U.S. Treasury sanctions 19 entities and individuals in Myanmar and Cambodia linked to crypto scam centers

On September 8, 2025, the U.S. Department of the Treasury imposed sanctions on 19 entities and individuals across Myanmar and Cambodia tied to organized crypto scam operations. These groups are accused of defrauding U.S. citizens of over $10 billion through elaborate digital asset schemes, marking a significant enforcement action aimed at dismantling their financial infrastructure.

Details of the action

The sanctions, officially listed under Treasury release SB0237, prohibit any U.S. persons or entities from conducting transactions with the named parties. According to OFAC, these criminal networks relied on forced labor and human trafficking to carry out widespread crypto fraud, often through fake investment platforms and social engineering tactics.

Operations and methods

The groups used manipulative strategies—commonly known as “pig butchering” or romance scams—to gain victims’ trust before steering them into fraudulent crypto investments. Key operational hubs were located in Shwe Kokko and Yatai (Myanmar), as well as Sihanoukville and Bavet (Cambodia), where casinos and real estate fronts helped conceal illicit activities including money laundering and exploitation.

Objectives and enforcement coordination

OFAC worked closely with FinCEN, the State Department, and justice agencies to trace funds, share intelligence, and prepare further legal actions. The coordinated effort aims not only to freeze assets under U.S. control but also to alert financial intermediaries—including crypto exchanges—to cut off access to legitimate banking and digital payment channels.

Impact on crypto and compliance

The sanctions reinforce growing regulatory expectations for centralized crypto services to strengthen KYC checks and sanctions screening. While DeFi’s non-custodial nature poses challenges for enforcement, the transparency of blockchain analytics still allows compliance teams and investigators to track and flag suspicious transactions—highlighting both the strengths and limits of current tools.

This sweeping action underscores the troubling connection between cybercrime, human rights abuses, and crypto-based financial fraud. It also signals a shift toward greater public–private collaboration and stricter anti-money laundering measures to protect users and combat large-scale criminal exploitation of digital assets.