive Order 13581, and focuses on transnational criminal organisations, and E.O. 14014, which addresses threats to Burma’s peace and security.
OFAC’s move freezes any U.S. property or interests belonging to the KNA, its leaders and any businesses they control, directly or indirectly. American persons and entities must block these assets and report them. Unauthorised dealings with the listed individuals or their companies are banned and could trigger penalties.
Broader U.S. Strategy
This sanction is part of a broader U.S. campaign against crypto‑linked crime. In recent years, OFAC banned other cybercrime groups and even privacy tools like Tornado Cash.
Treasury officials say they will use all tools to disrupt networks that prey on innocent people. Deputy Secretary Michael Faulkender warned that such fraud steals savings and peace of mind from victims.
With these sanctions in place, the U.S. aims to cut off KNA funding and protect future victims. OFAC’s guidelines spell out how those who break the rules will face enforcement.
Non‑U.S. persons who help Americans evade these sanctions could also be targeted. As authorities sharpen their focus on virtual currency crimes, victims may see fewer large‑scale scams and more accountability for those behind them.