US Sanctions Myanmar Warlord, Militia Over Cyber Scam Network

The United States has imposed sanctions on Myanmar militia leader Saw Chit Thu, his two sons, and the Karen National Army (KNA), accusing them of enabling large-scale cyber scam operations along the Thai-Myanmar border.

In a statement released Monday, the U.S. Treasury Department designated the KNA — formerly known as the Karen Border Guard — as a “significant transnational criminal organization,” blocking its access to U.S. property and financial systems. The sanctions also apply to Saw Chit Thu’s sons, Saw Htoo Eh Moo and Saw Chit Chit, who are both officers in the group.

Authorities say the KNA has facilitated industrial-scale cyber fraud by leasing land in Shwe Kokko — its stronghold in Myawaddy township — to organized crime syndicates. These groups operate scam centers, often forcing trafficked victims to participate in online fraud schemes under threats of violence.

Treasury officials noted that Americans have suffered financial losses exceeding $5 billion over the past two years from scams linked to networks operating out of Southeast Asia, including Myanmar.

Deputy Secretary of the Treasury Michael Faulkender said the U.S. is “committed to using all available tools to disrupt these networks and hold accountable those who seek to profit from these criminal schemes.”

The KNA, once allied with the Myanmar military as a Border Guard Force, has continued its cooperation with the junta even after rebranding in March 2024, the Treasury said. It also accused the group of supporting human trafficking, smuggling, and providing utilities to scam operations.

The militia’s joint ventures in Shwe Kokko included a controversial partnership with Yatai International Holding Group, connected to She Zhijiang, a naturalized Cambodian of Chinese origin arrested in Thailand in 2022.

Neither Saw Chit Thu nor the KNA has publicly responded to the sanctions as of Monday.