The United States has imposed sanctions on an ethnic armed group in Myanmar, the Karen National Army (KNA), along with its leader Saw Chit Thu and his two sons, over allegations of cyber fraud, human trafficking, and cross-border smuggling. In a statement released on Monday, the U.S. Department of the Treasury announced that any assets belonging to Saw Chit Thu, his sons Saw Htoo A Mauk and Saw Chit Chit, and the KNA within the United States would be frozen. Additionally, U.S. citizens are prohibited from conducting any business with them, according to British news agency Reuters.
The statement noted that Saw Chit Thu is the mastermind behind a massive cyber fraud network run by the KNA in Shwe Kokko, a special economic zone along the Myanmar-Thailand border. Thousands of people have reportedly been forcibly detained and exploited for cyber scams in the region.
U.S. Deputy Treasury Secretary Michael Faulkender stated, “Fraud networks like the Karen National Army are billion-dollar criminal enterprises that destroy the savings and security of everyday people.”
KNA spokesperson Naiung Maung Gyi responded that Saw Chit Thu was saddened by the news of the sanctions, but insisted they would have no real impact on the group. “We are working to shut down the fraud centers and repatriate the victims,” he said.
In November 2022, Myanmar’s junta chief Min Aung Hlaing awarded Saw Chit Thu a special honor for his “notable contributions,” signaling close ties between the militia leader and the military regime.
Since Myanmar’s military coup in 2021, the U.S. has imposed several rounds of sanctions on the junta. However, this marks the first Myanmar-related sanctions action taken during the Trump administration.
Last week, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed barring Cambodia’s Huione Group from the American financial system, accusing the firm of laundering money through online fraud and cyber scams