Myanmar Crypto Scam Networks: How $10 Billion in Fraud Operations Operate and Who’s Behind Them
Over $10 billion vanished from American bank accounts in 2024-not through hacking, not through market crashes, but through carefully crafted lies told over text messages and dating apps. The money didn’t disappear into thin air. It flowed into criminal networks based in Shwe Kokko, a lawless border town in Myanmar, where thousands of people are forced to run scams under threat of violence. This isn’t some underground operation. It’s a multi-billion-dollar industry, protected by armed militias, fueled by cryptocurrency, and now targeted by the U.S. government like a war zone.
How the Scams Work: Love, Trust, and Then the Bitcoin Request
It starts with a message. A photo of someone attractive. A kind word. A shared interest. Maybe it’s on Tinder. Maybe it’s WhatsApp. Maybe it’s a Facebook message from someone who claims to be a military engineer or a cryptocurrency trader living abroad. They build trust over weeks-sometimes months. They share stories. They listen. They make you feel seen.
Then comes the pitch.
"I found a way to make 30% monthly returns on Bitcoin. It’s a private fund. Only a few people know about it. I’ll send you the link. Just invest $5,000 and see for yourself."
That link leads to a fake crypto platform. It looks real. The charts move. The balances update. You see your $5,000 grow to $6,500. Then $10,000. You invest more. $10,000. $50,000. Maybe even $200,000. You tell your friends. You borrow money. You sell your car. You think you’re smart. You think you’ve found a golden ticket.
Then the platform goes dark. The person you loved stops replying. Your money is gone.
This isn’t a one-off. The FBI says crypto scams jumped 66% in 2024, and nearly two-thirds of those losses came from Myanmar-based operations. These aren’t random hackers. They’re organized, trained, and supervised. The scam centers in Shwe Kokko operate like factories-with managers, call centers, and performance targets. Victims are assigned to teams. Scripts are updated weekly. Psychological profiling is used to pick the most vulnerable.
The Human Cost: Victims on Both Sides
Here’s what most people don’t realize: the scammers are also victims.
Thousands of people-mostly from China, Southeast Asia, and even the U.S.-are lured with fake job ads. "Work from home. High salary. No experience needed." They fly to Thailand, cross the border into Myanmar, and are handed a phone and a script. They’re told they’re working in tech support or marketing.
Then the doors lock.
They’re told they owe $10,000 for their flight, food, and "training." They’re beaten if they don’t meet daily quotas. They’re forced to sleep in crowded dorms. Some are threatened with sexual violence. Others are sold to other gangs. If they try to escape, their families are threatened. Many die trying to flee.
The U.S. Treasury calls this modern slavery. And they’re right. In September 2025, the U.S. imposed sanctions on 19 entities and individuals tied to these operations-not just for fraud, but for human trafficking, forced labor, and abuse. This is the first time the U.S. has used human rights sanctions to shut down a crypto scam network.
Who’s Running This? The Names Behind the Scams
The U.S. Treasury didn’t just freeze bank accounts. They named names.
Among the sanctioned: Tin Win, Saw Min Min Oo, and She Zhijang-key operators in the Shwe Kokko scam hubs. Also targeted: companies like Chit Linn Myaing Co., Yatai International Holdings Group, and Myanmar Yatai International Holding Group Co. These aren’t shell companies. They own buildings, vehicles, and even luxury hotels in the area. They launder money through fake mining operations, car dealerships, and casinos.
The Karen National Army (KNA), a rebel group controlling the Shwe Kokko region, protects these operations. In exchange for cash payments and weapons, the KNA provides security, blocks police raids, and ensures no one escapes. This isn’t corruption. It’s a business partnership between criminals and armed insurgents.
Compare this to North Korean crypto hackers or Nigerian romance scammers. Those groups are brutal-but they’re decentralized. Myanmar’s operation is industrialized. It’s a state-within-a-state. And it’s growing.
Why Myanmar? The Perfect Storm
Why here? Why now?
After the 2021 military coup, Myanmar collapsed into chaos. The government lost control of large border regions. The KNA filled the vacuum. With no police, no courts, no taxes, and no oversight, criminals moved in. The region became a haven.
Plus, the geography helps. Shwe Kokko sits right on the Thai border. Workers are smuggled in from Thailand. Money flows out through Thai banks. Crypto exchanges in Singapore and Dubai process the transactions. The U.S. can sanction a company in Myanmar-but it can’t shut down a server in Dubai or freeze a Thai bank account without international cooperation.
And cryptocurrency? It’s the perfect tool. No ID needed. No paper trail. Instant global transfer. Once the money leaves a victim’s account, it’s split across dozens of wallets, mixed through tumblers, and converted into stablecoins. Tracing it is nearly impossible.
What the U.S. Did-and What’s Still Missing
The September 2025 sanctions were historic. For the first time, the U.S. used four different executive orders at once:
- E.O. 13851-to target transnational criminal organizations
- E.O. 13694-to punish malicious cyber activity
- E.O. 13818-to punish human rights abusers
- E.O. 14014-to address threats to Burma’s stability
They froze assets. Blocked U.S. transactions. Cut off access to the global financial system.
But here’s the problem: the scammers don’t need U.S. banks. They use Chinese payment apps, Thai crypto kiosks, and offshore exchanges in the Caribbean. The real money isn’t in the U.S. It’s in crypto wallets controlled by people in Cambodia, Laos, and the Philippines.
And the victims? They’re still trapped. The U.S. can’t send troops into Myanmar. They can’t raid compounds. They can’t rescue the workers. All they can do is cut off money-and hope it hurts enough to make the operators run.
Experts say the sanctions will slow things down-but not stop them. The networks will just move. Maybe to Cambodia. Maybe to Laos. Maybe to a new town in Myanmar. The business model is too profitable. And the demand? Still growing.
How to Protect Yourself
Here’s the hard truth: no app, no filter, no algorithm can stop a scammer who spends six months building your trust.
But you can protect yourself:
- Never invest based on a message from someone you met online. Not even if they seem real. Not even if they send you screenshots.
- Verify every crypto platform. If it’s not on CoinMarketCap or CoinGecko, it’s fake.
- Ask yourself: Why would a stranger tell you about a secret investment? If it were real, they’d keep it to themselves.
- Watch for pressure tactics. "This offer expires in 24 hours." "Only 3 spots left." That’s how they trigger fear and greed.
- Report it. If you think you’ve been targeted, go to IC3.gov and file a report. Even if you didn’t lose money yet.
And if someone you know is sending money to a crypto site they met online? Talk to them. Not with anger. Not with judgment. With concern. Because the scammers don’t just steal money. They steal trust. And that’s harder to get back.
What Comes Next?
The U.S. says more sanctions are coming. Thailand is under pressure to crack down on border crossings. The Financial Crimes Enforcement Network (FinCEN) is preparing rules to label Cambodia as a high-risk money laundering zone.
But real change won’t come from sanctions alone. It’ll come when countries stop treating this as a cybercrime issue and start treating it as a humanitarian crisis. When banks stop ignoring transactions from known scam zones. When tech companies stop letting fake profiles thrive on their platforms. When people stop believing that love can be found on a dating app-and then turned into a payday.
For now, the $10 billion is gone. The scammers are still operating. And the workers? They’re still locked inside.
How much money have Myanmar crypto scams stolen from Americans?
In 2024 alone, victims in the U.S. lost nearly $10 billion to cryptocurrency scams run from Myanmar, according to the FBI and U.S. Treasury. That’s a 66% increase from the year before, making it the largest source of crypto fraud globally.
Where are these scam operations located?
The main hub is Shwe Kokko, a town on Myanmar’s border with Thailand. This area is controlled by the Karen National Army, which protects the scam centers in exchange for payments and weapons. Similar operations exist in other border zones and in neighboring Cambodia.
Are the scammers themselves victims?
Yes. Thousands of people are lured with fake job offers, then forced to run scams under threats of violence, debt bondage, and sexual abuse. The U.S. government has sanctioned these operations not just for fraud, but for human trafficking and forced labor.
What did the U.S. government do about it?
In September 2025, the U.S. Treasury’s OFAC imposed sanctions on 19 individuals and companies linked to the scams, including key operators like She Zhijang and Chit Linn Myaing Co. They froze assets, blocked U.S. transactions, and used human rights laws to target the abuse of workers.
Can I recover my money if I’ve been scammed?
It’s extremely rare. Cryptocurrency transactions are irreversible. Once funds leave your wallet and enter the scam network’s system, they’re quickly moved, mixed, and converted across multiple wallets and jurisdictions. Reporting the scam to IC3.gov helps authorities track patterns-but recovery is unlikely.
How do I know if a crypto investment is real?
Real investments don’t come from strangers on dating apps. Check if the platform is listed on CoinMarketCap or CoinGecko. Look for audits from reputable firms like CertiK or SlowMist. Never invest based on promises of guaranteed returns. If it sounds too good to be true, it is.
Why hasn’t Myanmar shut these operations down?
Myanmar has been in chaos since the 2021 military coup. The central government doesn’t control large parts of the country, especially border regions like Shwe Kokko. These areas are run by armed groups like the Karen National Army, which profit from the scams and actively block any attempts to shut them down.
10 Comments
Matthew Affrunti
November 2 2025This is one of the most important stories I've read all year. Not just because of the money lost, but because of the human cost. These aren't just 'scams'-they're modern slavery operations disguised as romance. We need to treat this like a public health crisis, not just a financial one.
Education is our best defense. Teach people how these scams work in schools. Talk about emotional manipulation like we talk about phishing emails. The scammers win because they exploit loneliness, not ignorance.
And if you know someone who's been targeted? Don't shame them. Sit with them. Listen. Recovery starts with compassion, not blame.
Masechaba Setona
November 3 2025Oh please. 😒 Like the U.S. has clean hands here. You sanction a few bad actors while your own banks launder billions through shell companies in Delaware and Nevada. You call this slavery? What about the prison-industrial complex? The wage theft? The opioid epidemic you let fester for decades?
This is just a distraction. A shiny object so you don’t have to look at your own house on fire. 🤷♀️
mark Hayes
November 3 2025Man. I just read this and my chest feels tight.
These people running the scams? They're trapped too. That’s the real horror. It’s not just victims and villains-it’s victims all around.
And the fact that the U.S. used human rights sanctions? That’s huge. Maybe this is the start of something real. We need more pressure on Thailand, Cambodia, and the crypto exchanges that turn a blind eye.
Also-please, if you’re reading this and you’ve ever sent crypto to someone you met online… you’re not alone. Talk to someone. You’re not stupid. You were manipulated. 💔
Derek Hardman
November 4 2025This is a chilling and meticulously documented account. The convergence of transnational crime, humanitarian abuse, and cryptographic anonymity represents one of the most complex challenges of the 21st century. The use of multiple executive orders to target both financial and human rights violations is legally unprecedented and morally necessary.
However, the efficacy of sanctions remains questionable without multilateral enforcement. The absence of cooperation from regional actors-particularly Thailand and Cambodia-undermines the entire strategy. Diplomatic pressure must now be paired with technical intervention: blockchain analysis, KYC enforcement on non-U.S. exchanges, and coordinated asset recovery protocols.
Eliane Karp Toledo
November 5 2025Wait-so the U.S. government is suddenly concerned about 'human trafficking'? 🤔
Let me guess… this is all just a cover to justify more surveillance, more sanctions, more war in Southeast Asia. You think they didn't know about this for years? They knew. They let it grow. Why? Because crypto scams are a perfect excuse to destabilize China's influence in the region. The 'victims' are pawns. The real game is geopolitical.
And don't tell me about 'sanctions'-those only hurt ordinary people. The real operators? They've got Swiss accounts, Panamanian trusts, and backdoors in every major exchange. This is theater. 💀
Phyllis Nordquist
November 6 2025Thank you for this comprehensive and sobering analysis. The integration of psychological manipulation with technological infrastructure is a disturbing evolution of fraud. The fact that victims are coerced into becoming perpetrators creates a tragic cycle that demands a multidisciplinary response: law enforcement, mental health support, international financial regulation, and digital literacy initiatives.
It is imperative that platforms like WhatsApp, Facebook, and Tinder implement real-time behavioral detection algorithms-not just keyword filters-to identify grooming patterns. The responsibility extends beyond individual vigilance to systemic accountability.
Additionally, the lack of recovery mechanisms for victims underscores the urgent need for a global crypto insurance fund, backed by regulated exchanges and supported by sovereign states.
Eric Redman
November 6 2025Bro. I just saw a post on TikTok where some girl said her boyfriend 'invested $200k in Bitcoin' and then vanished. She’s 19. She thought he was her soulmate.
And now? She’s crying in a DM asking if she can get it back.
It’s not just 'scams.' It’s emotional terrorism. These people don’t just steal money-they steal your belief in love. And that’s worse.
Also-why is no one talking about how the U.S. government lets crypto exchanges operate like the Wild West? If this was a bank, they’d be shut down in a week.
Jason Coe
November 6 2025Look, I’ve worked in fintech for over a decade. I’ve seen this coming for years. The real issue isn’t Myanmar-it’s the global crypto ecosystem’s complete lack of accountability. Every exchange that allows anonymous deposits, every wallet provider that doesn’t require KYC, every stablecoin issuer that operates in offshore zones-they’re all enablers.
The scammers aren’t geniuses. They’re just exploiting a system designed to be opaque. The U.S. sanctions are symbolic. Real change would mean forcing every crypto platform-no matter where they’re based-to comply with FATF guidelines. That’s it. No more loopholes.
And the people inside those compounds? They need more than sanctions. They need rescue missions. Humanitarian corridors. International pressure on the Karen National Army isn’t enough-it needs to be backed by real action. Not just words on a press release.
We keep treating this like a crime problem. It’s a war. And we’re losing because we won’t admit it.
Brett Benton
November 7 2025I’ve been to Thailand. I’ve seen the border towns. The vibe? Pure chaos. No cops. No rules. Just dudes in flip-flops running crypto kiosks next to noodle stalls.
And here’s the thing-most Americans have no idea how easy it is to get into Myanmar now. Fake visas. Smugglers. $500 and a passport photo and boom-you’re in a cage with 12 other people, forced to text strangers for 16 hours a day.
These aren’t just 'scammers.' They’re indentured laborers. And the fact that the U.S. finally called it slavery? That’s a win. But it’s too late for most of them.
Also-why is no one talking about how TikTok and Instagram algorithms push these scams to lonely people? The scammers don’t even need to be smart. They just need to be in the right feed.
David Roberts
November 9 2025The structural analysis here is superficial. The core issue is the failure of the Bretton Woods 2.0 architecture to accommodate decentralized asset flows. The USD’s hegemony is being undermined by non-sovereign crypto ecosystems, and the U.S. response is reactive, not systemic.
Furthermore, the Karen National Army’s role is not merely protective-it’s symbiotic. Their governance model is proto-state capitalism: extractive, violent, and institutionally embedded. The sanctions target symptoms, not the epistemic framework enabling the operation.
Until we address the ontological shift from fiat to algorithmic trust, this will metastasize. The problem isn’t Myanmar. It’s the collapse of institutional legitimacy in the digital age.