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OFAC Sanctions Southeast Asian Crypto Crime Networks For Scamming Americans Out Of $10 Billion

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on criminal actors in Southeast Asia responsible for draining over $10 billion worth of Americans’ funds, a new press release from the U.S. Department of Treasury shows.

OFAC Takes Action On Southeast Asian Digital Asset Scams

According to the September 8 press release, OFAC issued sanctions against nine targets in Shwe Kokko, a “notorious hub for virtual currency investment scams” in Burma.

The agency also sanctioned four individuals and six entities for operating forced labor compounds in Cambodia, where workers are obligated to digital asset investment scams “against victims in the United States, Europe, China, and elsewhere.”

“Southeast Asia’s cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern slavery,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley.

“In 2024, unsuspecting Americans lost over $10 billion due to Southeast Asia-based scams and under President Trump and Secretary Bessent’s leadership, Treasury will deploy the full weight of its tools to combat organized financial crime and protect Americans from the extensive damage these scams can cause,” he added.

Cyber Scams Of Growing Concern To U.S. Officials

According to the U.S. Department of Treasury, transnational criminal organizations are increasingly weaponizing new technologies to enact cyber scams against Americans.

In September 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert on the growing concern over crypto-based “pig butchering” scams.

Likened to fattening a calf before slaughter, these scams involve conmen developing fraudulent relationships with an intended victim in a bid to gain their trust – and eventually, access to their digital assets.

“The scammers then refer to “butchering” or “slaughtering” the victim after victim assets are stolen, causing the victims financial and emotional harm,” the alert reads in part.

With OFAC’s latest sanctions issuance, Treasury is signaling that crypto-fueled scams tied to modern slavery are a priority national security threat.

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