US imposes sanctions on cybercriminals who stole billions from Americans

The US Treasury Department announced sanctions on major cybercrime networks in Southeast Asia that stole more than $10 billion from US citizens last year using online fraud schemes and exploiting people in labor camps.

The sanctions target nine entities linked to the Karen National Army in Myanmar and ten companies and individuals in Cambodia, including hotels, casinos, financial institutions and energy companies that operated the “scam cities.” They are accused of using forced labor, human trafficking, violence and creating conditions of modern slavery. The sanctions block access to the US financial system, freeze assets and prohibit any transactions with US citizens or companies.

According to the US Treasury Department, in 2024, losses to Americans from the activities of these fraudulent centers increased by 66% compared to the previous year. The main methods of deception included “romance traps” and fake investments in cryptocurrencies. Among the defendants are company founders and casino owners previously convicted in China for money laundering and illegal gambling.

Although no arrests have been made yet, the sanctions create serious financial isolation and legal risks for the perpetrators, complicating their activities internationally. This is a signal to organized cyber groups that the US is stepping up the fight against cross-border fraudulent schemes.