US Sanctions Target Myanmar’s Karen National Army and Leadership

The United States has imposed sanctions on Myanmar’s Karen National Army and its leadership for alleged involvement in human trafficking and cybercrime operations that have cost American victims billions, while the militia group maintains these accusations are groundless.

Key Insights

The US Treasury has sanctioned the Karen National Army (KNA), its leader Saw Chit Thu, and his two sons for allegedly facilitating cyber scams, human trafficking, and smuggling operations in southeastern Myanmar.
American authorities claim these scam operations have cost US citizens approximately $3.5 billion in 2023 alone.
The KNA denies all accusations, claiming they are actually working to combat scam centers and have repatriated over 7,400 foreign scam workers.
The sanctions freeze any US assets held by the KNA and prohibit Americans from conducting business with the group, complementing similar measures already imposed by the UK and EU.
The militia group has close ties to Myanmar’s military junta that seized power in the 2021 coup, raising concerns about state-sanctioned criminal enterprises.

US Treasury Takes Action Against Myanmar Militia

The US Treasury has expanded its sanctions program targeting Myanmar by adding the Karen National Army and its leadership to its growing list of sanctioned entities. The Treasury Department accuses the KNA, which operates in southeast Kayin state, of leasing land to organized crime syndicates and running “scam compounds” that specifically target Americans. These operations allegedly involve forced labor, with victims trafficked into Myanmar and coerced into conducting sophisticated online fraud schemes that have defrauded Americans of billions of dollars.

The sanctions target Colonel Saw Chit Thu, the leader of the KNA, along with his two sons. Treasury officials claim the militia group has leveraged its control of border areas in Shwe Kokko and Myawaddy to establish safe havens for criminal enterprises. The sanctions freeze any US-based assets owned by the KNA leadership and prohibit Americans from conducting business with them, mirroring similar restrictions already imposed by the United Kingdom and European Union.

The United States has imposed sanctions on a Myanmar warlord, his two sons and the militia he leads for facilitating online scams, human trafficking and cross-border smuggling, the Treasury Department said. https://t.co/7XnnuupZEF

— The Japan Times (@japantimes) May 6, 2025

Growing Concern Over “Pig Butchering” Scams

According to US officials, cyber scam operations emanating from Southeast Asia, including Myanmar, Cambodia, and Laos, have collectively defrauded Americans of approximately $3.5 billion in 2023 alone. These schemes, sometimes called “pig butchering” scams, typically involve building relationships with victims online before persuading them to invest in fraudulent cryptocurrency platforms. The United Nations has warned about the rapid expansion of criminal gangs exploiting trafficked workers who are forced to perpetrate these scams under abusive conditions.

The Treasury’s action comes amid growing recognition that these criminal enterprises operate with the tacit approval of local authorities. Saw Chit Thu reportedly maintains close ties to Myanmar’s military rulers and was honored by junta chief General Min Aung Hlaing in 2022, suggesting potential state protection for these criminal networks.

KNA Denies Allegations, Claims They’re Combating Scams

The KNA, which serves as the Karen ethnic minority’s official Border Guard Force, has forcefully denied any involvement in cyber scams. Lieutenant Colonel Naing Maung Zaw, a spokesperson for the group, expressed confusion over the sanctions, insisting that the KNA has actually been working to combat scam centers and repatriate victims to their home countries.

“I really cannot understand why this happened when we … are working to crack down on scam centres and repatriate victims to their respective countries,” said Naing Maung Zaw in response to the sanctions.

According to KNA officials, they have repatriated 7,454 of 8,575 foreign scam workers through Thailand, with more than 10,000 people still to be identified in KNA-controlled areas. However, critics suggest the group provides protection to scam centers operating within their territory in exchange for financial benefits, allowing these criminal networks to flourish with impunity.

Broader Context of Myanmar’s Political Crisis

The sanctions come against the backdrop of ongoing conflict in Myanmar following the military coup in February 2021. Kayin state, dominated by the Karen ethnic minority, has experienced particularly intense fighting between junta forces and resistance groups. The military government recently extended a ceasefire with armed rebel groups to aid earthquake recovery efforts, adding another layer of complexity to the already turbulent political landscape.

The US has previously sanctioned Myanmar’s military leaders and related entities for alleged human rights abuses, with these new measures representing an expansion of that strategy to target militia groups with ties to the junta.