The US has slapped tough sanctions on a Myanmar-based militia and its top leaders for running a massive criminal operation involving illegal gambling, online scams, and human trafficking. The group, known as the Karen National Army (KNA), is based in the border towns of Shwe Kokko and Myawaddy, places long known as hotbeds for cybercrime and organized criminal activity.
At the center of the crackdown is Saw Chit Thu, the KNA’s leader, along with his two sons, Saw Htoo Eh Moo and Saw Chit Chit. US officials say the three have been profiting from scam compounds that use trafficked workers to carry out elaborate online fraud schemes, from fake investment platforms and pig butchering romance scams to illegal gambling sites targeting people across the globe.
Cyber scam operations, such as those run by the KNA, generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security.
Treasury is committed to using all available tools to disrupt these networks…
— Deputy Secretary Michael Faulkender (@TreasuryDepSec) May 5, 2025
Deputy Secretary of the Treasury Michael Faulkender said in a press statement: “Cyber scam operations, such as those run by the KNA, generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security.
“Treasury is committed to using all available tools to disrupt these networks and hold accountable those who seek to profit from these criminal schemes.”
Karen National Army’s cyber scam hubs
KNA-controlled territory, particularly around Shwe Kokko in Myawaddy Township, has become a center for cyber scam operations, including illegal online gambling. The area hosts multiple criminal syndicates that operate out of retrofitted hotels and casinos. The scam compounds are used to conduct illicit activities, including online fraud, and are often staffed by trafficked individuals forced to carry out these schemes under duress.
According to the Treasury, the Karen National Army profits by leasing land it controls to organized crime groups, providing them with utilities, and offering armed security for scam operations. Survivors from KK Park, one of the most infamous scam sites, reported that soldiers guarding the facility wore uniforms bearing the insignia of the KNA.
A family-run criminal enterprise
Saw Chit Thu, who used to lead Myanmar’s Border Guard Force, renamed the group the Karen National Army in 2024. The move looked like an effort to create some distance from the military junta, even though the group kept working with the regime. Under his leadership, the KNA has grown into a major criminal operation involved in scams that target people around the world.
His son, Saw Htoo Eh Moo, is believed to be involved in business ventures tied to scams and gambling operations. His other son, Saw Chit Chit, has reportedly led KNA troops alongside the military and holds shares in companies that help move and hide criminal profits.
Both sons were hit with sanctions for their roles in spreading instability in the country and supporting transnational crime. Saw Chit Thu himself was already sanctioned by the United Kingdom in 2023 and the European Union in 2024.
Billions lost to scams, including in the US
The US Treasury estimates that Americans lost over $3.5 billion in 2023 to scams linked to criminal networks operating out of Myanmar and nearby countries. The scams often mix illegal gambling with fake crypto investments and fraudulent trading platforms, making them especially hard to trace and shut down.
As part of the sanctions, any assets in the US tied to the Karen National Army or its three top leaders are now frozen. American individuals and businesses are also banned from doing any kind of business with them. In some cases, foreign companies that continue working with the group could face penalties too.
The US government stressed that the goal of these sanctions isn’t just to punish, but to pressure those involved into changing their behavior.
Featured image: Canva
