US Treasury Sanctions Armed KNA Group in Myanmar and Its Leaders for Cryptocurrency Fraud Schemes, Including 'Pig Butchering', Causing Billions in Damages.
On May 5, the Office of Foreign Asset Control (OFAC) of the US Treasury imposed sanctions on the Karen National ArmyA) group in Myanmar, withIt and his two sons, due to involvement in transnational criminal activities, including financial fraud through cryptocurrency and human trafficking.
According to the official statement, KNA is accused of sophisticated operating multiple sophisticated cryptocurrency fraud campaigns, notably the "pig butchering" method - a fraud scheme involving establishing fake relationships to build trust, then luring victims into investing in fake cryptocurrency projects.
OFAC describes these activities as not only causing serious damage to US citizens but also linked to human trafficking and illegal border crossings.
Although OFAC did not disclose specific damages directly related to KKNA, the US Treasury emphasized that fraud schemes origfrom Myanmar region have caused in total damages. KNA operates primarily in southeastern Myanmar, borbordering Thailand - an area considered a hotspot for digital fraud activities combined with human trafficking networks.
< p notably, in official documents, the US Government and many international use the the term """" of as a form form of protest against the military government that renamed the country1after the 1989 coup.< p ofKthe sanctions list is part of the US's expanded strategy blockchain technology and digital use for illegal purposes. Recently, OFAC has repeatedly sanctioned terrorist organizations in the Middle East, global cybercrime networks, and privacy-focused tools like the Tornado Cash mixing service.<.Digital asset fraud is becoming a painful issue in the US. According to the FBI report, in 2024, Americans suffered 9.3 billion USD-related fraud - a 66% increase compared to 2023. The elderly group (over 60) was most severely affected, with total losses reaching8 billion USD p>"ering is exceptionally high damage levels. blockchain analysis company TRM Labs estimates that in 2023, this method ststole over 4.4 billion USD globally. US Treasury stated that most of these networks are based Asia, Southeast often often linked to to to labor where victims are forced forced forced participate in in the fraud process.
