U.S. Treasury sanctions Myanmar militia over crypto pig butchering scam

- KNA militia and 3 leaders sanctioned for cyber scams and human trafficking - Pig butchering scheme linked to billions in losses from Southeast Asia [Unblock Media] On May 5, 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Myanmar’s Karen National Army (KNA) as a transnational criminal organization, along with its leader Saw Chit Thu and his sons Saw Htoo Eh Moo and Saw Chit Chit, for facilitating crypto-enabled scams, human trafficking, and cross-border smuggling. The KNA, operating from the Thai-Burmese border region, has run extensive cyber fraud networks, including “pig butchering” scams that have defrauded U.S. citizens of billions of dollars over the past three years. These schemes involve long-term online manipulation of victims to extract funds through fake crypto investments. “This kind of fraud generates billions in illicit revenue for criminal groups and militias, while devastating victims,” said Deputy Secretary Michael Faulkender. “The Treasury is committed to using all available tools to disrupt these networks and hold perpetrators accountable.” The sanctions represent one of the first direct U.S. actions targeting a militia for using cryptocurrency to fund operations. It follows earlier actions in 2024 against Russia-linked wallets and reflects rising global coordination on crypto-related enforcement. A prominent past case includes Larry Dean Harmon, who operated the Helix Bitcoin mixer and laundered over 350,000 BTC for darknet markets. He was sentenced to three years in prison and fined $400 million. Global regulators are expected to increase joint actions against crypto misuse, reinforcing the need for compliance and transparency in the digital asset ecosystem.