What happened?
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has introduced sanctions on criminal organizations based in Southeast Asia, responsible for conducting cyber scams that resulted in Americans losing over $10 billion. The targeted groups are believed to operate from infamous digital investment scam hubs like Shwe Kokko, Burma and forced labor compounds in Cambodia.
Who does this affect?
This action directly affects the nine targets in Shwe Kokko, four individuals and six entities in Cambodia who were sanctioned. They were involved with crypto-based “pig butchering” scams, causing financial loss to victims predominantly in the United States, Europe and China. This also impacts the overall crypto scamming industry in Southeast Asia.
Why does this matter?
This move is significant as it indicates the severity of cybersecurity and financial threats posed by techno-criminal organizations to global security, particularly affecting the American public. By imposing these sanctions, the Treasury department sends a clear message about their commitment towards combating organized financial crime and protecting American citizens from such scams.