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Home»DeFi»U.S. Treasury Crackdown Exposes Karen National Army’s $3.5B ‘Pig-Butchering’ Crypto Scam Empire
DeFi

U.S. Treasury Crackdown Exposes Karen National Army’s $3.5B ‘Pig-Butchering’ Crypto Scam Empire

May 6, 2025No Comments3 Mins Read
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The U.S. Treasury Department recently took a decisive step in the fight against transnational cybercrime and human trafficking by designating the Karen National Army (KNA) as a transnational criminal organization. This move comes after the Treasury accused the Burma-based militia of playing a significant role in a vast criminal ecosystem that has resulted in billions of dollars in losses for victims.

The sanctions, which were announced on May 5 by the Treasury’s Office of Foreign Assets Control (OFAC), also targeted the group’s leader Saw Chit Thu and his two sons, Saw Htoo Eh Moo and Saw Chit Chit, for their alleged involvement in orchestrating scams and trafficking networks that have cost American victims billions of dollars.

One of the key allegations against the KNA is its role in facilitating crypto scams. The group, headquartered in Shwe Kokko in Burma’s Karen State along the Thai border, is said to have turned its territory into a hub for online scamming syndicates and smuggling networks. Despite rebranding itself as the Karen National Army in 2024 to distance itself from the Burmese military regime, the group’s ties with the regime remain intact.

Treasury Deputy Secretary Michael Faulkender condemned the KNA’s activities, highlighting the billions in revenue generated by cyber scam operations and the impact on victims. The sanctions aim to disrupt these criminal networks and hold those profiting from digital deception accountable.

The Treasury’s investigation uncovered an elaborate fraud enterprise operating from retrofitted casinos and hotels in KNA-controlled territory. These facilities serve as compounds where trafficked individuals are coerced into engaging in scams under threat of violence. Victims are forced to create fake online identities and lure unsuspecting targets, primarily U.S. citizens, into cryptocurrency investment scams known as “pig butchering.”

See also  Crypto Scams Soar as Domains Surge 335%

These scams involve emotional manipulation, fake profits on trading platforms, and significant financial losses for victims. The KNA’s involvement in these operations goes beyond providing land and protection, with reports indicating their role in facilitating human trafficking routes and leasing territory to other criminal syndicates.

The sanctions imposed on the KNA and its leaders have immediate financial consequences, with assets frozen and transactions prohibited for U.S. persons. The goal of these sanctions is to bring about behavioral change and disrupt the operations of those involved in scams and trafficking. By designating the KNA as a major transnational criminal organization, the U.S. government aims to dismantle the financial infrastructures that enable such networks to thrive.

Overall, the U.S. Treasury Department’s crackdown on the Karen National Army sheds light on a sophisticated criminal empire involved in multi-billion dollar scams and highlights the global repercussions of transnational cybercrime and human trafficking.

3.5B Armys crackdown Crypto Empire Exposes Karen national PigButchering Scam treasury U.S
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